San Francisco imposes temporary ban on new data centers

On Tuesday, San Francisco's Board of Supervisors passed a 45-day moratorium on new data center construction within city limits, becoming the latest municipality to address environmental concerns surrounding these facilities. The unanimous decision went into effect immediately and could be extended for up to two years as officials consider permanent restrictions.

Supervisor Connie Chan, who is running for Congress, co-sponsored the measure. The ordinance specifically targets a planned development in the Bayview-Hunters Point neighborhood, an area already grappling with air pollution and environmental justice issues. The moratorium aims to tackle concerns over water usage, electricity costs, and the environmental impact of data center operations.

This move follows a trend of U.S. locations, including parts of New York state, limiting data center development. Data centers serve as critical infrastructure for the rapidly expanding artificial intelligence industry, with San Francisco hosting major players like OpenAI and Anthropic PBC. The city currently lacks a comprehensive count of its existing data centers.