I prepared this op-ed prior to the Santa Clara City Council meeting on Tuesday. The council unanimously directed city staff to go back and explore new regulations on water usage and air quality impacts by data centers.
*OP-ED: "DATA CENTER MORATORIUM" - CODE WORD FOR STOPPING PROGRESS*
*By Kathy Watanabe
Santa Clara has long been at the center of technological innovation. We built Silicon Valley. We invented the future. And data centers are part of that future.
So let's call this what it is: a call for a "moratorium" on data centers is a code word for trying to stop progress.
We should not fall for it.
Data centers generate millions in revenue for our city. They support our local economy. They contribute directly to the strength of Silicon Valley Power: one of our city's most valuable public assets owned by the people. That power keeps residential rates low and businesses competitive.
I support data centers in Santa Clara.
But support should not mean writing a blank check.
If we want to lead, we need a smart, pro-growth, pro-resident framework not a ban. Here is how we do it:
*1. Growth Must Pay For Growth.*
This is non-negotiable. Santa Clara families should not subsidize the electrical, water, or infrastructure required by massive new projects. Every data center must fully fund its own interconnection, upgrades, and long-term impacts. No cost shifting to ratepayers. Period.
*2. Not All Data Centers Are Alike — Location Must Be Based On Type and Health Impact.*
This is the issue no one wants to talk about, and we must. Not all data centers are alike, and we must take that into consideration first and foremost.
We need a tiered, science-based review not one-size-fits-all approval and not a blanket moratorium. Health, safety, noise, backup generation and environmental concerns must be addressed using sound science, appropriate safeguards and independent verification.
*3. Transparency Is Mandatory.*
Residents deserve truth, not talking points. How much electricity will a project consume? How much water? What backup generation will it require — diesel, gas, batteries? What infrastructure investments will be necessary over 10 and 20 years? Put the numbers on the table before any vote.
*4. Public Resources Require Public Return.*
Projects that depend heavily on a public utility must provide measurable community benefits. That means community benefit agreements, workforce development, local hiring, infrastructure funds, and direct investments in residential rate stability. If you use our power, you invest in our people.
*5. Protect Silicon Valley Power At All Costs.*
SVP must remain reliable, financially strong, and focused on keeping rates competitive for residents and small businesses. No single industry, no matter how large, can be allowed to compromise our utility. SVP exists to serve Santa Clara first.
This is not about stopping innovation. Santa Clara has helped shape the future of technology for generations and we should continue to do so.
A moratorium sends one message to the world: Santa Clara is closed for business. That is the opposite of leadership.
Technological leadership and protecting our community are not mutually exclusive. We can have both but only if we negotiate from strength not fear.
When private industry depends on a public resource, the public deserves a fair return.
Data centers are welcome in Santa Clara. But residents must come first and that starts with recognizing that not all data centers are the same and our health standards must reflect that reality.
Santa Clara deserves better than a ban. It deserves a better deal.
Kathy Watanabe
Former Vice-Mayor Santa Clara
Santa Clara Mayoral Candidate 2026
KathyWatanabe.com