Oakley extends ban on data centers

OAKLEY - The first city in the Bay Area to ban data centers, Oakley will continue its moratorium into next year.

The Oakley City Council unanimously approved an extension of its current 45-day pause, which was approved last month. The moratorium will now be in place until April 14, 2027, said Oakley City Attorney Derek Cole.

With the pause in place, the city will be prohibited from accepting, processing or approving any land use applications for data centers.

"We have two years maximum by which we can have a moratorium in place. There are two extensions you can make," said Cole during a City Council meeting May 12.

The second extension will give the city another year, said Cole.

The extended moratorium will allow city officials to "fully evaluate" impacts related to data centers and come up with a permanent ordinance to regulate such uses, according to a staff report.

"Specifically, the Council intends to schedule multiple joint planning sessions with the Planning Commission," read the staff report. "The joint planning sessions will allow the Council and Planning Commission to gather public input, discuss impacts, and, if desired, to create a workable framework from which to draft zoning regulations around data center land uses."

Concerns about data centers prompted the pause as they face pushback from many communities nationwide over complaints of excessive water and energy use.

During the May 12 council meeting, one resident said data centers used for technologies such as artificial intelligence will consume a significant amount of water, which will impact agricultural communities in Oakley and neighboring Brentwood.

Councilmember George Fuller said information about data centers remains unclear and supported city officials seeking to develop standards for such uses. He was also in favor of hiring outside consultants to help the city get a better understanding.

In March, the Oakley City Council directed staff to present a proposed moratorium ordinance for consideration following the approval of the Bridgehead Industrial Project, which had initially included data centers as part of its use.

The project's developer subsequently withdrew the data center use at the last minute during the March meeting, after community pushback over possible environmental and health impacts.

The project drew criticism and concerns from some residents over the strain data centers would place on resources.

In January, the Oakley Planning Commission had initially given the project the green light, with a stipulation that a conditional use permit be required for data centers to operate on the property.

Copyright 2026 Tribune Content Agency. All Rights Reserved.