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Oakland Council Weighs Yearlong Freeze on AI Data Centers

Oakland's City Council is set to vote Tuesday on extending a 45-day moratorium on new AI data centers to a full year, as residents and officials raise alarms about noise, power demand and water use.

Oakland Council Weighs Yearlong Freeze on AI Data Centers

Oakland's City Council is expected to vote Tuesday on whether to stretch a temporary pause on new artificial intelligence data centers into a full-year moratorium, a decision that could shape how the city handles one of the fastest-growing corners of the tech economy.

The council approved a 45-day moratorium last month on the development of new AI data centers. The proposal before members Tuesday would extend that freeze by 10 months and 15 days, bringing the total to a year.

The shorter pause has already halted plans for a 20,000-square-foot building in downtown Oakland, according to city officials.

Councilmember Carroll Fife said the additional time would let city staff more thoroughly assess how data centers affect Oakland and what safeguards are needed to protect residents.

"The extra time will give staff a better opportunity to evaluate the potential impacts the centers have on Oakland and how to protect the public," Fife said.

The facilities, which house the servers that power artificial intelligence systems, have drawn growing resistance across the Bay Area and the country. Critics argue they generate excessive noise and place heavy demands on the electrical grid and water systems used to cool the equipment.

Several nearby cities have already moved to restrict them. Gilroy, Richmond and San Francisco recently approved their own moratoriums, and Pittsburg's City Council imposed a 45-day pause in late October amid resident protests. Hayward and other East Bay cities have also begun exploring similar measures.

The debate in Oakland comes as local governments across the region grapple with how to capture the economic benefits of the AI boom while shielding residents from its environmental and infrastructure costs. Supporters of a longer moratorium say a year would give the city time to craft rules that address those concerns rather than reacting project by project.

Tuesday's vote is scheduled during the council's regular meeting. If approved, the extended moratorium would remain in effect while staff complete their review and return with recommendations.

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