Would You Want to Live Next to Data Centers? They’re Closer Than They Appear

Hayward’s temporary development moratorium raises questions about the environmental and community impacts of the growing data center industry.

On Oct. 20, the Hayward City Council voted unanimously to enact a temporary ban on data center development, giving the city 45 days to investigate potential impacts on electricity, water consumption, noise, air quality, and long-term consequences – and, if necessary, this moratorium can be extended to two years.

At a Hayward City Council meeting, a representative of one of California’s largest tech companies, SVLG, spoke about the benefits of expanding and adding to Hayward’s four data centers.

Eric Negomir, a Silicon Valley Leadership Group representative, stated, “As you consider options around data centers… We urge you to look beyond prohibiting new data centers, and instead build on your recent work to ensure responsible development. Done right, data centers deliver significant tax revenues and infrastructure upgrades without harming residents’ quality of life.”

Upon answering the question of where he lived, Negomir answered, “I live in Los Gatos, and I work in Silicon Valley,” after which he allegedly got booed and heckled out of the room.

Negomir’s claims highlighted a vastly different perspective on the expansion of these data centers between industry representatives and nearby residents. While he emphasized potential economic benefits in his pitch, locals at the meeting showed their concern about the environmental and infrastructural ramifications of nearby construction. His residence in Los Gatos, a city that has zero active data centers, further distances his perspective from those living with everyday consequences.

Government officials report the environmental effects of data centers. Representative Alexandria Ocasio-Cortez (D-N.Y.) pressed EPA Assistant Administrator for Water Jessica Kramer, during a House Energy and Commerce Oversight and Investigations Subcommittee hearing about the impact of data center construction on local drinking water.

“They now rely on bottled water to drink and prepare meals… These families now have to ship, in a rural area, have to ship water to their house in order to cook and bathe themselves,” Ocasio-Cortez explained, describing how families living near construction have reported declining water pressure and quality.

These accounts illustrate how data center development goes beyond simple construction sites, but impacts the daily lives of nearby families. Access to clean, reliable water is a basic necessity, yet communities near these projects report disruptions that affect everyday activities. These concerns bring attention to how the environmental and infrastructure demands of data centers are being addressed.

She then raised concerns about the financial burden placed on the people of Morgan County, saying that “nearby residents’ water bills are expected to increase by 33 percent.” Concluding her report with an important question: “Are there gonna be any open investigations?”

In response to this new evidence, Kramer said, “As soon as I get back to the office, I will be looking into exactly what you’ve just talked about.”

While Kramer’s response suggested concern and a willingness to examine further, there was no formal investigation by the EPA. Her statement provided little clarity about what action would follow and how quickly an ailment would come when communities expect answers. As locals pay more for fewer necessities, this meeting remains an example of the importance of government oversight in addressing community considerations surrounding developments.

Shifting the discussion to government oversight, Ocasio-Cortez asked whether sufficient government oversight is in place to protect communities before data center construction begins. She specifically pointed to the administration’s efforts to, in fact, fast-track data center construction despite the increasing, blatant concern about environmental quality. When she asked whether data centers require water quality testing before establishment, Kramer responded, “I’m not aware of anything like that.”

The congressional hearing exchange highlights a troubling contradiction: while the administration pushed to accelerate data center expansions, concerns about the environmental consequences and lack of protection surrounding local communities remain. Now, Hayward must decide whether to welcome large-scale development and, if so, how to protect the people who were there first.

For Hayward residents, the City Council’s moratorium prompts further discussion that goes beyond technology and new buildings: when a project could affect an entire community’s daily life, who should have the final say? Data centers contain computer servers used to handle digital information while supporting services like cloud storage and artificial intelligence. As the demand for computing power increases, the need for supporting electricity, cooling systems, and infrastructure grows as well. Are the costs worth the consequences?

As Hayward evaluates what the future of the city looks like, residents and its City Council face an evaluation that extends beyond economic growth and technological advancement. The council’s moratorium gives time and conditions to examine how these facilities may affect local resources, infrastructure and surrounding neighborhoods. Ultimately, the city’s decision will set the standards that future construction must meet moving forward.