DATE: October 20, 2026
TO: Mayor and City Council
FROM: City Attorney and Development Services Director
SUBJECT
Title
Temporary Moratorium on New Data Centers: Adopt an Interim Urgency Ordinance Pursuant to California Government Code Section 65858, Imposing a Temporary Moratorium on New Data Centers in Hayward, and Finding that the Action is Exempt from Environmental Review
End
RECOMMENDATION
Recommendation
That the City Council adopts an interim urgency ordinance (Attachment II) imposing a temporary moratorium on new data centers and finds that this action is exempt from environmental review under the California Environmental Quality Act (CEQA).
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SUMMARY
On August 12, 2026, three members of the City Council issued a referral directing staff to develop various options to limit or ban future data center development due to potential health and environmental risks, rising utility costs and overconsumption of natural resources. The referral also directed the Council Sustainability Committee to develop a report on economic and environmental impacts of existing data centers in Hayward.
On September 15, 2026, following a public meeting on the referral, the City Council voted unanimously to direct staff to prepare findings to impose a temporary moratorium on data center development to allow time for staff to conduct additional analysis on the impacts that data center development may have on natural resources, and depending on the conclusions of that analysis, to develop updated regulations or an outright ban on data centers.
State law (Government Code section 65858) authorizes, as a means of protecting public health, safety and welfare, the adoption of an interim ordinance to establish a temporary moratorium on specified uses that may be in conflict with a contemplated general plan, specific plan, or zoning proposal that the City is considering, studying, or intends to study within a reasonable time. The urgency ordinance requires a 4/5 vote (6 affirmative votes) of the legislative body and can last for up to two years (45-day initial term with initial extension up to 10 months and 15 days and subsequent extension up to one year).
ATTACHMENTS
Attachment I Staff Report
Attachment II Urgency Ordinance
Attachment III Summary of State Legislation