Bay Area City Becomes First To Ban Data Centers Over Power and Water Concerns

Oakley has become the first Bay Area city to temporarily ban new data centers, signaling a more cautious approach as other parts of Silicon Valley continue to line up projects to meet rising demand for artificial intelligence.

The Oakley City Council voted unanimously Tuesday to impose a 45-day moratorium on data center projects, barring the city from accepting or processing related land-use applications. Under state law, the ban can be extended in phases to last up to two years.