City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: OCTOBER 20, 2026 FROM: LAND USE COMMITTEE WARDS: ALL
SUBJECT: DATA CENTER DISCUSSION
ISSUE:
Review and discuss Data Centers.
LAND USE COMMITTEE RECOMMENDATION:
On October 8, 2026, this item was agendized for both the Land Use Committee and the full City Council to comply with the Sunshine Ordinance and preserve the opportunity for the full Council to consider the matter, if desired.
At the time the staff report was published, the Land Use Committee had not yet convened; therefore, the committee’s recommendation was not available for inclusion. The staff report will be revised to reflect the Committee’s recommendation following its meeting.
Should the Committee’s discussion and recommendation eliminate the need for further consideration by the full City Council, the item may be withdrawn from the Council agenda, consistent with our normal practice.
BACKGROUND:
At the September 14,2026 Land Use Committee meeting the Committee discussed prohibition of Data Center as a Land Use in the City of Riverside. Alternatively, Councilmember Robillard introduced an AI Working Group that would discuss this and other topics. To achieve policy level clarity on the topic, staff reached out to members of the Land Use Committee to request this topic be discussed at a Special Meeting of the Land Use Committee. The Special Meeting was due to a holiday closure.
Advances in cloud computing, artificial intelligence, cryptocurrency processing, large-scale digital storage, and high-density computing have resulted in a substantial increase in proposals for large industrial-scale data centers. Cities have been busy taking actions to:
Institute Temporary Moratoriums
Extend Initial Moratoriums to longer terms
Amending their Zoning Codes
Adopting data center prohibitions
And finally, taking the Data Center development to the ballot via initiative DISCUSSION:
Data Centers provide the computing hardware—servers, storage systems, and networking equipment—necessary for today’s digital economy. However, communities nationwide are experiencing repercussions from accelerating data center land uses, including increased demands for energy and water consumption; increased noise; crime and security issues; diminished air quality; pollution; aesthetic impacts; and decreased property values and quality of life to surrounding neighborhoods.
Currently, the Riverside Municipal Code does not regulate, restrict, nor define, data center uses. Certain areas of the city (e.g., specific plan areas) allow industrial uses and utilities to be principally permitted or permitted with a conditional use permit, but the Municipal Code is silent to the term “data center”. Staff noted that there had been no active or pending applications for new server farms or large-scale data centers.
City Planning Staff have used the default provision within 19.110.020 (Permitted Land Uses). That section is as follows:
Table 19.150.020.A (Permitted Uses Table), Table 19.150.020.B (Incidental Uses Table and Table 19.150.020.C (Temporary Uses Table) in Chapter 19.150 (Base Zones Permitted land uses) identify permitted uses, permitted accessory uses, permitted temporary uses, and uses permitted subject to the approval of a minor conditional use permit (Chapter 19.730—Minor Conditional Use Permit) or conditional use permit (Chapter 19.760—Conditional Use Permit), or uses requiring some other permit. Table 19.150.020.A also identifies those uses that are specifically prohibited. Uses not listed in the tables are prohibited unless, the Community & Economic Development Director or his/her designee, pursuant to Chapter 19.060 (Interpretation of Code), determines that the use is similar to and no more detrimental than a listed permitted or conditional use. Any use which is prohibited by state and/or federal law is also strictly prohibited.
Recent Action by California Cities
The subject of Data Centers has occupied many City Council Planning Commissions, Council Committee and City Council Agenda throughout America. Southern California cities are very active in putting a pause on Data Center while they amend their codes. Here is a small sampling of some recent actions by area Cities.
City
Action Taken
Calexico
Adopted an official ordinance in September 2026 prohibiting new data centers within city limits over infrastructure and resource concerns.
Coachella
Adopted a permanent, citywide prohibition on large-scale data centers (Ordinance 1231) on August 26, following a previous temporary pause. Normal accessory server rooms and IT equipment remain exempt.
Desert Hot Springs
Extended its–temporary data center moratorium for a nearly two-year duration to evaluate comprehensive land-use, environmental, and utility standards. Extended Moratorium to 2028 El Monte
Adopted a 45-day interim urgency moratorium on March 18 (Urgency Ordinance No. 3063), which was subsequently extended for an additional 10 months and 15 days through February 2027 Fresno
Instructed Staff to begin drafting formal regulation and a City-wide Moratorium.
Monterey Park
Unanimously adopted an ordinance extending its moratorium through January 2027 and placed a permanent citywide prohibition measure on the ballot. The ban was approved by voters in June 2026.
Oakland
Passed a 45-day temporary moratorium on new data center development.
Palm Springs
Approved a 45-day temporary urgency moratorium on August 26, to study zoning definitions and code updates regarding new data centers.
San Francisco
Approved a 45-day temporary urgency moratorium on new data center construction and approvals.
Data center developments are known to create significant concern for communities. These concerns include rising electricity demand and potential ratepayer costs. Some projections suggest data centers could account for up to 12% of U.S. electricity consumption by 2028. Data centers also require significant amounts of water. Long-term groundwater depletion, imported water supply constraints, and ongoing drought conditions are a major concern in water-stressed regions like Southern California.
Finally, it should be noted that the City’s existing zoning code and development standards were adopted before the emergence of data centers and, therefore, do not adequately regulate the intensity, utility demand, operational characteristics, environmental impacts, or cumulative impacts associated with such facilities.
FISCAL IMPACT:
There is no fiscal impact associated with this report.
Prepared by: Laurel Reimer, City Planner
Approved by: Miranda Evans, Community & Economic Development Director Certified as to
availability of funds: Julie Nemes, Finance Director
Approved by: Gilbert Hernandez, Assistant City Manager Approved as to form: James Johnson, City Attorney
Attachment:
Presentation
Land Use Committee Data Center Discussion - Page 2