San Francisco Passes Data Center Moratorium in Hometown of AI

San Francisco, home to some of the world’s most valuable artificial-intelligence companies, is temporarily banning new data centers within its borders.

The city’s Board of Supervisors unanimously approved a 45-day moratorium Tuesday, joining a growing national backlash against the facilities underpinning the AI boom. The pause, which took effect immediately, can be extended for roughly two years, as officials consider more permanent restrictions.

Home to OpenAI and Anthropic PBC, San Francisco doesn’t have a comprehensive tally of its data centers. The city joins communities elsewhere in the US — including New York state — that have moved to restrict data center development amid concerns about water consumption, electricity costs and environmental impacts.

The San Francisco measure was co-sponsored by Supervisor Connie Chan, who is running to succeed Nancy Pelosi in Congress.

The ordinance’s sponsors singled out a specific development in the city’s Bayview-Hunters Point neighborhood, which is also home to other data center facilities. The area is “already overburdened with air pollution and environmental justice concerns,” according to the sponsors.