San Diego Mayor Todd Gloria Signs Executive Order for Data Center Moratorium
San Diego Mayor Todd Gloria signed an executive order on October 22, 2026, directing city staff to advance a temporary moratorium on new data center developments to protect local water supplies, electricity grids, and housing availability. The proposed ban, which stems from a local developer’s early exploration of a 400-megawatt facility at the Old Town Naval Information Warfare Systems Command site, heads to the San Diego City Council for consideration on Monday, October 26, as reported.
If approved by the City Council, the temporary pause will halt new data center construction within city limits while the planning department drafts comprehensive regulations. City departments face a 180-day deadline to bring forward preliminary recommendations, supported by a newly established Data Center Stakeholder Working Group.
San Diego Pursues Temporary Ban on Data Centers
The executive action follows early informational conversations between the San Diego-based Manchester Financial Group and energy providers regarding a potential 400-megawatt data center. That facility would sit on part of the 70-acre NAVWAR site, which is currently slated for redevelopment.
Ted Eldredge, president and CEO of Manchester Financial Group, stated in an official release that the data center was merely one of several initial ideas being explored. Eldredge noted that his development team had held early informational conversations with energy providers to understand feasibility, but emphasized that there are no active negotiations or finalized agreements in place.
The developer’s primary focus for the Old Town Campus redevelopment remains delivering modern facilities for NAVWAR in cooperation with the Navy and community stakeholders. Other potential elements under consideration for the site include retail, commercial, industrial, hospitality, a medical center, a university campus, a defense industry campus, and a life science facility.
Infrastructure Strains Prompt Executive Action
Mayor Gloria pointed to the massive resource footprint of modern digital infrastructure as the primary driver behind the policy shift. Artificial intelligence technologies have triggered a surge in demand for facilities that house intensive computing hardware.
According to the mayoral administration, these operations require substantial electricity for continuous running and cooling, alongside significant water supplies. Without local rules, the rapid expansion risks driving up utility bills, consuming limited land, and impacting housing opportunities.
If completed, a 400-megawatt installation would become the largest data center in California. To address facilities outside local jurisdiction, the executive order also instructs the city’s government affairs team to develop or support state and federal legislation protecting communities from external data center impacts.
City Council Decision Scheduled for Monday
The executive order establishes a temporary Data Center Stakeholder Working Group comprising members appointed by the mayor. This group will draw from technical experts, community advocates, utility and water professionals, housing and land-use specialists, and technology leaders.
The proposed moratorium goes before the San Diego City Council on Monday, October 26, 2026. If the council passes the measure, city staff will have 180 days to deliver preliminary recommendations governing the location, construction, operation, and expansion of future digital infrastructure.