The facilities’ drive heavy electricity demands, water used for cooling, backup-generator emissions, noise, utility costs, and the level of public scrutiny projects receive.

California officials are examining how rapid data center growth could affect the electrical grid and ratepayers as the facilities’ share of peak electricity demand is projected to rise substantially through 2040, according to reports.

The Oakland debate comes amid growing scrutiny of data centers throughout California.

Residents and environmental groups have questioned how the facilities could affect electricity rates, water supplies, air quality, and surrounding neighborhoods, while also calling for greater disclosure of their resource use.

A 2026 California study found that publicly available information about data centers’ water consumption and cooling systems was often missing, inconsistent, or unclear.