Markets / Silicon Valley
C&W 2026 Americas · Primary #10 · updated 2026-11-05
Silicon Valley
CEQA review now applies to every new data center from 2027 and cost-causation is in statute. Power is tight and expensive. Inventory is valuable, but new supply will be slow.
coolingGrid: Silicon Valley Power (Santa Clara muni), PG&E (CAISO)
CBRE H1 2026: 509.2 MW inventory [Cushman & Wakefield, 2026 Global Data Center Market Comparison (Americas rankings) (2026-05); CBRE press release: demand continues to outpace supply (H1 2026 market table) (2026-08)]
Power and the queue
- PG&E reports a 12.7 GW data center pipeline and is courting smaller loads. [Utility Dive: PG&E says it has 12.7 GW in data center pipeline as it courts smaller loads (2026)]
- Silicon Valley Power: data centers already use about 55% of SVP's power, and peak is projected to rise from ~740 MW to ~1.3 GW within 5 to 10 years.uncertain [APPA: Silicon Valley Power's Nico Procos details strategies tied to data centers (2026-11-05)]
- CAISO's board advanced flexible interim large-load interconnection (Oct 28, 2026), to be filed at FERC by Nov 16. Transmission owners would study load interconnections on a 60-90 day clock. [CAISO: Board advances new procedures for connecting large loads quickly and reliably (2026-10-28)]
Notable projects owners where public
No verified public item yet. This is a gap we are working on.
Regulatory posture incentives, moratoria, zoning, water, large-load rules
- Sep 21, 2026: seven state data center laws signed. SB 887 removes CEQA categorical exemptions (effective Jan 1, 2027). SB 886, SB 1168, and AB 2383 cover rates and cost allocation. AB 1577, AB 2469, and AB 2619 cover reporting and water. [Governor of California: Newsom signs most comprehensive data center laws in the nation (2026-09-21); California Legislature: SB-887 bill text (2026-09-21)]
- Elsewhere in California: San Diego adopted a 45-day pause (Oct 2026), and Alhambra (LA County) voters banned data centers on Nov 3. [Programs.com: Data Center Moratoriums by State tracker (2026) (2026-11-05); DCD: Local data center moratoria, limits, and restrictions voted in across the US (2026-11-04)]
Pending legislation and actions 8 items
| Date | Jurisdiction | Item | Status | Impact | Source |
|---|---|---|---|---|---|
| 2026-10-28 | CAISO utility | CAISO large-load interconnection proposal (to FERC by Nov 16) Flexible interim interconnection lets large loads connect before network upgrades finish, under enforceable flexibility. Transmission owners would study load interconnections on a 60-90 day clock. | pending | medium | [CAISO: Board advances new procedures for connecting large loads quickly and reliably (2026-10-28)] |
| 2026-07-02 | California state | AB1577 (2025-2026) Would require monthly reporting to CEC on data center location, floor area, electrical capacity, water and energy consumption, PUE, WUE, onsite generation, generator fuel, procurement, and noise; local agencies would receive data at permitting stage. | pending | low | [Bill Status - AB-1577 Data centers: reporting.] |
| 2026-07-02 | California state | AB2619 (2025-2026) Would revive and expand water-use reporting for data centers and require DWR/CEC guidance on water-efficient data center practices. | pending | low | [Bill Status - AB-2619 Water resources: data centers.] |
| 2026-06-29 | California state | SB886 (2025-2026) California Technology Innovation and Ratepayer Protection Act; would require CPUC tariff for participating data center customers, cost responsibility for transmission upgrades, early termination fees, clean-energy procurement, demand response participation, an | pending | low | [Bill Status - SB-886 California Technology Innovation and Ratepayer Protection Act.] |
| 2026-06-29 | California state | SB887 (2025-2026) Would bar CEQA categorical exemptions for data center projects and allow qualifying data centers to seek environmental leadership development project streamlining if they meet conditions for energy, water, infrastructure costs, labor, and community benefits. | pending | low | [Bill Status - SB-887 California Environmental Quality Act: environmental leadership develo] |
| 2026-05-14 | California state | AB2170 (2025-2026) Broader CEQA bill affecting industrial facilities near overburdened communities; would add notice, hearing, and translation duties and may affect data center siting in industrial areas. | pending | low | [Bill Status - AB-2170 California Environmental Quality Act: overburdened communities: noti] |
| 2026-05-14 | California state | SB978 (2025-2026) Would regulate large-scale energy users/data centers through labor and electricity-rate provisions; LA County motion describes a separate energy rate class, clean backup generation, reporting, and local workforce requirements. | pending | low | [Bill Status - SB-978 Data centers: labor: electricity rates.] |
| 2025-08-29 | California state | AB222 (2025-2026) Would require data center power usage effectiveness reporting and cost-shift assessment in energy planning. | pending | low | [Bill Status - AB-222 Data centers: power usage effectiveness: cost shifts.] |
In force / enacted 9 items
| Date | Jurisdiction | Item | Status | Impact | Source |
|---|---|---|---|---|---|
| 2026-09-21 | California state | SB 887 (Ch. 439, 2026): CEQA applies to data centers Removes CEQA categorical exemptions for data center development and operation, effective Jan 1, 2027. Streamlined judicial review only for projects that meet energy, water and grid-cost conditions. | enacted | high | [Governor of California: Newsom signs most comprehensive data center laws in the nation (2026-09-21)] |
| 2026-09-21 | California state | SB 886: California Technology Innovation and Ratepayer Protection Act Part of the Sep 21 package. Data centers pay their share of grid costs, with no shift to other customers. | enacted | high | [Governor of California: Newsom signs most comprehensive data center laws in the nation (2026-09-21)] |
| 2026-08-26 | Morgan Hill city | Interim urgency ordinance (Govt. Code 65858) blocking new data center and grid-scale BESS applications Duration: 45-day interim urgency ordinance; extendable in two phases up to two years total | in force | high | [https://morganhilltimes.com/morgan-hill-declares-moratorium-on-data-centers-battery-storag] |
| 2026-09-21 | California state | SB 1168: data centers, rate structures Part of the Sep 21 package. Covers data center rate structures. | enacted | medium | [Governor of California: Newsom signs most comprehensive data center laws in the nation (2026-09-21)] |
| 2026-09-21 | California state | AB 2383: electricity, data centers Part of the Sep 21 package. Covers data center electricity requirements. | enacted | medium | [Governor of California: Newsom signs most comprehensive data center laws in the nation (2026-09-21)] |
| 2026-09-21 | California state | AB 1577: data centers, reporting Part of the Sep 21 package. Energy and water reporting. | enacted | medium | [Governor of California: Newsom signs most comprehensive data center laws in the nation (2026-09-21)] |
| 2026-09-21 | California state | AB 2469: data centers, water use disclosures Part of the Sep 21 package. Water supply and use disclosures to local agencies. | enacted | medium | [Governor of California: Newsom signs most comprehensive data center laws in the nation (2026-09-21)] |
| 2026-09-21 | California state | AB 2619: water resources, data centers Part of the Sep 21 package. Data centers pay for any water upgrades they require. | enacted | medium | [Governor of California: Newsom signs most comprehensive data center laws in the nation (2026-09-21)] |
| 2025-10-11 | California state | SB57 (2025-2026) Requires CPUC report to the Legislature by 2027-01-01 on whether new data center loads shift electrical costs to other customers; repeals 2031-01-01. | enacted | medium | [Bill Status - SB-57 Electrical corporations: data centers: report.] |
Pricing & supply snapshot directional
MW Desk estimate / directional range, Q4 2026
Asking-rate bands below are MW Desk directional estimates in USD per kW-month. They are rounded ranges, not quoted rates, and they go stale quickly.
- Retail colo (roughly 0–250 kW): $190–435/kW-mo
- Wholesale (roughly 250 kW–4 MW): $135–305/kW-mo
- Large / hyperscale blocks (roughly 4 MW+): $120–235/kW-mo
- Vacancy band: roughly 2–4% (tight)
- Commissioned inventory (directional): ~0.7–1.0 GW
- Available power (directional): ~10–55 MW
- Under construction: ~20–130 MW
- Planned pipeline: ~0.5–1.0 GW
- Absorption: modest positive absorption
- Power / timing: Near-term wholesale blocks are limited; most near-term MW is spoken for or pre-leased.
Uses Northern California lease bands (Bay Area / NorCal colo).
Indicative only. Ranges are rounded and adjusted directional estimates, not quoted asking rates or a survey. Confirm with brokers and operators before acting. Source data ages quickly.
TJ field notes
Coming soon: TJ's on-the-ground notes on this market. Expect what the queue really looks like, which sites can actually get power, and what the brokers aren't saying.
Slot reserved for TJ's detailed market report.