San Diego Todd Gloria signed an executive order directing municipal staff to pursue a temporary moratorium on new data center developments, joining local politicians, labor organizations, and housing advocates who gathered outside City Hall to oppose a possible data center proposed for a 70-acre redevelopment site at the Old Town campus of the Point Loma Naval Base.
Weighing the Energy Demands Against Community Costs
The debate in San Diego centers on a potential project put forward by Manchester Financial Group. Executives have emphasized that a data center is merely one of several options being evaluated for the massive Pacific Highway site. Ted Eldredge, president of the firm, noted to the San Diego Union-Tribune that the company remains uncommitted to the 400-megawatt figure and is simply studying market viability.
That speculative scale has alarmed municipal officials. Joe LaCava, president of the San Diego City Council, stated during Thursday’s rally that the city does not need a resource-heavy facility consuming vast amounts of resources in the middle of an urban center.
The financial anxiety is rooted in recent history. Over the past decade, residential electricity rates across California have surged well above inflation. According to the Public Advocates Office, rates for San Diego Gas & Electric climbed 97% over ten years, while Southern California Edison jumped 101% and Pacific Gas & Electric rose 69%.
Lawmakers in Sacramento have attempted to address the strain through recent legislation, including Senate Bill 886—championed by Senator Padilla—which directs the California Public Utilities Commission to establish rules or rates to regulate grid interconnection for data centers. Yet, local leaders argue state measures do not go far enough.
| Utility Provider | 10-Year Residential Rate Increase |
|---|---|
| Southern California Edison | 101% |
| San Diego Gas & Electric | 97% |
| Pacific Gas & Electric | 69% |
Federal Land Ownership Limits Municipal Control over NAVWAR Redevelopment
Because the NAVWAR redevelopment sits on federal property, municipal authorities lack direct jurisdiction over its land use. City Councilmember Sean Elo-Rivera pointed out to the gathered crowd that the local government cannot halt the proposal independently, urging San Diego’s federal delegation to step in.
San Diego is not alone in its resistance. Poway’s city council recently approved an ordinance banning large, third-party AI data centers citywide, while Escondido extended a local moratorium through August 2027. Energy journalist and author Robert Bryce tracks these municipal pushbacks, estimating that at least 370 communities across the United States have rejected similar developments.
Mayor Gloria’s proposed moratorium will head to the City Council next Monday. The measure establishes a task force of up to 15 stakeholders to evaluate water, electricity, housing, and neighborhood impacts, leaving open the question of how federal military installations will ultimately balance national tech infrastructure goals with local municipal resistance.
