Concerns Resurface in District 4, But City Staff Say Proposed New York Drive Project Is Not a Data Center

Councilmember Gene Masuda pressed city staff Tuesday on a proposed development along New York Drive that has generated talk in his district as a possible data center, but a deputy planning director told the Legislative Policy Committee the project does not meet the city’s definition of a data center. 

“I’m concerned about a data center that was supposed to be proposed for New York Drive, and I’d like to hear more about it because there’s a lot of talk in my district about it,” Masuda said during the committee’s April 7 meeting, noting the recent rejection of a data center proposal in neighboring Monterey Park. 

Deputy Planning Director Jason Mikaelian told the committee that staff had worked with the Economic Development Department to evaluate the project and determined it falls under research and development and office use, rather than data center classification. 

The exchange came as the committee received a state legislative update from Sacramento lobbyist Kyra Emmanuels Ross, who reported that roughly nine data center bills are moving through the Legislature with varying approaches to regulation. 

Committee Chair Steve Madison flagged the issue as one of strong local interest, citing concerns about grid reliability and the prudent use of local real estate. 

Mikaelian said planning staff had recently presented on data centers to the Housing, Homelessness and Planning Committee and that the Municipal Services Committee had also examined the topic from a utility consumption standpoint, indicating a coordinated city review of the emerging land-use issue. 

On the federal side, the committee’s Washington advocate Chris Giglio noted that President Trump has issued an executive order on artificial intelligence that asks Congress to preempt state and local regulation over AI, which Giglio said could extend to local zoning authority over data centers. 

Giglio told the committee he was not confident Congress has the votes to act on the proposal but cautioned that the issue would be discussed extensively in the months ahead. 

Public commenter Yadi urged the city to support several state bills addressing data center oversight and called for a formal civic body to give residents a voice on technology, artificial intelligence, and privacy issues affecting the community. 

The committee, which also includes Vice Mayor Jess Rivas, took no formal action on data centers but signaled it would continue monitoring both state and federal development