# San Diego Reviews AI Data Center Rules

On October 27, 2026, the San Diego City Council unanimously approved an initial 45-day moratorium on developing or expanding AI data centers while city staff prepare recommendations within 180 days. The pause does not directly govern the proposed data center at the federally owned NAVWAR site, where Manchester Financial Group is exploring a facility of up to 400 megawatts. The developer says no negotiations or agreements are in place, and there is no active solicitation; the Navy’s environmental review is ongoing. For contractors, the city’s review may shape future local requirements, while the NAVWAR proposal remains subject to federal decisions and review processes.

- Contractors and developers should account for the moratorium and the city’s 180-day recommendation process when assessing San Diego data-center development plans; the initial pause may be extended.
- For the NAVWAR proposal, evaluate the project as exploratory rather than as an active procurement opportunity, since no agreement or solicitation is in place.
- The city stakeholder process may address power and water demand, grid costs, and community benefits; infrastructure firms should consider how these factors could affect project scope and delivery.

**Jurisdictions:** sled
**Industries:** Information Technology, Construction & Infrastructure
**Topics:** Digital Infrastructure, Physical Infrastructure, Artificial Intelligence
**Published:** October 29, 2026

### Government Entities
- City of San Diego
- San Diego City Council (SDCC)
- Naval Information Warfare Systems Command (NAVWAR)
- U.S. Navy (Navy)

### Vendors
- Manchester Financial Group (Project developer)

### Key Quotes
> San Diego is a city of innovation, and I want us to continue leading in the technologies and jobs of the future.
> — Todd Gloria, Mayor of San Diego

> When Manchester Development came into my office at City Hall earlier, they told me this would be housing. They showed me an entire portfolio of housing and park space and commercial real estate and job creation. That is what they promised the people of this community.
> — Marni Von Wilpert, San Diego City Councilmember

### Sources
- [San Diego considers pause on massive AI data center after pushback](https://thehill.com/policy/technology/6179965-san-diego-data-center-delays) - The Hill
- [California City Considers Banning AI Data Centers After Learning One Could Use as Much Power as 300,000 Homes](https://www.yahoo.com/news/us/articles/california-city-considers-banning-ai-162019249.html) - Yahoo