San Diego City Council

San Diego's City Council voted unanimously to impose a 45-day moratorium on AI data center development, pausing a proposed 400-megawatt facility at the NAVWAR site near Old Town. Manchester Financial Group, selected by the Navy in 2024 to redevelop the 70-acre property, had promised housing and mixed-use development, but emails revealed the firm explored building what could be California's largest data center. The pause, which could extend nearly a year, gives the city time to craft permanent data center regulations. Residents, some in costume, cited concerns over electricity demand, water use, and rising utility costs. The Navy is still conducting an environmental review of the site.

Gov. Gavin Newsom has signed a batch of housing bills aimed at speeding up residential construction, though most are expected to have a modest effect in San Diego, often considered an easier place to build than other parts of California. Among the changes: lower impact fees for accessory dwelling units (ADUs) over 750 square feet (SB 1117); narrower rules easing construction of for-sale townhouses on vacant single-family lots (SB 1116, AB 1751); a requirement for large cities like San Diego to designate high-density "transit-hub districts" allowing taller buildings near transit (AB 2074); and a mandate for cities to provide upfront, non-binding infrastructure fee estimates to developers (SB 1014).

The most consequential local legislation, SB 344 and SB 958, clears environmental and height-related legal hurdles for the Midway Rising megaproject, which could break ground next year. Plans include a 16,000-seat arena and 4,254 apartments — a regional record — with roughly 2,000 designated as subsidized housing, far surpassing the county's current largest affordable complex.