(SACRAMENTO, Calif.) — A potential large data center in Sacramento drew calls for greater transparency during the Sacramento City Council's Sept. 15 meeting, with a public commenter warning that the project could have significant energy and environmental impacts.
SMUD has since confirmed that four large electrical-load projects are currently in its review queue, including interest from data centers. The utility said the inquiries are in early feasibility stages and declined to identify the potential projects or customers, citing customer privacy.
Abridged by PBS KVIE reported Sept. 15 that Link Logistics, a subsidiary of Blackstone Inc., is pursuing a data center project in an industrial area of southeastern Sacramento. The report said company representatives had been in discussions with SMUD since February and that the project would eventually require city entitlements and approvals. Abridged reported that the proposed project is expected to be a “large load” exceeding 50 megawatts, although SMUD has not disclosed its exact proposed size.
Abridged also reported that SMUD had worked with Link Logistics on potential funding for electrical-grid improvements and received $250,000 from the company for a feasibility study. The report also found that SMUD staff worked with Link Logistics on a federal grant application seeking $122.7 million for grid improvements, with $62.6 million in matching funds proposed from the developer. SMUD said any grant funding would support infrastructure improvements intended to benefit the broader system.
SMUD’s fact sheet states two large electrical-load inquiries are in the early feasibility stage, each exceeding 50 megawatts, while about 16 data centers currently operate in its service area.
David Wright, who identified himself at the Sept. 15 meeting as a member of 350 Sacramento and its SMUD Watch committee, told council members that a large data center could eventually come before the city.
"I wonder how many of you saw the story this morning about a very large data center apparently within the jurisdiction of Sacramento City," Wright said.
Wright questioned how much information was available to the public and city officials about the potential project and called for greater transparency.
"These things are happening in near complete secrecy on a local level," he said.
He also raised concerns about the project's potential energy and water use, heat, noise, pollution and carbon emissions.
Wright told the council the project "would blow up the SMUD Zero Carbon Plan by 2030."
SMUD has not said that the projects under review would prevent the utility from meeting its 2030 clean-energy goals.
Instead, SMUD is developing a policy for large electrical loads above 50 megawatts. The utility says the policy will ensure costs associated with large-load projects and related grid upgrades are assigned fairly to those customers rather than shifted to existing customers.
SMUD has not yet released the policy or specified which infrastructure costs large customers would be responsible for.
The potential new demand comes as SMUD prepares its next Integrated Resource Plan. Its 2021 Zero Carbon Plan projected 3,201 megawatts of peak demand in 2030 and called for resources equal to forecast peak demand plus a 15 percent planning reserve margin.
SMUD says it will kick off its next Integrated Resource Plan process in late October, with the updated plan expected to go before the SMUD Board for approval in early 2027 following public outreach.
The issue also comes as SMUD works toward its commitment to eliminate fossil fuels from its electricity production by 2030.
Abridged reported that the project would ultimately require approval from the city of Sacramento and would be subject to environmental review under the California Environmental Quality Act.
SMUD also emphasized that it does not approve data centers or make local land-use decisions. Once a project is approved, SMUD says it is obligated to provide electric service while maintaining a reliable and affordable grid.
For Sacramento, the issue could return to the City Council if the proposed data center or another large electrical-load project ultimately seeks city entitlements.
For now, SMUD says the projects remain in its review process as it develops its large-load policy and begins its next long-term resource plan.
This 65,000-square-foot data center at McClellan Park has 8 megawatts of critical power and is served by the Sacramento Municipal Utility District. Photo by Sarah Denos/OpGov.news.
If you’d like to add or correct anything in this report, feel free to reach out to me or leave a comment below. Submit Sacramento County tips and story ideas to Sarah Denos at sarahkdenos@gmail.com.
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