As Navy takes heat over San Diego data center pitch, a lawmaker floats military housing

As Navy takes heat over San Diego data center pitch, a lawmaker floats military housing

News ClipTask & Purpose·San Diego County, CA·10/29/2026

The Navy is considering a redevelopment of its 70-plus-acre San Diego campus that could include a data center developed with Manchester Financial Group, prompting public backlash. Rep. Scott Peters is urging the Navy to prioritize military housing, while the San Diego City Council has approved a moratorium on data centers amid concerns about housing, water use, noise and electricity costs.

oppositiongovernmentmoratoriumelectricitywaterenvironmental
Gov: U.S. Navy, Naval Information Warfare Systems Command, San Diego City Council, U.S. House of Representatives

The Navy’s planned redevelopment of a campus operated by Naval Information Warfare Systems Command in San Diego could include a data center as part of a broader private-public development agreement with Manchester Financial Group. The proposal also contemplates thousands of multifamily homes and other commercial uses, but Navy officials and the developer said no final decision has been made and no energy agreements are in place.

Rep. Scott Peters, whose district includes San Diego, is pressing the Navy to include dedicated military housing because of the region’s high housing costs and long waiting lists. Public opposition intensified after the potential data center became known, and the San Diego City Council approved a data center moratorium. Peters also raised concerns about water consumption, noise and electricity costs, while advocating for federal legislation requiring data centers to bear the costs of connecting to and using local power grids.