Why are data centers controversial? Valley experts explain water, power and jobs

Why are data centers controversial? Valley experts explain water, power and jobs

News ClipModesto Bee·Stanislaus County, CA·10/1/2026

The Modesto Bee examines the electricity, water, infrastructure, environmental and economic issues Central Valley communities may face as data center demand grows. Patterson approved a 45-day moratorium, while Riverbank paused development, giving officials time to study potential impacts and determine whether new rules are needed.

environmentalelectricitywatermoratoriumgovernment
Gov: City of Patterson, City of Riverbank, City of Modesto, City of Turlock, Little Hoover Commission, Stanislaus State, University of the Pacific McGeorge School of Law

Central Valley officials are confronting questions about the resource demands and economic benefits of data centers as artificial intelligence and cloud computing increase demand for computing capacity. Experts from Stanislaus State and the University of the Pacific said communities should assess electricity needs, grid upgrade costs, cooling-water consumption, groundwater sustainability, noise, land use, infrastructure and the number of permanent jobs facilities would create.

Patterson approved a 45-day moratorium on data center development in July after a developer expressed interest in a project, and Riverbank paused development in September amid interest in a facility at the former Army ammunition plant. The Little Hoover Commission has separately examined data centers' electricity demands and warned against shifting infrastructure costs to existing utility customers. Experts described moratoriums as temporary tools for studying zoning, resource capacity and potential conditions rather than final decisions on whether development should be allowed.