California communities enact moratoriums and oppose data center developments
Communities in California, including Patterson and Riverbank, have enacted moratoriums on data center development amidst growing public opposition. Concerns over noise, water, and energy consumption are driving the pushback, even as a developer proposes a new data center in Riverbank with claims of minimal impact.
Across the United States, and particularly in California, communities are increasingly uniting in opposition to data center developments, leading to moratoriums and strong public outcry. In Modesto, 200 residents recently urged city leaders for three hours to reject a data center project that had not even been officially proposed. Following this trend, both Patterson and Riverbank city councils have enacted moratoriums on data centers, despite pleas from firms hired to attract such businesses. This surge in opposition is a relatively new phenomenon, stemming from public awareness about data centers' noise, immense water and energy consumption, and the potential impact on utility bills.
According to Greg C. Wright, a UC Merced economics professor, data centers create few local jobs (dozens compared to hundreds for manufacturing) and can lead to a 2% to 5% rise in nearby home prices without increasing average wages. The perception of 'sneaky' project approvals, such as Amazon's data center in Gilroy which bypassed public meetings, further fuels public distrust. Newsweek also highlighted how nondisclosure agreements (NDAs) contribute to this silence in several states.
In Riverbank, Aemetis, the city's leasing agent for the Riverbank Industrial Complex (RIC), implored leaders not to impose a moratorium. Spartan Data Centers, working with Aemetis, proposed a 60-megawatt data center at RIC, claiming it would be a 'modular, medium-sized computing facility' with minimal impact. They plan to use recycled water from on-site wells and draw electricity directly from Hetch Hetchy hydropower, avoiding local municipal resources. This proposal is presented as a contrast to a past negative experience with bitcoin miner Aquifer, which defaulted on $500,000 in rent and fees owed to Riverbank taxpayers in 2015. Spartan projects a $1 billion investment could generate $10 million annually in new tax revenue.
Broader regional activity includes NorthPoint Development lobbying Modesto council members for a data center. Turlock leaders have publicly denied receiving any data center applications amid social media rumors. The Modesto Irrigation District (MID) held presentations to address customer fears, confirming that only one 'large-load user' has advanced to the stage of paying for impact studies. MID board member Janice Keating criticized the use of 'disingenuous language' like 'large-load users' on agendas, which obscures the discussion of data centers from the public. She also suggested a higher pricing tier for data centers and a ban on NDAs for MID-affiliated individuals.