Efficiency study recommends Redding as ‘Data Center Hub’
An efficiency study recommends Redding, California, position itself as a "Northern California Data Center Hub" to attract significant private capital investment. The recommendation, to be presented to the City Council, acknowledges potential public pushback and legal action due to concerns over water, electricity, and noise, mirroring broader statewide opposition to data center developments.
Circle 6 Consulting has completed an efficiency study for the city of Redding, California, recommending the city strategically position itself as a "Northern California Data Center Hub." This move, detailed in the consulting firm's 83-slide presentation, aims to capitalize on West Coast demand for AI, cloud, and high-density computing infrastructure, potentially attracting over $750 million in private capital investment and generating millions in annual revenue through property taxes and utility fees. The firm suggests the Stillwater Business Park as a potential site for development.
The The recommendation, which extends beyond the consultant's original contract to analyze city finances, is scheduled for presentation at an upcoming Redding City Council meeting, where no immediate action is expected. This proposal emerges amidst significant public opposition to data centers across California and the nation, driven by concerns over substantial demands on local water resources, potential strain on electrical grids, increased utility bills, and noise pollution. The article notes that a similar inquiry in nearby Mount Shasta this past summer led to considerable public concern and even threats against city staff.
The study acknowledges the likelihood of public pushback and potential legal challenges if the council decides to pursue data center development. Beyond the data center proposal, Circle 6 also recommended Redding establish itself as a fiber aggregation hub, create an Enhanced Infrastructure Financing District near the Oasis Road and I-5 interchange, and implement changes to the fire department's dispatch services and engine use to achieve cost savings and generate revenue.