Sacramento is now in the data center debate. Here’s what leaders and activists are saying
Sacramento is entering a city-wide debate over data centers following news of a proposed project in South Sacramento by Link Logistics, a New York-based company. Mayor Kevin McCarty has directed city staff to study the impacts of data centers, while local politicians, residents, and environmental groups express significant concerns about noise, utility rates, power grid strain, water usage, and environmental justice. Meanwhile, the business community advocates for data center development to prevent the region from being left behind.
Sacramento, California, is currently embroiled in a debate over data center development following reports of a New York-based company, Link Logistics, proposing a large-scale data center in South Sacramento. The news prompted Sacramento Mayor Kevin McCarty to direct city staff to investigate the potential impacts of data centers within city limits.
Local politicians and residents have voiced strong opposition, citing concerns over noise pollution, increased public utility rates, strain on local power grids, and monopolization of water resources. Councilmember Eric Guerra, whose District 6 would host the proposed project, explicitly stated his opposition to Link Logistics, citing unresolved issues related to air quality, water costs, and utility strain. Flo Cofer, Guerra's opponent for a Sacramento County Board of Supervisors seat, echoed skepticism, urging leaders against hasty decisions driven by industry pressure.
The debate also highlights a divide between environmental advocates and some business leaders. The Sacramento Environmental Justice Coalition and Third Act Sacramento expressed deep concerns about environmental impacts, lack of transparency from the Sacramento Municipality Utilities District (SMUD), and the potential for siting data centers in vulnerable communities. Conversely, John Vignocchi, CEO of Sacramento Region Business Leaders Council, downplayed some environmental fears, emphasizing the economic benefits and the risk of Sacramento being left behind if it doesn't embrace AI technology development.
SMUD, which Link Logistics approached for power, stated it could not share customer information but is developing a "fair and equitable large load policy" for such projects. Concurrently, state-level action is underway, with California State Senator Steve Padilla having authored two bills to study data centers' environmental and utility rate impacts. These bills are currently awaiting Governor Gavin Newsom's signature or veto.