California Company Proposes Data Center Campus in Elk Hills Oil Field
California Resources Corporation (CRC) and Beacon are proposing a 600,000-square-foot data center campus in Kern County's Elk Hills oil field, aiming to use on-site natural gas power and water-efficient cooling. The project seeks to avoid typical data center backlash by repurposing an industrial site and utilizing excess energy capacity. However, environmental groups like Earthjustice are disputing its claims of "responsible development" due to fossil fuel reliance and potential pollution increases.
California Resources Corporation (CRC), the state's largest oil company, in partnership with data center developer Beacon, has unveiled plans for a 600,000-square-foot data center campus within the Elk Hills oil field in California's Central Valley, Kern County. The proposed "Golden Valley Technology Hub" aims to mitigate common public opposition to data centers by leveraging an existing industrial site, located over a mile from residential areas, and utilizing a 550-megawatt natural gas power plant already on-site, which currently runs below capacity.
CRC's chief sustainability officer, Chris Gould, framed the project as "responsible development," emphasizing job creation, tax revenue for Kern County, and the use of a water-efficient closed-loop cooling system. The project is expected to undergo a year-long environmental review and has held community meetings with residents of nearby Taft and Buttonwillow, promising financial support for local groups and infrastructure.
Environmental groups, including Earthjustice, have voiced strong opposition, disputing CRC's "responsible development" claims. Nina Robertson, a deputy managing attorney at Earthjustice, argued that powering data centers with fossil fuels in California, a state making strides in renewable energy, is a step backward and will exacerbate poor air quality in the region. Earthjustice and other groups have also previously sued Kern County over its approval of a related carbon capture project by CRC, with litigation ongoing. Governor Gavin Newsom's office stated that decisions regarding the data center project should be left to Kern County.
The project highlights a growing trend of data center developers considering locations in or near active and declining oil and gas fields, particularly in states like Texas and Pennsylvania, due to their remote locations and ready access to power infrastructure.