Modesto contacted by data center developer. MID says it aims to protect ratepayers

Modesto contacted by data center developer. MID says it aims to protect ratepayers

News ClipModesto Bee·Modesto, Stanislaus County, CA·7/30/2026

Modesto officials, including Mayor Sue Zwahlen and Councilman Chris Ricci, have been contacted by data center developer NorthPoint Development regarding potential projects in the area. The Modesto Irrigation District is also fielding inquiries and developing policies to manage the energy demands of large data centers, prioritizing existing ratepayers. Meanwhile, the nearby City of Patterson has enacted a 45-day moratorium on data center development.

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Gov: Modesto City Council, Modesto Irrigation District, City of Patterson

The City of Modesto is exploring the implications of data center development after council members, including Councilman Chris Ricci, were lobbied by NorthPoint Development, a data center developer with a Sacramento office. While a specific project location has not been disclosed, Modesto Mayor Sue Zwahlen has agreed to meet with a developer, and city staff are preparing a comprehensive review of the potential positive and negative impacts, including concerns about water, electricity, and tax revenue. Councilman Dave Wright indicated an open mind but emphasized the need for more information, particularly regarding job creation and environmental concerns.

The Modesto Irrigation District (MID) has also received inquiries from data center developers and is actively monitoring energy trends due to the significant demand these facilities place on the grid. MID is in the process of developing new policies for large-load interconnections to ensure that any potential new developments do not adversely affect current customers or the electric system. Developers are required to fund and complete studies assessing their energy demands and system impact.

Public sentiment, as evidenced by comments on Councilman Ricci's Facebook page, shows concerns about water usage and electricity consumption, with some residents expressing apprehension about potential shortages and increased costs for local citizens and agriculture. Addressing similar concerns, the nearby City of Patterson enacted a 45-day moratorium on data center development on July 16, following preliminary inquiries about a potential project.