Sacramento mayor asks staff to study policies, impacts for data center proposals
Sacramento Mayor Kevin McCarty requested city staff to study potential policies and impacts of data center proposals, including energy, water, and infrastructure concerns. This proactive step comes after reports of Link Logistics pursuing a large data center project in the city, which currently lacks specific zoning for such facilities. The study aims to prepare the city for future data center applications.
Sacramento Mayor Kevin McCarty has directed city staff to conduct a comprehensive study on policies and potential impacts of data center proposals. The request, made during a council meeting, aims to address growing interest and concerns regarding these developments, specifically focusing on energy, water, infrastructure, and neighborhood implications.
The Mayor's action was prompted by a report indicating that Link Logistics, a New York-based industrial real estate firm, has been in discussions with the Sacramento Municipal Utility District (SMUD) about a large-scale data center project, potentially exceeding 50 megawatts. Although the City of Sacramento has not yet received an application for this specific project, Mayor McCarty emphasized the need for preparedness, particularly given that data centers currently lack a defined land use in the city's zoning code.
Simultaneously, state-level legislation is progressing, with Assembly Bills 2619, 2469, and 2383 aiming to impose requirements on data center operators, such as estimating water usage and potentially implementing electricity demand tariffs. SMUD, which has historically powered data centers, is also developing new policies for larger projects due to increased interest.
Link Logistics confirmed ownership of property at Depot Park in Sacramento and stated that any future redevelopment would undergo the city's full entitlement and environmental review process, including community engagement.