Water concerns fuel backlash over proposed AI data center in Mount Shasta

Water concerns fuel backlash over proposed AI data center in Mount Shasta

News ClipJefferson Public Radio·Mount Shasta, Siskiyou County, CA·6/26/2026

The city of Mount Shasta is opposing an unnamed company's proposal to build an AI data center at the former Crystal Geyser bottling plant due to significant concerns over water usage. City Manager Todd Juhasz stated the proposal is "dead on arrival" and plans to reject it, citing low return on investment and widespread community backlash. The property is currently in unincorporated Siskiyou County, and the city is exploring annexation to gain control over development.

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Gov: City of Mount Shasta, Siskiyou County Board of Supervisors

An unnamed company has approached the city of Mount Shasta, California, with a proposal to construct an artificial intelligence data center at the former Crystal Geyser bottling plant. However, the proposal faces strong opposition from city officials and the community due to concerns over water consumption.

City Manager Todd Juhasz disclosed the plan during a City Council meeting, stating he intends to inform the company that the city is not interested. He deemed the proposal "dead on arrival," citing widespread community opposition and a lack of significant return on investment for the city, projecting only about 15 long-term jobs and minimal tax revenue. The mayor, Casey Glaubman, reported receiving over 100 emails and observing extensive public outcry on social media.

The proposed site, located in unincorporated Siskiyou County, reportedly includes valuable water rights and a high-producing well, attracting AI data centers known for their high water demands for cooling servers. The city is considering annexing the property to gain more control over future development. Without annexation, the company could present its proposal to the Siskiyou County Board of Supervisors, a scenario Mayor Glaubman stated he personally wishes to avoid.