Opinion: Sacramento Region Should Embrace Data Center Development Due to Economic Benefits
An opinion piece argues that California's local governments and residents exhibit hypocrisy by opposing data center development despite their reliance on digital services. The author highlights the economic benefits, such as tax revenue and lower electricity costs in the Sacramento region, and advocates for negotiation over bans. The piece uses Woodland as an example of local opposition.
Matt Rexroad, an attorney and political consultant, argues in the Sacramento Bee against the prevalent "not in my backyard" sentiment towards data centers in California. He highlights the hypocrisy of residents and local governments opposing the essential infrastructure that powers modern digital services, citing local opposition in Woodland over concerns about traffic, noise, water usage, and aesthetics.
Rexroad emphasizes the unique economic advantage held by the Sacramento and Placer counties, where municipal utility providers like SMUD and Roseville Electric offer significantly cheaper electricity rates compared to PG&E territory. This cost difference makes the region attractive for tech companies considering multi-billion dollar investments, unlike areas priced out by high power costs.
Drawing parallels to Northern Virginia's Loudoun and Prince William counties, Rexroad notes how proactive local officials there have leveraged data center development to generate hundreds of millions in tax revenue. This revenue, he argues, has enabled reduced residential property taxes and fully funded public services.
He concludes that data centers are ideal municipal neighbors, contributing substantial tax revenue with minimal impact on public services, traffic, or emergency calls. Rexroad urges California localities to abandon bans and moratoriums, instead advocating for strategic negotiations with developers to capitalize on a generational economic opportunity and maintain the state's technological leadership.