What is (and isn’t) happening with data centers in the Sacramento region
The Sacramento region is unlikely to become a hyperscale data center hub, despite increasing interest from tech companies. Local leaders and environmental groups express concerns about energy and water use, while cities like Rancho Cordova see opportunities for smaller, "enterprise" scale data centers. SMUD is currently reviewing four potential data center projects, including one over 50 megawatts.
The Sacramento region is seeing increased interest from tech companies for data center development, but local leaders and environmental groups express reservations about large-scale facilities. Barry Broome, CEO of the Greater Sacramento Economic Council, noted "tens of billions" in potential capital investment but cited concerns about high energy and water consumption and limited job creation. Environmental executive Katie McCammon of 350 Sacramento described data centers as a "virus," highlighting a perceived lack of protective policies.
The City of Roseville, for example, refuted rumors of a hyperscale data center, stating its electric grid cannot support such a facility. In contrast, Rancho Cordova City Manager Micah Runner expressed openness to smaller-scale data centers (20-50 MW range), viewing them as an economic opportunity, and highlighted a $5 million contract with Nvidia for AI and robotics workforce development.
The Sacramento Municipal Utility District (SMUD) is actively evaluating four data center "inquiries," including one project exceeding 50 megawatts and three others over 20 megawatts. Tracy Carlson, SMUD's director of customer success, stated a transmission study for the largest project is underway. SMUD anticipates growth, but not on the scale seen in Silicon Valley, with Carlson predicting the region won't experience "huge growth" in data center electricity load.
Existing operations include NTT Data Centers' 52.7-megawatt campus in Sacramento and Prime Data Centers' 44-megawatt campus (including an 18 MW expansion) near McClellan Airport. Bruno Berti, Senior VP at NTT Data Centers, noted Sacramento's historical appeal due to seismic safety and proximity to the Bay Area, and addressed public perception, advocating for greater transparency from data center operators.