Company eyes ‘large load’ data center in Sacramento that could be region’s biggest

Link Logistics, a subsidiary of Blackstone Inc. and a major warehouse real estate company, is proposing a substantial data center project in an industrial area of southeastern Sacramento, California. The proposed "large load" facility would exceed 50 megawatts, potentially making it the largest data center in the four-county Sacramento region.

Employees from Link Logistics have been in communication with the Sacramento Municipal Utility District (SMUD) since February and with Sacramento city officials since April, advocating for support for the entitlement process. The project involves redeveloping older structures in the city's District 6, likely within Depot Park, which currently houses a solar farm.

The initiative faces challenges, as Councilmember Eric Guerra, who represents District 6, has stated his opposition, asserting that "Data centers are not allowed in the city of Sacramento." He emphasized that he would oppose any project that doesn't provide a direct benefit and safeguards for residents.

SMUD has collaborated with Link Logistics on potential electrical grid improvements and received $250,000 for a feasibility study. The two entities also jointly applied for $122.7 million in federal funding from the U.S. Department of Energy, with $62.6 million in matching funds from the developer, to modernize grid infrastructure. SMUD has noted a significant increase in data center inquiries due to the AI boom, attracted by the utility's low energy rates. The city of Sacramento would ultimately approve the project, which would also undergo environmental review under the California Environmental Quality Act. As of mid-July, SMUD had four large-load projects in its pipeline, including this one, and the project backers hope for an operational date by early 2029.