CRC proposes W. Kern data center with dedicated power, closed-loop cooling

California Resources Corp. (CRC) is advancing plans for a medium-sized data center, dubbed the Golden Valley Technology Campus, near Valley Acres in Kern County, California. The company is submitting a conditional use permit application this week, initiating a two-year environmental review process. CRC emphasizes the project's reduced environmental impact, noting it will utilize 275 megawatts of surplus power from its natural gas-fired Elk Hills Power Plant and a closed-loop, recirculating water system for cooling, contrasting with more water-intensive evaporative systems. This design aims to mitigate local concerns regarding water use, power strain, and noise, which have fueled opposition to other data center developments across the U.S.

The project, which could cost over a billion dollars, plans to employ approximately 1,500 workers during its year-long construction and create up to 250 permanent jobs. While the ultimate hyperscaler tenant is yet to be decided, CRC is partnering with Beacon Data Centers, a 3-year-old Canadian company with 14 other data center projects in North America, to develop the facility. Joseph Shovlin, co-founder of Beacon Data Centers, highlighted the project's on-site power generation and low-thirst recirculated water cooling as key attributes, positioned on an existing industrial site to minimize ecological disruption.

CRC states it is actively working to build support among local stakeholders, including through unspecified payments to a council established by CRC for community investments. The company, already Kern County's largest property tax payer, anticipates the data center will significantly increase its annual tax contribution. Discussions are also underway regarding the potential connection of the Golden Valley project to CRC's nearby carbon dioxide storage facility, which could enable CO2 capture from the Elk Hills plant, although this remains a separate consideration.