The Sacramento Municipal Utility District held a public meeting Wednesday night to discuss how it would serve large electricity customers as two potential data center projects enter the feasibility stages and community members raise concerns about energy use, pollution, water consumption and transparency.
SMUD confirmed it has received two inquiries from prospective large-load customers, each seeking more than 50 megawatts of electricity capacity.
According to a SMUD spokesperson, one megawatt of power is enough to supply approximately 1,000 homes. That means each inquiry represents a potential electricity demand equivalent to more than 50,000 homes.
If both projects move forward, they would represent the largest electricity demands among SMUD's 16 data centers, according to the utility.
The inquiries come as communities across the country debate the potential costs and benefits of large data centers, including their demands on electricity, water and local infrastructure.
SMUD says it has longstanding policies and procedures intended to ensure the costs of serving large electricity customers are not passed on to existing ratepayers.
Those principles were the focus of Wednesday night's public meeting. However, SMUD spokesperson Gamaliel Ortiz told CBS News Sacramento the discussion was not centered on any specific projects.
One company that has confirmed early conversations with SMUD is Link Logistics, a New York-based real estate company owned by Blackstone Inc. The company said it has owned and operated Depot Park for many years.
"We regularly evaluate opportunities to make the best long-term use of the property in ways that support jobs and economic growth in the community, and that includes early conversations with SMUD about the site's potential," a Link Logistics spokesperson said in a statement.
The company confirmed it has not submitted an application for a new project.
"Any future proposal would go through the City of Sacramento's full public entitlement and environmental review process, with opportunities for community input, and we look forward to sharing more with the community at that time," the spokesperson added.
SMUD did not confirm the conversations involving Depot Park. In a separate statement, a spokesperson reiterated the utility's policy on large electricity customers.
"It is a longstanding SMUD policy and procedure that costs associated with serving large electrical load customers are paid for by the customer, ensuring these costs are not passed on to existing customers," the spokesperson said.
SMUD does not make land-use decisions. Those decisions fall to local jurisdictions. Any data center of this scale proposed within Sacramento city limits would require approval from city leaders.
During a Sept. 15 City Council meeting, Sacramento Mayor Kevin McCarty called for a review of the city's policies and additional information about how potential data center projects could affect the community.
"I want Sacramento to be prepared if and when a project comes our way. I'm asking our city manager and staff to consider a policy that considers potential impacts on our communities, energy, water, infrastructure, neighborhoods and what safeguards we may need if such a proposal is forwarded to the City of Sacramento for consideration," McCarty said.
SMUD leadership is scheduled to vote next week on the large-load customer service principles discussed Wednesday.
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