SMUD Weighs Two Large Data Center Requests
The Sacramento utility received two inquiries from prospective large-load customers, each seeking more than 50 megawatts of capacity.
Updated on Nov. 12, 2026 in Data Centers
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The Sacramento Municipal Utility District held a public meeting Wednesday night on how it would serve large electricity customers. SMUD has received two inquiries from prospective large-load customers, each seeking more than 50 megawatts of power.
Why it matters
Community members raised concerns about energy use, pollution, water consumption and transparency in how large projects are approved. SMUD has longstanding policies intended to keep the costs of serving large customers from being passed to existing ratepayers.
Each inquiry seeks more than 50 megawatts, enough to supply approximately 50,000 homes, compared with SMUD's existing portfolio of 16 data centers. The identities of the two prospective customers and the final capacity they would require have not been disclosed.
The players
Sacramento Municipal Utility District (SMUD)
SMUD is the public electric utility serving the Sacramento region, and it operates 16 data centers of its own.
Link Logistics
Link Logistics is a New York-based real estate company owned by Blackstone Inc. that has owned and operated Depot Park for many years.
The details
SMUD held a public meeting Wednesday night to discuss serving large electricity customers after receiving two inquiries from prospective large-load customers. Sacramento Mayor McCarty called for a review of data center policies on Sept. 15, and SMUD does not make land-use decisions, which fall to local jurisdictions.
Timeline
Sept. 15: Sacramento Mayor McCarty called for review of data center policies.
Wednesday night: SMUD held a public meeting on serving large electricity customers.
Next week: SMUD leadership is scheduled to vote on large-load customer service principles.
Season Trajectory
SMUD's longstanding policies aim to keep the costs of serving large customers from falling on existing ratepayers, and these inquiries test whether those protections can keep pace with rising data center demand. The outcome of next week's vote on large-load service principles will indicate how the utility plans to handle similar requests going forward.
Decisions on large-load service principles could shape how much new data center demand is added to the grid and how costs are allocated among Sacramento-area customers. Residents may see the effects in future rate structures and in local decisions about water and energy use.
The takeaway
Ask your utility how it allocates the costs of new large customers before accepting future rate changes. Staying informed on local data center approvals can help you understand their effect on your bill.
What happens next
SMUD leadership is scheduled to vote next week on its large-load customer service principles.
Further reading
Explore more on data centers and how large-load projects are reshaping regional power planning.
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