Modesto Irrigation District board member Janice Keating urged district leaders Tuesday to open a formal discussion about potential local impacts of data centers, citing concerns over electric rates and the possible use of treated Tuolumne River water to cool large computing facilities.
Board member calls for action
Keating, who attended the meeting remotely, told fellow board members the conversation was necessary given recent community attention after a data center developer reportedly contacted City Council members. "
Now it's exploding and we need to deal with it,"she said, according to board meeting remarks.
District staff said the item will be placed on a future agenda for further review. Keating suggested that a review by MID should include consideration of steps the utility might take to protect customers from potential electric rate increases frequently associated with heavy data center loads.
Concerns over water and land use
Keating also pointed to water as a potential pressure point. MID provides treated Tuolumne River water to supplement Modesto's well system, and large data centers often require significant chilled-water or evaporative cooling, which can increase municipal water demand. Keating did not offer specific estimates but framed the issue as one requiring proactive planning by the district.
The possible development has already prompted heated public reaction. Councilmember Chris Ricci said in social media posts around July 29 that he received an inquiry from NorthPoint Development about a potential data center at the former FMC plant site on Graphics Drive, near Kansas Avenue and Highway 99. Ricci said replies to his posts were overwhelmingly opposed to data centers in the city.
City officials have emphasized that, to date, no formal proposals have been submitted. In an official statement, the city said it has received inquiries but is not considering any completed project proposals. Any future proposal would be subject to a full environmental review and would require Planning Commission and City Council hearings.
Site details and developer background
Commercial real estate listings identify the parcel in question — a 22-acre site at 1200 Graphics Drive listed as the North Modesto Industrial Park. Marketing materials included an illustration of a potential 244,000-square-foot building adjacent to an existing distribution warehouse.
NorthPoint Development, the firm named in the outreach to city officials, has expanded into data center projects and lists 37 sites in 17 states on its website. The commercial listing for the property was posted by CBRE, a Dallas-based real estate services firm that manages global listings.
| Detail | Reported figure |
|---|---|
| Parcel size | 22 acres |
| Illustrated building footprint | 244,000 sq. ft. |
| NorthPoint Development footprint | 37 sites in 17 states |
Regulatory and community hurdles
Current Modesto city zoning does not list data centers as an allowed land use, a separate constraint that could delay or prevent a proposal from advancing without code changes. City staff reiterated that any proposal would require environmental review — a process that could examine air quality, water use, traffic and other community impacts.
At the MID meeting, Keating framed the utility's potential role as protective. She said the district should evaluate strategies to shield ratepayers from cost impacts and to ensure water resources are managed in the public interest if a proposal moves forward. The specifics of such an evaluation — including timelines or technical studies — were not detailed in Tuesday's discussion.
- MID will place the data center matter on a future agenda.
- City of Modesto says no formal data center proposals have been submitted.
- Public reaction to inquiries has been largely opposed, according to social media responses to a council member.
As Modesto officials weigh next steps, the intersection of local water rights, electricity capacity and zoning rules will shape whether a data center can proceed at the Graphics Drive site or elsewhere in the city. Residents and stakeholders can expect additional public discussion at upcoming MID and city hearings once staff schedules the item for formal consideration.
