San Diego Data Center Plan Faces Opposition
PHOTO CAPTION: An aerial view shows the Navy's Naval Information Warfare Systems Command Old Town Campus in San Diego on July 1, 2020. A commercial data center is among the redevelopment options being considered for the 70-acre property, prompting calls from lawmakers for dedicated military housing instead. No final development plan has been approved. (Archival U.S. Navy photo by Rick Naystatt)
A proposal to build a massive commercial data center on Navy-owned land in San Diego is drawing opposition from local officials and members of Congress who say the property could instead help address the region's expensive housing market, including the needs of military families.
The potential development involves the Navy's 70.3-acre Old Town Campus, home to Naval Information Warfare Systems Command, or NAVWAR.
The Navy selected Manchester Financial Group and Edgemoor Infrastructure & Real Estate to negotiate a major redevelopment that would replace aging military facilities while allowing private construction on portions of the property.
Earlier concepts included thousands of apartments, but did not designate specific housing units for military families.
Now, the developer has confirmed that a large commercial data center is among the options being considered.
Rep. Scott Peters, whose congressional district includes portions of San Diego, is calling for the project to include dedicated military housing.
The dispute escalated October 29 when four California lawmakers announced plans for legislation that would require local government consultation and approval before a commercial data center could proceed at the site.
No final development plan has been approved.
Congressman Questions Why Military Housing Is Not Included
In an interview published October 29 by Task & Purpose, Peters said active-duty service members frequently struggle to afford housing in San Diego, even with their military housing allowances.
He argued that a large redevelopment involving Navy property should make room for housing specifically reserved for military personnel.
The congressman said he had previously expected residential development to be a major part of the project and was surprised when reports emerged about a possible data center.
Peters and other lawmakers had urged the Navy in 2023 to use the redevelopment as an opportunity to expand affordable housing.
Earlier market analyses considered plans containing approximately 4,400 to 10,000 residential units.
However, the concepts did not establish a guaranteed number of homes for service members.
Peters maintains that dedicated military housing should be a priority as the Navy considers how to use the property.
Military Families Can Face Lengthy Housing Waits
San Diego is one of the country's major military population centers, with Navy and Marine Corps installations across the region.
Military families assigned to the area must often choose between applying for military housing and finding private rentals using their Basic Allowance for Housing.
The Department of Defense's official housing information acknowledges that availability varies considerably by location and the size of the home requested.
Some San Diego military housing communities have waiting times of 18 to 24 months, according to the department's published installation guidance.
Other locations have substantially shorter waiting periods.
In June, KPBS reported on the challenges military families face in the region, including high rents, costly utilities and lengthy waits for homes in desirable neighborhoods.
One family described spending nearly five months in a hotel while waiting for military housing.
The local housing provider, Liberty Military Housing, acknowledged that certain communities continue to have substantial waiting lists.
Those conditions have raised questions about whether a large Navy redevelopment should include homes reserved for military families rather than relying exclusively on the surrounding rental market.
Developer Confirms Data Center Is Being Considered
The Navy's Old Town Campus contains aging facilities that support information warfare, cybersecurity and other military technology missions.
The redevelopment effort is intended to provide modern offices, laboratories, warehouses and other facilities without requiring the Navy to finance every component through traditional military construction funding.
Under the proposed arrangement, a private development partner could receive rights to develop portions of the land in exchange for constructing replacement facilities for NAVWAR.
Manchester Financial Group and Edgemoor were selected as the potential development team in January 2024.
The partnership has explored residential, retail, commercial, industrial and hospitality uses.
But an October investigation by Voice of San Diego revealed that the developer had also explored a commercial data center requiring approximately 400 megawatts of electricity.
Such a facility could represent a substantial new demand on the region's electrical infrastructure.
Ted Eldredge, president and CEO of Manchester Financial Group, confirmed to Task & Purpose that a data center remains among the potential project elements.
He also said the development team continues to contemplate thousands of multifamily homes.
According to Eldredge, discussions with energy providers have been preliminary, with no active negotiations or agreements in place.
The developer has emphasized that the overall proposal remains under consideration.
There is no approved final plan replacing military housing with a data center.
San Diego Votes to Temporarily Halt Data Center Development
Public concern about the project prompted San Diego officials to examine the broader consequences of large commercial data centers.
Opponents raised questions about electricity demand, water consumption, utility rates, land availability and the potential displacement of housing development.
On October 22, Mayor Todd Gloria signed an executive order directing city officials to prepare a temporary moratorium on data center development.
Five days later, on October 27, the City Council unanimously approved a 45-day moratorium.
The measure gives the city time to study potential impacts and develop regulations addressing where and under what conditions data centers should be permitted.
However, the Navy's Old Town Campus is federally owned land.
That means San Diego's local moratorium does not necessarily prevent federal authorities from moving forward with a development on the property.
City officials and members of Congress have acknowledged that the Navy site's federal status creates a separate legal challenge.
Four Lawmakers Announce Plan for Federal Legislation
On October 29, Reps. Sara Jacobs, Scott Peters, Mike Levin and Juan Vargas announced plans to introduce legislation addressing the proposed data center.
The lawmakers want to prevent a commercial data center from moving forward at NAVWAR without consultation and approval from local government.
Jacobs said San Diego residents had expected housing, public amenities and parks from the redevelopment and were now concerned about the possibility of a major data center.
Peters emphasized that the property offers a rare opportunity to construct substantial housing near major roads and transit services.
The congressional proposal would give local officials a greater role in decisions affecting the Navy-owned property.
The lawmakers have announced their intention to introduce the legislation, but it has not been enacted and does not currently prohibit the proposed data center.
The dispute also raises a broader question about how military installations should balance opportunities for private investment against the housing and infrastructure needs of surrounding communities.
Navy Says Redevelopment Remains Under Review
The Navy has not issued a final development decision.
According to an October 8 update on the project's official website, the service is continuing its environmental review under the National Environmental Policy Act.
The Navy is preparing updated environmental studies using more detailed information from the potential development partner.
A revised draft environmental impact statement is expected in 2027.
That document is intended to provide another opportunity for public review and comment before a final environmental decision.
The Navy continues to describe its primary goal as obtaining modern facilities needed to support NAVWAR's military mission.
The developer maintains that housing and other commercial uses remain under consideration alongside the data center concept.
What Happens Next?
The Navy must still complete environmental reviews and determine whether to approve a final redevelopment plan.
San Diego officials are developing potential data center regulations following the October 27 moratorium, while members of Congress are preparing legislation aimed specifically at the NAVWAR property.
For military families struggling with San Diego housing costs, the outcome could determine whether part of the redevelopment provides additional housing opportunities.
But no new military homes have been formally approved, and no planned military housing development has been confirmed as canceled.
The immediate controversy is over how the Navy and its private development partner should use a valuable piece of federal land before those choices become final.
(Source: OAF Nation)
