Data centers ‘will be a big issue’ for CA High-Speed Rail. Officials debating idea
AI-generated summary reviewed by our newsroom.
- Authority plan floats leasing corridor land and power to data centers as an option.
- Board members urged more public discussion as Central Valley residents criticize plan.
- Experts noted data centers use large amounts of water and energy.
Some California High-Speed Rail Authority officials appear to be reading the room when it comes to data centers — though they haven’t said they outright oppose using them for the benefit of the train project.
The rail authority in its latest business plan floated allowing data centers to lease the future train’s land and power source since state law requires it to run without subsidies when it’s fully operational. The agency is working with private investors who could help develop the train’s corridor and it’s looking for others who could help develop a utility-grade power generation system.
Those partners will also be tasked with helping the agency commercialize those assets and could officially pitch leasing resources for data centers as part of a development deal with the rail authority.
But rail authority board members on Wednesday cautioned staff about shaping a deal with private investors that overwhelmingly depends on data centers, which are controversial because of their use of massive amounts of water and energy. They also suggested ample public discussions about data centers are necessary before a decision is made on a deal that includes them.
“Trust me,” said Henry Perea, a board member from Fresno, “it’s going to be a big issue for folks out there in the community. We need to be ready to respond to it.”
Experts warn about data center impacts, backlash growing against them
Data centers house the computer systems that support modern digital operations. Their proponents tout economic benefits, including tax revenue and jobs, while opponents point out they require mass amounts of energy to operate and water for cooling.
Experts with the nonprofit Union of Concerned Scientists said Tuesday during an online educational event that data centers have also been found to increase local temperatures, noise pollution and energy rates for residents.
“The pollution is mostly local, but the profits are not,” said Pablo Ortiz, a water scientist and director with the organization’s Office of Science and Innovation.
Data show that environmental scientists are not the only ones who are concerned. Results from a Gallup survey conducted in March show 70% of Americans oppose the construction of data centers in their communities.
That opposition has shown in the Central Valley, where residents who support high-speed rail have started criticizing the rail authority’s idea to use data centers for extra revenue.
“We must not let the language of opportunity overshadow the environmental burden,” Norma Cardona, of Merced, said during public comment at the rail authority’s June 1 board meeting.
Cardona’s concerns over data centers echoed several other public comments at that meeting.
Deal full of data centers would be ‘a problem,’ HSRA board member says
During Wednesday’s meeting, rail authority board member Jason Elliott questioned how much the board will be able to help shape a deal with private investors before they have to make a decision.
He said he did not want to give staff the go-ahead to work on a project list with investors and then return to the board — after minimal policy discussions — with a “this is what it is, take it or leave it” deal full of data centers.
“I’m going to have a problem with that,” he said.
Rail Authority CEO Ian Choudri said his team would debrief the board on what a proposed deal looks like once it’s been crafted with private partners.
Perea, the board member from Fresno, said he would like the rail authority to publicly discuss data centers further — either at a board meeting or during workshops where community members are invited.
“I don’t necessarily have a problem with data centers,” he said, “but I think we owe the public a very strong presentation of what a data center is and isn’t.”
Perea told The Fresno Bee on Thursday he thinks recent public comments against data centers may be a result of miscommunication between the rail authority and community members. He reiterated that, currently, data centers are only an idea.
This story was originally published June 25, 2026 at 4:08 PM with the headline "Data centers ‘will be a big issue’ for CA High-Speed Rail. Officials debating idea."
