Frequently Asked Questions Regarding Data Centers in Modesto

What is the official statement from the City regarding data centers?

The City of Modesto is aware of recent discussions regarding the possibility of data centers locating in our community. We want to clarify that data centers are not an allowed land use under the City's Municipal Code.

While the City has received general inquiries from companies about the possibility of developing data centers in Modesto, no applications have been submitted. Because data centers are not an allowable use under the City's Municipal Code, there is no active proposal before the City and no application is under review.

We appreciate hearing from residents and value the community's engagement. We hope this information helps clarify the current situation and provides reassurance to our community.

What does the City of Modesto consider a data center?

While they are not currently in our Municipal code as allowable land use, any applications submitted would require a Municipal Code change and CEQA analysis. However, these large-scale sites are typically:

• Industrial Zoning: Dedicated facilities typically located within designated industrial zones.
• High Electrical Demand: Requires formal utility grid studies to support high-density power draws
• Dedicated Water Needs: Requires expanded water infrastructure far exceeding traditional industrial sites for cooling operations.

What is not considered a data center in the City of Modesto?

• Standard Facility / Co-Location: Integrated within existing commercial structures or shared business spaces.
• Minimal Infrastructure Footprint: Operates within current utility capacity without placing additional strain on the local power grid.
• Low Water Demand: Requires no specialized or expanded water infrastructure beyond standard commercial use.

Does the City's official statement on data centers apply outside City limits in Stanislaus County or neighboring cities?

• The City of Modesto's land use designations only pertain to within city limits. Outside city limits are governed by their respective jurisdictions.

What if a company submits an application for a data center within City limits?

• If an application is submitted, there would have to be a Municipal Code update to define data centers, a full environmental review process, and go to both the Planning Commission and Council for formal discussion and public input.

What is currently planned for 1200 Graphics Drive in Modesto?

• Pepsi will be the tenant for a 215,973 sq ft warehouse at this site.
• There are no other applications for that site.

What is the zoning designation of the property at 1200 Graphics Drive under the City of Modesto Municipal Code?

The property is zoned Heavy Manufacturing and Light Manufacturing, definitions below:

• 10-2.150 - Manufacturing, Heavy. Manufacturing of products from raw or unprocessed materials, where the finished product may be combustible or explosive. Heavy manufacturing may include any establishment or facility using large outdoor structures such as conveyor belt systems, cooling towers, cranes, storage silos, or similar equipment that cannot be integrated into the building design, or those engaging in large scale outdoor storage. Any industrial use that generates noise, odor, vibration, illumination, or airborne particulates that may be offensive or obnoxious adjacent land uses, or that requires a significant amount of on-site hazardous chemical storage, shall be classified under this land use. This use shall include any packaging of the product being manufactured on-site. Light Manufacturing uses are permitted. Examples include, but are not limited to, the production of the following products: asphalt, ceramics, glass, clay, concrete (no rock crushing), gas, metal (including foundries, forge shops, open air welding), oil and grease products, petroleum products, plastics, and vehicles (includes automobiles, boats, and recreation vehicles).
• 10-2.151 - Manufacturing, Light. Manufacturing of products from processed or unprocessed raw materials, where the finished product is non-combustible and non-explosive. Light manufacturing includes product assembling or mixing, where previously processed components or manufactured parts produced on-site or off-site are fitted or blended together to form a product. Light manufacturing shall include any packaging of the product being manufactured on-site or off-site. Light manufacturing may also include any establishment or facility using large unscreened outdoor structures such as conveyor belt systems and storage silos. Light manufacturing uses may produce noise, vibrations, illumination, or airborne particulates perceptible to adjacent land users, which are not offensive or obnoxious. Odors produced on-site shall not have a significant negative effect on other businesses or properties in the area. Examples of packaging include facilities for bottling, canning, wrapping, and boxing of products assembled or manufactured on-site or off-site. Examples of the products include, but are not limited to, beverages, electronic components, food products including meats. Examples of assembling include, but are not limited to, the production of the following: clothes, computer software, electric or electronic components, furniture (where wood is milled off-site), hardware, mechanical components, pharmaceuticals, toys, and small vehicle assembly. Examples of manufacturing include, but are not limited to, the production of the following: apparel products, beverages, candy and other confectionery products, ceramics (small products such as figurines, stoneware, porcelain, wall and floor tiles), computer hardware, cosmetics, dairy products, electronics, food and beverage products, jewelry, leather products, musical instruments, metal products (fabricated) made from semi-finished metals, office and artist materials, paper and cardboard products (converted but excluding burning operations), pharmaceuticals, plastic or resin, rubber products, seeds, signs, sporting goods, textiles, tobacco, toys, and wood products (cabinets, desks, other furniture, lumber but excluding burning operations).

Could the facility at 1200 Graphics Drive qualify under an existing category such as office, communications, research, utility or industrial use?

• No, because industrial facilities of this size require dedicated utility substation upgrades, draw noticeable water for cooling, and introduce industrial noise from HVAC and backup power testing. An environmental assessment would need to be conducted to establish what category this use would be designated as.

Has Modesto's Planning Division issued a written zoning determination stating that the proposed project is not allowed?

• No, there have been no formal zoning verification requests or applications.

Would this proposed project require a conditional-use permit, rezoning or another entitlement rather than being completely prohibited?

• If an application is submitted, there would have to be a municipal code update to define data centers, a full environmental review process, and go to both the Planning Commission and Council for formal discussion and public input.

What are Lumen Technologies and Ayera Technologies?

• Lumen Technologies is a 3,406-square-foot commercial facility at 1224 13th Street, specializing in fiber optics. Officially licensed under Telephone Equipment/Services, this facility plays a key role in local and regional telecommunications infrastructure.
• Ayera Technologies is a 2,200-square-foot commercial facility at 801 10th Street. Ayera delivers managed cloud hosting, web services, and localized ISP solutions tailored for enterprise operations.
• Localized facilities like Ayera and Lumen deliver essential high-speed, low-latency connectivity and hosting tailored directly to regional businesses and public services. They are located in existing buildings or co-located with other businesses. Crucially, they provide this critical digital infrastructure with a minimal physical footprint, integrating seamlessly into existing downtown buildings without straining local power grids or depleting municipal water resources.

For more information, contact:

Sonya Severo
Public Relations and Legislative Affairs Manager
209-497-0075
Email Sonya Severo