Manchester Financial Group is exploring the possibility of constructing a 400-megawatt artificial intelligence data center at the 70.3-acre Naval Base Point Loma Old Town Campus, sandiegouniontribune.com reported.
Manchester Financial Explores Massive Power Needs for Naval Land
The 400-megawatt proposal is among several options Manchester Financial Group is considering for the site, which currently houses the Naval Information Warfare Systems Command. Ted Eldredge, president and CEO of Manchester Financial Group, contacted San Diego Community Power on November 10, 2025, to inquire about the electricity costs associated with a massive data center.
The development team must build a new facility for the Navy. In exchange, Manchester Financial receives a long-term leasehold on roughly 60 acres to pursue private development. Previous project summaries submitted to the city of San Diego in 2024 outlined plans for 8,900 residential units, two hotels totaling 480 rooms, retail shops, and commercial space.
However, market conditions have shifted, leading the firm to investigate alternative uses that could occupy over 2 million square feet. Eldredge stated that the company has also held discussions regarding universities, hospitals, and defense contractors. He emphasized that the firm is not committed to any specific megawattage and is currently evaluating market viability.
Elected Officials Raise Concerns Over Potential Energy Strains
The revelation that a massive data center is under consideration has drawn opposition from local leaders. San Diego City Councilmember Sean Elo-Rivera, who sits on the board of San Diego Community Power, criticized the proposal and pointed to a lack of communication from agency leadership regarding data center inquiries in May.
The fact that it’s happening on federal property and the city has next to none if not literally no way of regulating what happens there gives me even more concern, because this is happening in the context of a federal regime that is completely tone deaf as it relates to community concerns about data centers,
Elo-Rivera stated.
Broader Debates Surrounding AI Infrastructure and Grid Capacity
The surge in generative intelligence applications, such as OpenAI’s ChatGPT launched in late 2022, has driven a massive demand for hyperscale data centers. These facilities require immense amounts of electricity.
Nico Procus, director of the nonprofit municipal utility Silicon Valley Power in Santa Clara, noted that data centers have historically boosted municipal revenues and lowered customer rates within his 20-square-mile district.
Regulatory scrutiny around data centers is expanding nationwide. In Virginia, Abigail Spanberger signed an executive order proposing legislation to tighten environmental, transparency and energy cost rules. Meanwhile, in Imperial County, a California Superior Court judge ruled on August 31 that a proposed 330-megawatt data center requires an environmental impact report, temporarily halting the project.
Common Questions Regarding the Naval Base Redevelopment
What is the primary obligation of Manchester Financial Group at the NAVWAR site?
The development team is required to construct a new state-of-the-art facility for the Navy before utilizing the remaining acreage for private commercial and residential development under a long-term leasehold.
Why is a data center being considered for the property?
Due to a weakened office market and shifting economic conditions, Manchester Financial is exploring alternative high-value uses that can occupy more than 2 million square feet to ensure the project remains financially viable.
What role does San Diego Community Power play in the discussions?
Manchester Financial executives contacted the energy agency to determine the electricity costs required to power a 400-megawatt facility.
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