Manchester Financial Group is in early-stage discussions to develop a 400-megawatt artificial intelligence data center on a 70-acre site currently occupied by the Naval Information Warfare Systems Command near Old Town, Voice of San Diego reported.
Naval Complex Redevelopment and Early Scope
The data center proposal is part of a broader redevelopment plan for the naval property. That vision includes a new headquarters for the command center, alongside plans for housing, retail, and hotel space.
While the proposed facility would potentially rank as the largest in California—surpassing a 330-megawatt project currently under consideration in Imperial County—no formal approval has been granted. Ted Eldredge, President and CEO of Manchester Financial, stated that the data center is one of several concepts for the site and is not a finalized plan. Company representative Matt Awbrey confirmed that the project remains in the discussion phase.
Grid Capacity and Utility Cost Scrutiny
Discussions regarding the site’s power requirements have drawn scrutiny from local elected officials. Voice of San Diego reported that the developer engaged in preliminary talks with San Diego Gas and Electric (SDG&E) and San Diego Community Power regarding grid capacity before local leaders were briefed on the project.
San Diego City Councilmember Sean Elo-Rivera raised concerns regarding the potential impact on utility costs for residents. “If we’re being told that customers would absorb that cost, it’s incredibly alarming and SDG&E owes a response to the public about it,” Elo-Rivera said. In response to inquiries about the 400-megawatt load, SDG&E officials maintained that they are obligated to upgrade the grid to meet the needs of any new demand, regardless of the source.
Midway Rising Housing Commitments
Separately, the Midway Rising redevelopment project is facing a shift in its affordable housing commitments. City officials had previously required the developer to build 2,000 “net new” affordable housing units at the Sports Arena site. However, the final deal, slated for committee review, allows the developer to count affordable units slated for other projects within a three-mile radius toward their total.
Representatives for the partnership, including Charles Schmid of Chelsea Investment Corp., stated that this flexibility is necessary to make the development economically viable.
Executive Leadership Shift at City Hall
Mayor Todd Gloria appointed Bethany Bezak as the city’s new chief operating officer, filling a vacancy he created in February 2025 when he fired the previous COO and assumed the duties himself. Bezak, who has served on the mayor’s executive team as the chief performance and logistics officer since December 2025, will now oversee daily city operations. Gloria described the appointment as a move toward greater accountability and budget management.
Project Status and Details Overview
What is the current status of the Old Town data center proposal?
The project is in a preliminary discussion phase. Manchester Financial Group representatives have confirmed that no final project has been approved and that the data center is only one of several potential concepts for the 70-acre naval site.
Why are local officials concerned about the proposed data center?
Councilmember Sean Elo-Rivera has questioned whether the existing power grid can handle a 400-megawatt load and has expressed concern that residents could face increased utility costs to fund necessary grid upgrades. SDG&E has stated it will meet the demand as it does for any other major infrastructure project.
The revised agreement removes the "net new" requirement, which previously mandated that the developer build 2,000 new units specifically for the project. The developer is now permitted to absorb affordable housing units initially slated for other projects within a three-mile radius of Midway Rising.
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