The San Diego data center project could reshape the redevelopment of the Navy’s Old Town Campus in California, introducing a major computing facility to a 70-acre federal property near downtown.
Manchester Financial Group is exploring investor interest in the proposal, which could become one of California’s largest data center developments if built. However, the project remains at an early stage, with no final approval, confirmed construction budget or detailed design publicly disclosed.
The proposed facility would occupy land associated with the Naval Information Warfare Systems Command (NAVWAR), which supports the US Navy’s cybersecurity and information warfare missions.
The broader redevelopment aims to replace ageing military facilities while potentially introducing residential, commercial and transportation infrastructure. Consequently, the data center concept raises questions about land allocation, electricity demand and the future mix of development at this strategically located site.
The project’s reported 400MW capacity represents a substantial power requirement. Nevertheless, Manchester has not published a confirmed construction value, tenant agreement or development schedule. Therefore, the project’s financial scale remains uncertain beyond its proposed electrical capacity.
400MW San Diego data center project explores construction options
The development team has explored building the facility in several 100MW phases, potentially adding capacity every six months. This approach could spread construction activity across multiple buildings instead of delivering the entire complex simultaneously. However, the developers have not disclosed a confirmed construction program or secured a customer for the proposed computing capacity.
Manchester Financial Group also approached San Diego Community Power to estimate electricity costs. An October 2025 estimate indicated that power could cost more than $1 million daily at $0.11 per kilowatt-hour. These figures exclude other charges and do not represent a confirmed supply agreement.
400MW San Diego data center project faces infrastructure questions
The proposed capacity could require electricity equivalent to the consumption of approximately 320,000 homes. Consequently, grid connection capacity, energy pricing and backup generation will influence the project’s feasibility. Manchester also requested an engineering study from San Diego Gas & Electric to assess the additional demand.
Water availability presents another consideration because many data centers use water-based cooling systems. Developers have not confirmed the facility’s cooling design, water requirements or renewable energy commitments. They indicated that the eventual hyperscale tenant would help determine its energy sourcing strategy.
The proposal has also attracted concerns about competing land uses. San Diego officials have questioned whether the strategically located property should accommodate housing rather than a large computing facility. Councilmember Sean Elo-Rivera raised concerns about transparency and community involvement in decisions affecting federal land.
The site’s redevelopment process must also address environmental review requirements. The Navy continues working with Manchester/Edgemoor LLC on plans to modernize NAVWAR facilities. Its current schedule anticipates publishing a revised Draft Environmental Impact Statement in 2027. The Navy will subsequently consider public comments before issuing a final environmental statement and Record of Decision.
400MW San Diego data center project awaits approval
Manchester Financial Group has considered several alternatives for the wider redevelopment, including housing, hotels, restaurants, retail, a stadium, a hospital and a university. The data center remains one option rather than an approved construction commitment.
The redevelopment arrangement involves providing modern facilities for NAVWAR in exchange for development rights under a proposed 99-year lease. Nevertheless, the final land-use plan, financing, construction costs and development schedule remain unresolved.
The proposed data center could introduce substantial digital infrastructure to central San Diego. However, its progression depends on financing, power infrastructure, environmental review and decisions about the federal property’s long-term use.
The proposed project highlights the growing demand for large-scale digital infrastructure across the United States. Similarly, Google’s Roanoke County data center project in Virginia could add to this expansion as the company evaluates a potential site at Wood Haven Technology Park. While Manchester Financial Group has pitched a 400MW development at a former Navy site in San Diego, Google’s proposal remains subject to due diligence and further development decisions. Both projects illustrate how developers are exploring suitable sites to accommodate growing data processing and storage needs. Read more about Google’s Roanoke County data center project.
Also read: $4bn West Memphis Data Center Project: Google Adds $600M in Solar, Storage and Grid Upgrades
Project Fact Sheet
Name: Proposed 400MW NAVWAR data center.
Type: Hyperscale data center and potential mixed-use redevelopment.
Location: Naval Information Warfare Systems Command Old Town Campus, San Diego, California, United States.
Site area: Approximately 70 acres; the official Navy redevelopment website identifies 70.3 acres.
Proposed capacity: 400 megawatts.
Estimated construction cost: Undisclosed.
Electricity cost indication: Potentially more than $1 million daily at an estimated rate of $0.11 per kilowatt-hour.
Proposed construction approach: Multiple buildings delivered in 100MW increments, potentially every six months.
Land ownership: US federal government.
Development arrangement: Proposed 99-year lease linked to redevelopment of NAVWAR facilities.
Current status: Exploratory proposal; no final project approval or confirmed tenant.
Environmental approval: Navy review remains underway under the National Environmental Policy Act.
Anticipated environmental milestone: Revised Draft Environmental Impact Statement expected in 2027.
Key infrastructure considerations: Grid capacity, electricity supply, cooling water, backup power and potential renewable energy sourcing.
Project Team
Potential developer: Manchester Financial Group
Selected potential master developer: Manchester/Edgemoor LLC, working with the Navy on the broader Old Town Campus revitalization.
Development partner: Edgemoor Infrastructure and Real Estate, affiliated with Clark Construction.
Landowner and government stakeholder: US Department of the Navy.
Principal site occupant: Naval Information Warfare Systems Command (NAVWAR)
Potential financing contact: Liberty Strategic Capital, which has discussed the proposal with Manchester Financial Group.
Electricity planning and cost estimates: San Diego Community Power, which provided an indicative electricity-cost estimate.
Grid infrastructure assessment: San Diego Gas & Electric, approached for an engineering study.
Environmental review authority: US Department of the Navy, coordinating the federal environmental review process.
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