Manchester Financial Explores 400 MW Data Center at NAVWAR Site

Key Takeaways

• Manchester Financial is considering a 400 MW data center on roughly 70 acres of the federal NAVWAR property near Old Town, but no final project has been approved.
• The facility’s potential electricity demand, comparable to roughly 320,000 homes, raises questions about grid upgrades, energy sourcing and costs.
• Housing, water use, backup generation and public disclosure could become central issues as San Diego evaluates the concept.

Manchester Financial is exploring a substantial change to the possible redevelopment of the federal NAVWAR site near San Diego’s Old Town: allocating about 70 acres to a data center that could eventually consume 400 megawatts of power. The concept remains preliminary, and no final project has been approved, according to Voice of San Diego.

The scale is the immediate business story. At full capacity, a 400 MW facility could use electricity comparable to roughly 320,000 homes. At an assumed rate of $0.11 per kilowatt-hour, operating continuously at that load would produce an electricity bill of more than $1 million per day. Those figures make the proposal much more than a real estate decision. It would also be a long-term infrastructure commitment involving San Diego Gas & Electric’s grid, power procurement and potentially new generation or transmission capacity.

Manchester Financial could phase construction in 100 MW increments every six months. That approach may give utilities and construction teams more time to accommodate the load, while allowing Manchester Financial to adjust expansion to customer demand. Still, the reported absence of a committed customer adds uncertainty. Building capacity ahead of contracted demand can expose a project to financing, leasing and technology-cycle risks.

Data centers are unusually concentrated energy consumers. A large campus can create jobs and tax revenue, yet it does not necessarily generate the same street activity, housing supply or mix of uses as a residential and commercial redevelopment. For San Diego, the practical question is not simply whether a data center fits on the NAVWAR property. It is what the city and region might give up by dedicating a large portion of a scarce urban site to digital infrastructure.

Energy efficiency claims will deserve close scrutiny. The Uptime Institute reported that its 2025 survey of more than 800 data-center owners and operators produced a weighted-average annual Power Usage Effectiveness, or PUE, of 1.54. The metric had remained largely unchanged for six years. PUE compares total facility electricity consumption with the electricity delivered to computing equipment. A lower figure generally indicates less overhead from cooling, power conversion and related systems, although PUE alone does not show whether the electricity comes from renewable sources.

Water belongs in the discussion too. Water Usage Effectiveness, or WUE, can help officials compare cooling designs and understand how local water supplies could be affected. Cooling Efficiency Ratio, renewable-energy factors and emissions provide additional measures. Publishing those figures at each 100 MW phase would give policymakers, potential customers and residents a clearer view of actual performance rather than relying on broad sustainability claims.

The energy source remains unresolved. Manchester Financial reportedly has not committed to powering the campus with 100% renewable electricity, and backup generation could include natural gas. San Diego Community Power could have a role in procurement discussions, but clean-energy contracts would still need to be assessed against when electricity is generated, when the facility consumes it and how grid reliability is maintained. A yearly renewable-energy match does not necessarily mean carbon-free power is available during every operating hour.

Operational resilience adds another layer. Zurich North America has highlighted the range of risks surrounding data-center facilities, making utility dependencies, cooling systems, fire protection and backup power relevant considerations during planning. For a campus of this size, officials could seek clear information about redundancy, fuel storage, noise, air emissions and emergency operations before any approval.

Then there is the ratepayer issue. Who pays for grid improvements required by a 400 MW customer? San Diego Gas & Electric, regulators and local officials would need to clarify which costs are assigned to Manchester Financial or a future tenant and which, if any, could enter the broader utility rate base. That said, a large customer could also support new infrastructure through long-term contracts if the commercial arrangements are structured accordingly.

No final choice has been made between a data-center-centered redevelopment and alternatives that include more housing. That leaves room for a transparent comparison. Before the concept advances, San Diego stakeholders will likely want phase-by-phase projections for PUE, WUE, emissions, backup generation, customer commitments and grid costs. At 400 MW, small assumptions become large public consequences very quickly.