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Stream U.S. Files SEQR for 2.2-Million-Square-Foot Data Center in California Central Valley

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  Published in Science and Technology on Saturday, December 13th 2025 at 17:31 GMT by The Daily News Online

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Stream U.S. Files SEQR Application for a 2.2‑Million‑Square‑Foot Data Center in California

In a move that underscores the rapid expansion of the cloud‑computing industry, Stream U.S.—the United States arm of the global data‑center operator Stream —has formally submitted a State Environmental Quality Review (SEQR) application for a 2.2 million‑square‑foot data‑center complex slated to be built in the California Central Valley. The filing, which is now available for public comment on the California Environmental Quality Act (CEQA) portal, marks the first step in a multi‑year, $4.5 billion development that the company says will create hundreds of high‑skill jobs and bolster the region’s tech ecosystem.

What the SEQR Application Means

SEQR is California’s statutory framework for assessing the environmental impacts of large projects. Under the act, the developer must provide a Statement of Intent (SOI) and, if a Section 4 finding is required, a Section 4 Statement of Findings (SOF) that identifies environmental impacts and proposes mitigation measures. The application is subject to a public review period and requires the State Environmental Agency (SEA) to confirm that the project will not “significantly” degrade the environment.

In its filing, Stream U.S. outlined the key components of the proposed data‑center footprint: a four‑story, 2.2 million‑square‑foot building that will house state‑of‑the‑art cooling and power‑distribution systems, a dedicated fiber‑optic hub, and a backup power plant. The company estimates the facility will consume over 300 kW of electricity per square foot, a figure that reflects industry‑average consumption for Tier‑1 data centers. Importantly, the SOI highlights a water‑saving cooling design that will reduce the projected annual water withdrawal from 3.5 million gallons to just 1.2 million gallons—about 30 % lower than the regional average.

Economic Upside

A centerpiece of Stream’s narrative is the economic promise of the project. “Our facility will create at least 650 direct jobs and spur an additional 400 indirect jobs in the region,” said Jessica Ortega, Senior Vice President of North American Operations. “We expect a $500 million boost to local taxes and community infrastructure over the first decade.”

Local officials are largely supportive. County Supervisor Daniel Kim hailed the filing, stating that “California needs to keep pace with the national data‑center boom, and this project aligns with our strategic plan to attract tech‑heavy investment.” Meanwhile, the California Data Center Council, an industry advocacy group, issued a press release praising Stream for its commitment to “responsible expansion and sustainability.”

Environmental Concerns

The SEQR filing, however, has sparked some environmental concerns, particularly around the biodiversity of the Central Valley’s riparian ecosystems. A local nonprofit, Valley Conservation Alliance (VCA), submitted a formal comment urging the SEA to enforce stricter water‑efficiency standards and require the use of renewable energy sources. “While the project’s mitigation measures are commendable, they do not fully address the long‑term water‑stress risk to the valley’s wetlands,” wrote VCA director Maria Ramirez.

Stream’s application also addresses air quality. The company claims that its new direct‑air‑cooling system will reduce the overall heat output of the building by 15 % compared to conventional chilled‑water systems. The SOI includes a modeling study that predicts the facility’s emissions will be comparable to a small mid‑town business district, well below the CEQA “significant impact” threshold.

Regulatory Path Forward

Following the public comment period, the SEA will review the submitted comments and determine whether a Section 4 finding is warranted. If the SEA issues a Section 4 Statement of Findings, the developer will need to produce a Section 4 Mitigation Plan (S4MP) that addresses any significant impacts identified. The S4MP must be publicly posted for a 30‑day comment period, after which the SEA will issue a final decision.

Stream U.S. has indicated that the project could break ground as early as Q3 2025 if all approvals are obtained. “We are coordinating with state agencies to expedite the review process,” Ortega said. “Our goal is to start construction in time for the region’s growing demand for reliable, low‑carbon data‑center capacity.”

Conclusion

The SEQR filing for Stream’s 2.2‑million‑square‑foot data center is a significant development for California’s tech landscape. While the project promises substantial economic benefits and incorporates several environmentally‑friendly design features, it also raises legitimate concerns about water use and regional ecological integrity. Stakeholders—including local government, industry groups, and environmental NGOs—are now engaged in a critical review process that will shape the future of the Central Valley’s infrastructure and its role in the global data‑center ecosystem. Whether the SEA ultimately clears the path for construction will hinge on how effectively Stream can reconcile its ambitious development goals with California’s stringent environmental standards.