Exclusive: Identity of mystery Mt. Shasta data center developer revealed

SFGATE has identified the mystery developer that wants to build a data center in the city of Mount Shasta, weeks after city officials refused to name the company.

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Siskiyou County planning emails, obtained by SFGATE through a public records request, reveal the company as Dunlieh Infrastructure Group, a San Diego County-based developer. Dunlieh specializes in creating the infrastructure needed to operate data centers, including acquiring land, building the structures and obtaining the power needed to run them via natural gas power plants, according to the company website. 

It’s not clear the company has completed construction on any computing facility at this time — nine projects listed on Dunileh’s site, stretching across seven states, all appear to be under development. Dunlieh did not respond to a request for comment.

Mount Shasta City Manager Todd Juhasz revealed during a city council meeting last month that a company reached out asking about the property, the site of a now-vacant Crystal Geiser bottling facility, that largely lies just outside city lines in unincorporated Siskiyou County. Though that location gives the county’s board of supervisors jurisdiction over any development, city officials attended the initial meeting with the developer.

During the June 22 council meeting, Juhasz said that a data center developer reached out to the city inquiring about the land. Though no development applications have yet been filed, fears of the increasingly controversial project have already driven residents against city staff. The Shasta Scout reported that city staff received threats from some community members, and on June 29, city police Chief Robert Gibson released a statement announcing increased security.

“The Mt. Shasta Police Department will investigate, arrest, and prosecute anyone making such threats to the fullest extent of the law,” Gibson wrote. “This is not a warning it is a commitment.”

Despite the public pressure, Juhasz did not disclose the name of the developer that inquired about the land, to SFGATE or other outlets. On June 30, SFGATE filed a records request with Siskiyou County for all communications between county planning department officials and Mount Shasta city officials related to the land the buyer was interested in, dating back to the beginning of this year, all of which are public records under state law. (SFGATE submitted a similar request to the city of Mount Shasta; it has not been fulfilled by publication of this article.)

On Thursday, the county disclosed dozens of emails that paint a more detailed picture of the local controversy.

Juhasz, Mount Shasta Planning Director Kim Fowler and Siskiyou County Deputy Director of Planning James Phelps met with East West Global, a real estate company representing Dunlieh, on June 19 over Zoom. Fowler told SFGATE on Thursday that this was a routine, preliminary meeting meant to understand the developer’s intent and clarify specifications about the property. Emails show that the developer invited city officials to the meeting since a part of the property was within the city’s limits, which Phelps called a “great idea.” 

A few days later, Phelps emailed the county’s head of community development to summarize the developer’s pitch: They wouldn’t tear down the existing structure, the data center would be all electric with no diesel generators, and it would use a close-loop water cooling system. 

“From the outside you would not know it was a data center,” the email reads.

Though a follow-up email from East West Global suggests the city and county painted the project as unrealistic due to the negative public sentiment, Phelps appeared to be more optimistic. Phelps told East West Global that he believes that the Crystal Geyser location could still work, but they would need to meet further to discuss “possible obstacles.”

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A financial incentive exists for the county to build at this site: It can charge Dunlieh for electricity. Another email suggests interest from the county if Mount Shasta opposed the project, noting that the developer was open to exploring a data center “on county land using county power.”

“I suggested they might consider buying power from the county’s box canyon dam project,” one email reads. “Maybe county could get a better rate than what we are receiving, since I heard that was a concern at the last board meeting.” 

Emails also suggest some tension between the city of Mount Shasta and Siskiyou County over the city manager’s decision to keep the public apprised of the meeting’s existence. Tonya Dowse, executive director of the Siskiyou County Economic Development Council, a nonprofit that works close with the county, emailed Phelps on June 23 expressing support amid any backlash he might be receiving for entertaining the data center proposal, and to let him know that she had “nothing to do” with Juhasz’s decision to speak publicly about the proposal. 

“I am very disappointed that the city would say something publicly about an extremely early, initial inquiry,” Dowse wrote. “Honestly I think it’s unprofessional and sadly adds to the perception that they do not support development.”

The county, however, would be open to exploring further options, including pitching the developer to the city of Yreka, about a 45-minute drive north of Mount Shasta. On June 29, Phelps emailed Yreka Assistant City Manager Juliana Lucchesi, with the subject line “Introduction – Potential High Tech Industrial Opportunities.”

“Given the City of Yreka’s industrial base, available land, and location, I thought it may be worthwhile for you to connect and discuss whether there may be opportunities with the city,” Phelps wrote.

Reached by phone Thursday, Yreka City Manager William Ibershof told SFGATE that the city has no interest in a data center. He added that nobody has reached out to him directly regarding a proposed data center within city limits, nor are residents interested in entertaining a proposal.

“People moved out here for a slower pace of life,” Ibershof said.

Work in Siskiyou County and want to talk? Contact tech reporter Matthew Brown securely at [email protected] or on Signal at matthewbrownsfgate.11.