Prime Data Centers has broken ground on its second Sacramento data center, SMF02, a 150,000-square-foot facility designed to deliver 18 megawatts of critical IT load capacity.

The groundbreaking marks a significant expansion of the company's existing Sacramento campus, which already includes the operational SMF01 facility, and reflects accelerating customer demand for artificial intelligence and high-performance computing infrastructure in California.

A Growing Campus in an Emerging Market

Prime Data Centers describes itself as an international developer and operator of hyperscale and purpose-built data centers, and has maintained a presence in the Sacramento region for over a decade.

The company characterizes Sacramento as a key destination for data center development, citing access to reliable power, a favorable operating environment, and proximity to the Bay Area technology corridor as factors underpinning the market's appeal. Michael Hildebrand, Senior Vice President of Product Delivery at Prime Data Centers, said the new facility is a direct response to observed customer demand.

"Sacramento has proven itself as a strategic growth market, and SMF02 is a direct response to the demand we are seeing from customers deploying AI and high-performance computing workloads at scale," Hildebrand said.

"With SMF01 operational and SMF02 now underway, our Sacramento campus gives customers a long-term home for mission-critical infrastructure in one of California's most important technology regions."

SMF02 is designed to support hyperscale and purpose-built deployments requiring scalable, high-density infrastructure, according to the company.

Facility Design and Cooling Technology

The SMF02 facility will feature a closed-loop cooling system that recirculates chilled water, a design Prime says significantly reduces water consumption compared to traditional evaporative systems.

The company states the approach enables precise thermal management suited to high-density compute environments of the kind required by modern AI workloads.

Beyond the cooling infrastructure, Prime Data Centers procures Water Restoration Certificates equal to 120 percent of its annual operating water consumption across its portfolio, a commitment the company says it maintains every year.

The Sacramento campus also features on-site beehives intended to support local pollinator populations and regional biodiversity, which Prime has positioned as part of its broader environmental stewardship efforts.

Construction Jobs and Economic Impact

Construction of SMF02 is expected to support approximately 250 construction jobs in the Sacramento region at peak activity.

Once the facility is operational, Prime anticipates the creation of an additional 30 permanent positions to support ongoing operations. Prime is partnering with Clune Construction as its general contractor for the project.

Errol Lolin, Senior Vice President and General Manager at Clune Construction Company, highlighted the existing relationship between the two organizations.

"We are proud to once again partner with Prime Data Centers on this innovative project.

Our relationship reflects the trust we've built together on a national level.

Construction will support approximately 250 on-site workers at peak, with additional economic activity generated through local subcontractors, suppliers, and service providers," Lolin said.

Power Infrastructure and Utility Partnership

The Sacramento campus is served by the Sacramento Municipal Utility District, known as SMUD, which the company describes as one of the nation's largest community-owned electric utilities.

Prime has pointed to SMUD's low-carbon power delivery as a feature supporting the operational requirements of large-scale data center activity. Paul Lau, CEO and General Manager of SMUD, offered support for the expansion.

"Congrats to Prime on their expansion. We're proud to grow Sacramento area businesses with clean, reliable power at some of the lowest rates in California," Lau said.

"Prime is an example of how partnering early encourages regional growth and helps us maintain low rates for our customers.

Together, we're helping create a future-ready Sacramento."

Regional Economic Development Support

The Greater Sacramento Economic Council has been identified by Prime as a key partner in positioning the Sacramento region as a destination for large-scale technology investment and has supported the company's expansion in the market.

Barry Broome, President and CEO of the Greater Sacramento Economic Council, described the groundbreaking in the context of statewide demand trends.

"SMF02 marks a significant expansion of Prime Data Centers' regional presence and continued investment in California at a time when demand for AI-ready digital infrastructure is accelerating across the state," Broome said.

"Greater Sacramento is uniquely positioned to meet this moment, with reliable, low-carbon power delivery through SMUD, a strategic location, and a business-friendly environment that supports scalable, high-performance computing and long-term growth."

Context Within Prime's Broader Activity

The SMF02 groundbreaking comes amid a period of active development and organizational activity for Prime Data Centers. In March 2026, the company announced plans for a major data center development in Esbjerg, Denmark, and appointed John Bates as Executive Vice President of Development and Power.

Earlier, in January 2026, Prime's Dallas and Sacramento facilities received ENERGY STAR certification for superior energy performance.

In November 2025, the company announced a partnership with Lambda to deliver AI-optimized infrastructure in Southern California.