SMF02 marks Prime’s continued commitment to meeting surging California demand for AI-ready digital infrastructure
SACRAMENTO, Calif. – May 7, 2026 – Prime Data Centers, a leading international developer and operator of hyperscale and purpose-built data centers, today broke ground on SMF02, the second data center on its Sacramento campus. The 150,000-square-foot facility will deliver 18MW of critical IT load capacity, marking a significant expansion of Prime’s regional presence and continued investment in California as demand for AI-ready digital infrastructure accelerates across the state.
California is one of the most active data center markets in the nation, driven by rapid growth in artificial intelligence, cloud computing, and high-performance workloads. Having been present in the region for over 10 years, we have seen Sacramento emerge as a key destination for data center development, offering access to reliable power, a favorable operating environment, and proximity to the Bay Area technology corridor. SMF02 will expand the capacity of Prime’s existing Sacramento campus, which includes the operational SMF01 facility, and will be designed to support hyperscale and purpose-built deployments requiring scalable, high-density infrastructure.
“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,” said Michael Hildebrand, SVP of Product Delivery at Prime Data Centers. “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.”
Facility Highlights
SMF02 is designed to meet the rigorous demands of next-generation AI and high-performance computing workloads. The facility will feature a closed-loop cooling system that recirculates chilled water significantly reducing water consumption compared to traditional evaporative systems and enabling precise thermal management for high-density compute environments. Further reinforcing its water stewardship commitment, Prime procures Water Restoration Certificates® (WRCs) equal to 120% of its annual operating water consumption across its portfolio – and commits to maintaining that coverage every year.
Prime’s sustainability efforts at the Sacramento campus extend beyond the building itself. The campus is also home to on-site beehives that support local pollinator populations and regional biodiversity. These initiatives reflect Prime’s commitment to operational efficiency and environmental stewardship across its data center portfolio.
Construction of SMF02 is expected to support approximately 250 construction jobs in the Sacramento region, with an additional 30 permanent positions created to assist ongoing operations once the facility is online. Prime is partnering with Clune Construction as its general contractor for the project.
“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.” shared Errol Lolin, Senior Vice President, General Manager at Clune Construction Company.
Prime’s Sacramento campus is served by the Sacramento Municipal Utility District (SMUD), one of the nation’s largest community-owned electric utilities, supporting the reliable, low-carbon power delivery that large-scale data center operations require.
“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,” said CEO & General Manager Paul Lau. “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.”
Additionally, the Greater Sacramento Economic Council has been a key partner in positioning the region as a destination for large-scale technology investment and supported Prime’s expansion in the Sacramento market.
“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,” said Barry Broome, President and CEO of the Greater Sacramento Economic Council. “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.”
The SMF02 groundbreaking represents the company’s latest step in delivering digital infrastructure capacity that keeps pace with the accelerating demands of AI, cloud and enterprise technology customers. To learn more about Prime’s Sacramento data centers, please visit https://primedatacenters.com/locations/sacramento/.
About Prime Data Centers
Prime Data Centers is a leading international developer and owner of hyperscale and purpose-built data centers, designed to power the future of AI, high-performance computing and digital transformation. Prime has four gigawatts of operational and planned capacity across top-tier markets in the U.S. and Europe, including Chicago, Dallas, Los Angeles, Phoenix, Silicon Valley, Austin, Frankfurt, Berlin, Madrid and the Nordics. With a focus on scalability, adaptability, and sustainability, Prime delivers custom digital infrastructure solutions that meet the unique needs of today’s technology innovators. For more information, visit Prime Data Centers and follow us on LinkedIn.
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