Sierra County Board Hears Concerns Over Rumored AI Data Center

LOYALTON — The Sierra County Board of Supervisors fielded public comments on May 19 about online rumors of a proposed AI data center at 100 Railroad Avenue in Loyalton. Residents expressed worries about potential impacts and urged the board to place the topic on a future agenda for formal discussion. Several speakers called for a countywide moratorium on large data centers until regulations exist.

Planning Director Brandon Pangman told the board the county first learned of the possibility in January 2026. The Northern Sierra Air Quality Management District contacted officials after seeing online claims that a New York company had already built a data center at the biomass plant in Loyalton. “We have never received an application,” Pangman said. “There’s no information.” He added that his department reached out to the property owner and NewYork GreenCloud, the company purported to be responsible for the plan, but did not receive a response.

Pangman outlined the regulatory steps any proposal would face. A project to change or expand operations at the mill site and cogeneration facility would require a conditional use permit. That discretionary approval would come from the Planning Commission at a noticed public hearing. Before the hearing, applicants must complete environmental review under the California Environmental Quality Act, submit studies, and allow input from agencies and the public. There would be “Plenty of opportunity to learn about it, but there’s nothing to learn about other than some rumors online,” Pangman stated.

Supervisor Sharon Dryden told the Mountain Messenger she spoke directly with Jeff Holland, owner of Sierra Valley Enterprises and Sierra Valley Cogen LLC, which holds the site. Holland said he knew nothing about any data center plans. Neither NewYork GreenCloud nor Sierra Valley Enterprises has responded to requests for comment from the Mountain Messenger.

A listing on datacentermap.com still describes the site as a planned 10-megawatt AI data center powered by a refurbished 18-megawatt biomass cogeneration plant. The entry mentions a completed technical feasibility study, work on a preliminary business plan, fiber network plans, and a 72-megawatt-hour battery system. An earlier corporate presentation that referenced the Loyalton site as part of NewYork GreenCloud’s pipeline is no longer available online. NewYork GreenCloud has publicly announced redevelopment only for its Buena Vista biomass facility in Ione.

Board Chair Sharon Dryden assured attendees that the topic would appear on a future agenda once the chair returns. “If we know something, we will have it on the agenda and make sure that everyone is aware,” Dryden said. Residents who spoke during public comment emphasized the need for transparency and community input before any project advances.