Title
Introduction of Ordinance Authorizing the City Manager to Execute a Fifteen-Year Lease with One Five-Year Option to Extend, Substantially in the Form of the Attached Lease, with Nautilus Data Technologies, Inc. for Building 530, an 82,251-Square Foot Building Located at 120 West Oriskany Avenue, Building 529, a 3,200-Square Foot Building, and Building 600, a 343-Square Foot Building, at Alameda Point. [Requires Four Affirmative Votes] (Base Reuse 819099)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
Nautilus Data Technologies (Nautilus), a Delaware corporation, uses innovative water cooling technology to operate data centers that reduce the cost of computing, cut power usage, eliminate water consumption, decrease air pollution, and lower greenhouse gas emissions. This action will authorize the City Manager to execute a fifteen-year lease with one five-year option with Nautilus for the development of a water-cooled data storage facility in Building 530, Building 529, and Building 600 at Alameda Point. The project includes $6 million in building improvements and an investment in infrastructure that will result in millions of dollars in electrical system improvements, water intake/discharge and recirculation systems, and high-performance internet fiber and connections. This item was continued from the May 7, 2019 City Council meeting, and public comment will be heard as City Council provided direction about changes in the lease terms as described below.
BACKGROUND
Nautilus has been interested in developing a data storage facility at Alameda Point for approximately two years. Initially, Nautilus was interested in locating its water-cooled data storage system on a barge at the piers, a technology it is currently piloting at the Port of Stockton. However, after touring Alameda Point and seeing Building 530 with its proximity to the water, its lack of windows, and privacy, the company thought the building would be ideal for...
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