Memo Regarding Ordinance Authorizing the Interim City Manager to Negotiate and Execute a Fifteen-Year Lease with Ten- and Five-Year Options to Extend, Substantially in the Form of the Attached, with Nautilus Data Technologies, Inc., February 19, 2019
2. Form of Lease
Nautilus Data Technologies 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 and its proximity to the water, lack of windows, and privacy, the company thought the building would be ideal for a land-based, water-cooled data storage facility.
Over the years, the City of Alameda (the City) has been approached by numerous data storage companies interested in locating at Alameda Point. Typically, this has not been an industry that meets the overall goals for redeveloping the base, which include job and sales tax generation. However, Nautilus’ sustainable data center design won the 2016 European Breakthrough Innovation Award and the 2015 U.S. Startup of the Year Award. Innovative technologies, especially green energy, are a key sector of the Alameda economy and are supported in the City’s Economic Development Strategic Plan (EDSP).
At its build out, Nautilus will become one of the largest consumers of energy from Alameda Municipal Power (AMP), which is important for the infrastructure development at Alameda Point and the community. At Alameda Point, the growth of Nautilus will contribute, as needed, to the upgrades for the Cartwright Substation that provides power to the Base. Nautilus will require the upgrades to Cartwright to happen more quickly and can therefore facilitate attracting other large energy consumers to the Enterprise District. The community will also benefit, because a large consumer of power will result in significant electric rate revenues for AMP, which helps all customers in Alameda by putting downward pressure on future rate increases.