Developer drops El Segundo data center plan after power consumption backlash
Developer Eight Form has withdrawn its application for a large data center project in El Segundo, California, due to strong community opposition. Residents primarily cited concerns over the proposed facility's high electrical demands and environmental impact. The withdrawal occurred after a contentious public hearing with the El Segundo Planning Commission.
Developer Eight Form has withdrawn its application to construct a large data center in El Segundo, California, following intense community opposition primarily focused on the project's significant electrical demands. The developer announced its decision to pull the application at the conclusion of a contentious three-hour El Segundo Planning Commission hearing on July 9.
The proposed project involved demolishing a 15-year-old Hyatt Place hotel at 750 N. Nash Street to build a 160-foot-tall, five-story data center along with a dedicated electrical substation. Residential groups in the South Bay organized online to oppose the rezoning, with a key factor in their backlash being an environmental study that indicated the data center would exponentially increase local power consumption compared to the existing hotel.
This withdrawal reflects a growing county-wide resistance to AI data centers, which are often described as "resource-ravenous" due to concerns over excessive water use, noise, and pollution. The article notes that voters in nearby Monterey Park have already passed a citywide ban on such facilities. Despite the community outcry, there remains corporate demand for nearby data centers from defense and aerospace firms located in El Segundo's industrial district.