Why El Segundo said no to AI data centers
Residents in El Segundo, California, vehemently opposed a proposed AI data center project during a planning commission meeting, citing concerns over water and electricity usage, pollution, and sound. Faced with overwhelming public opposition, the developer subsequently withdrew their application. This action effectively blocked the project from moving forward.
At a recent El Segundo City Hall planning commission meeting, residents turned out in large numbers to oppose a proposed AI data center. The developer, Arjun Shaen, managing partner and founder of 8 for a Real Estate Development Company, sought to replace an existing hotel property on Nash Street with the new facility, arguing it would be a better use of the space and meet the needs of local defense and tech companies.
However, community members, including long-time resident Kai Albertson, expressed significant concerns about increased pollution, sound, and the project's impact on water and electricity usage. Although an environmental analysis firm hired by the city found the data center would reduce water use compared to the hotel and have no specific adverse public health impacts, residents largely distrusted these findings.
After hours of public comment, almost exclusively in opposition, the developer withdrew the application, halting the project. This incident reflects a broader trend of communities nationwide pushing back against data center development, with 155 communities having paused or banned data centers, according to the US data center moratorium tracker. El Segundo already has four data centers, but this would have been the first purpose-built for AI use.