‘You’re a liar.’ Why the world’s biggest building boom has run into a wall in California

An ambitious plan by Australian firm HMC StratCap to build a sprawling data center in Monterey Park, California, has been effectively halted following intense public opposition and recent municipal actions. Bryan Marsh of HMC StratCap faced a hostile crowd at Monterey Park City Hall, where residents brandished "No Data Center" signs and accused him of misrepresentation. The company had invested tens of millions, becoming the city's largest landowner after years of negotiations, but local sentiment shifted dramatically against the project. Residents cited concerns about pollution, higher power bills due to the data center's projected energy consumption (three times that of the entire city), noise, and a perceived "class injustice" favoring "tech bros" over the working class. This local resistance aligns with a broader "NIMBY" movement in California against AI infrastructure, contributing to a trend where data center construction jobs are moving to other states due to high land costs, electricity rates, and stringent regulations. Despite union support for the jobs the project would create, the Monterey Park City Council, after a seven-hour hearing, greenlit a June ballot measure allowing residents to vote on a ban on data centers. This was a significant victory for the activist group "No Data Center Monterey Park." HMC StratCap, which had invested $40 million in the site, indicated it would be forced to sue the city if the project couldn't proceed. However, a letter from its parent company, dated March 31, announced the withdrawal of its application, citing new restrictive regulations and the upcoming ban vote as non-conducive to data center development.