Data Center Plan Scrapped After El Segundo Residents Raise Alarm Over Water, Power Impacts

Developer Eightform withdrew its proposal for a five-story AI data center in El Segundo, California, after significant community outcry during a July 9 Planning Commission meeting. Residents, numbering over 100, packed the chambers and submitted hundreds of pages of public comment, expressing alarm over the project's potential strain on the city's aging water and electricity infrastructure, as well as noise pollution from 16 proposed diesel backup generators.

Local residents like Will Ready and Nancy Cobb criticized the project, arguing it was rushed through without adequate community notice and that the environmental review relied on outdated information. Concerns were also raised about the high electricity rates paid by El Segundo residents, the facility's water consumption despite claims of reduced usage compared to the existing hotel, and the proximity to a children's soccer field. The proposed data center would have required almost 50 megawatts of electricity and over 5,000 gallons of water daily.

Following a nearly two-hour public comment session, Arjun Shokeen, representing Eightform, announced the withdrawal of the application, stating he had "heard the community loud and clear." While many celebrated the decision, some residents expressed skepticism about future industrial proposals and the community's long-term ability to maintain local control.