Developer pulls Monterey Park data center plan after backlash

HMC StratCap, a developer whose parent company is DigiCo Infrastructure REIT, has withdrawn its controversial proposal to construct a data center in Monterey Park, California. The decision, announced on Tuesday, April 2, 2026, follows months of intense pressure from local residents and advocacy groups who voiced concerns over potential environmental impacts, energy consumption, and health risks associated with the project. Community members actively protested at rallies and city council meetings, eventually prompting the Monterey Park City Council to approve a temporary moratorium on data center development. The developer's withdrawal also preempts a special election scheduled for June 2, where Monterey Park voters are set to decide on Measure NDC, which proposes a public ban on data centers within the city. Notably, HMC StratCap, which had previously threatened legal action against the city over potential data center restrictions, has now stated it will not contest the ballot proposition. This outcome is being hailed by opponents as a significant victory and a potential precedent for other communities in the region facing similar data center proposals. Local groups such as No Data Center MPK and San Gabriel Valley Progressive Action are celebrating the developer's pull-out but emphasize their continued advocacy for Measure NDC and a separate city ordinance aimed at permanently banning data centers, which the City Council is expected to vote on soon. Organizers are also expanding their efforts to oppose a proposed battery energy storage system in the nearby City of Industry, fearing it could facilitate future data center developments. The two-year-old data center proposal gained public attention only recently, sparking outrage over perceived lack of transparency from the city.