Data centers’ deep political unpopularity enters debate over CEQA reform measure

Opponents of California's Proposition 45, a ballot measure designed to streamline environmental reviews under the California Environmental Quality Act (CEQA) for certain building projects, contend the measure would accelerate the construction of data centers, despite their widespread public unpopularity. A coalition including environmental groups, labor unions, and the California Democratic Party has launched a campaign against Prop 45, which they label a "corporate power grab." Mabel Tsang, political director of the California Environmental Justice Alliance, explicitly stated that the proposition would enable "data center giants, oil, gas and utility corporations to build what they want where they want."

Conversely, the campaign for Proposition 45, funded by construction groups, affordable housing advocates, the California Chamber of Commerce, utility companies, and tech executives, dismisses the data center argument as "fearmongering." Amelia Matier, a spokesperson for the Yes campaign, asserted that Proposition 45 "unequivocally does not include data centers." She accused opponents of exploiting public dissatisfaction to push false narratives. A Public Policy Institute of California (PPIC) poll revealed 77% of likely voters oppose data center construction in their area, underscoring the political sensitivity of the issue.

Proposition 45 aims to impose 365-day deadlines on government agencies for environmental impact report approvals and 270-day deadlines on courts for resolving legal challenges. It also restricts judicial review to "substantial evidence" supporting agency approvals, preventing judges from considering competing environmental studies. Opponents, including Gabriel Tolson of the No campaign, argue the measure's broad definition for "broadband and digital access" projects could be exploited by data center developers, despite the Yes campaign's denials and the inclusion of explicit exemptions for other controversial projects like the Delta conveyance. Legal experts, such as UC Davis law professor Chris Elmendorf, suggest that if the measure passes and a data center project attempts to use it, future courts would likely consider voter intent and ballot language to determine applicability.