Imperial Valley data center developer files lawsuit seeking access to Colorado River water
Imperial Valley Computer Manufacturing (IVCM) has filed a lawsuit against the Imperial Irrigation District (IID) to gain access to 260 million gallons of Colorado River water annually for its proposed data center. This move marks a departure from IVCM's previous pledges to use only recycled wastewater. The project faces significant local opposition and has prompted several Imperial County cities to enact moratoriums on data center development, with the county also considering a pause.
Imperial Valley Computer Manufacturing (IVCM), a company led by developer and lawyer Sebastian Rucci, has filed a lawsuit against the Imperial Irrigation District (IID) seeking 260 million gallons of Colorado River water annually for its large artificial intelligence complex in the Imperial Valley. This legal action comes after IVCM had previously committed to using only recycled wastewater from nearby cities, stating its project would not draw from the drought-stricken Colorado River.
The lawsuit, filed in Imperial County Superior Court, claims that turning to IID was a "last resort" after negotiations with the cities of Imperial and El Centro for recycled water agreements fell through. IVCM had offered to cover wastewater treatment plant upgrades and pay for the water, but the cities reportedly backed out, leading to IID rejecting IVCM's water application in May. Rucci is representing IVCM in this litigation.
The data center project faces strong opposition from residents and local officials due to environmental and public health concerns. This backlash has spurred local government action, with the Imperial County Board of Supervisors scheduled to consider an emergency pause on data center development. Additionally, several Imperial County cities have already enacted their own local moratoriums. IID General Counsel Wayne Stumpfer declined to comment on the pending case. IID Chair Karin Eugenio has publicly opposed IVCM's project, and the IID Board of Directors is evaluating a new energy pricing structure for data centers and other high-demand customers.