California cities face data center backlash; state lawmakers pass regulations on energy and water use
Multiple California cities are experiencing significant community opposition to proposed data center developments, leading to project withdrawals and moratoriums. Concurrently, California lawmakers have passed legislation to regulate the immense energy and water consumption of the state's growing data center industry.
Across California, several cities are encountering strong community backlash against data center proposals, driven by concerns over substantial energy and water consumption. In El Segundo, a developer withdrew a data center project during a planning commission meeting due to opposition. Similarly, plans for an electrical utility intended for a data center in Coachella collapsed after residents and city officials raised concerns. Oakley saw a developer remove a data center component from a larger project to allow it to proceed.
The city of Monterey Park notably enacted a permanent moratorium on data center projects, a move that garnered significant public support and national attention. Monterey Park Mayor Henry Lo indicated developers initially failed to engage the community on concerns regarding water and energy usage. Amidst these local developments, California state lawmakers have successfully negotiated and passed compromise legislation aimed at regulating the energy and water use of the state's expanding data center industry. This action was prompted by community anger and fears of rising utility bills.
Separately, U.S. Representative Jim Costa highlighted federal legislation, H.R. 5227 (the Unleashing Low-Cost Rural AI Act), which would mandate the Secretary of Energy to study the impacts of artificial intelligence and data center growth on national energy resources and water supplies, emphasizing the strain these facilities can place on rural communities.