City of Commerce enacts 45-day data center ban as it considers further regulation

City of Commerce enacts 45-day data center ban as it considers further regulation

News ClipWhittier Daily News·Commerce, Los Angeles County, CA·8/12/2026

The Commerce City Council has enacted an immediate 45-day moratorium on data center development, citing a lack of specific municipal code provisions to address potential impacts. This temporary ban allows city staff to study data center operations and develop proposed land-use standards, zoning amendments, and environmental protections. The council will also consider extending the moratorium by up to an additional 10 months and 15 days.

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Gov: Commerce City Council, City of Commerce

The City of Commerce, California, has imposed an immediate 45-day moratorium on new data center development, a decision made by the Commerce City Council at its recent meeting. Officials announced Wednesday that an urgency ordinance was adopted, prohibiting the approval of land-use permits, entitlements, or agreements for data center projects during this period.

The city's current municipal code lacks specific definitions or regulations for data centers, leaving existing zoning standards inadequate to address potential concerns such as noise, air-quality, and infrastructure strain. Modern data centers are known for their substantial demands for electricity and water, along with the need for large cooling systems and backup generators. Mayor Kevin Lainez emphasized the city's commitment to residents' well-being, stating that a thoughtful approach now would ensure economic growth aligns with community quality of life.

City Manager Ernie Hernandez added that the focus is on proactive and responsible oversight to prepare Commerce for managing complex industrial proposals. The moratorium provides staff time to research data center operations and draft comprehensive land-use standards, zoning amendments, and environmental protections. A written report detailing these measures is expected to be presented to the council within 35 days.

Looking ahead, the City Council plans to schedule a public hearing to consider extending the moratorium for an additional period, potentially up to 10 months and 15 days, to ensure adequate time for regulatory development.