Data centers face backlash across California as residents demand more transparency around their impacts
Monterey Park has become the first U.S. city to ban data centers through a resident-backed ballot measure, following concerns about transparency and resource use. This action signals growing statewide opposition in California, with other communities like Coachella also enacting moratoriums due to similar concerns and lack of developer engagement. A state bill requiring water use disclosure was vetoed, but a utility provider is facing a lawsuit over water access denial to a data center developer.
Monterey Park, a city east of Los Angeles, recently became the first U.S. city to ban data centers, with nearly 90% of voters supporting the ballot measure. This historic move follows significant resident opposition, led by individuals like Yun Wang, who campaigned against a proposed 250,000-square-foot AI data center by Australian company HMC Stratcap. Residents accused the city council and HMC Stratcap of a lack of transparency regarding the project's environmental report, land use changes, and potential impacts on water and electricity resources. After public backlash and educational "teach-ins," the Monterey Park City Council unanimously voted to place the ban on the June ballot.
Across California, other communities are similarly pushing back against data center developments. In Coachella, residents mobilized against plans by Stronghold Power Systems to build six data centers as part of an agreement to create a city-owned electric utility. Concerns over water access in the already strained Coachella Valley, coupled with a perceived lack of community engagement from Stronghold Power Systems and the city council, led to a public outcry. In response, the Coachella City Council adopted a 45-day temporary moratorium on data center approvals and terminated its agreement with Stronghold.
The broader data center industry has faced scrutiny, with Governor Gavin Newsom vetoing Assembly Bill 93, which would have required data centers to disclose water usage, citing unclear economic impacts. The Data Center Coalition lobbied against the bill, arguing it could reveal trade secrets. Experts like Kate Stoll of the American Association for the Advancement of Science suggest increased transparency and early community engagement are crucial for developers to build trust and address environmental concerns, particularly around water and energy consumption. Meanwhile, Imperial Irrigation District, a utility in the Imperial Valley, is facing legal challenges for denying a data center developer water access, further highlighting water as a contentious issue in data center development across the state.