Coachella City Council Halts Data Center Project, Enacts Moratorium Amid Community Opposition
The Coachella City Council unanimously voted to halt a proposed data center campus by Stronghold Power Systems and terminate its utility agreement with the developer following significant community opposition. The council also approved a 45-day moratorium on all data center development in the city. Residents voiced concerns about water usage, electricity costs, and potential air pollution.
The Coachella City Council unanimously voted to halt a proposed 3 million square-foot data center campus and terminate its municipal utility agreement with developer Stronghold Power Systems. This decision followed intense grassroots opposition from residents concerned about the project's environmental impact, particularly on water resources and electricity costs, as well as its proximity to residential areas and an elementary school.
Organizers like local realtor Elizabeth Humphries rallied residents through the "NotInMyValley.com" movement, accusing the city of lacking transparency regarding the initial utility agreement. Despite Stronghold CEO Scott Bailey's claims that the data centers would use non-potable canal water, residents remained unconvinced, culminating in a May 27 council meeting with hours of public comment against the project.
At a special meeting on June 4, Mayor Frank Figueroa acknowledged the strong community support for action, leading the council to approve a 45-day moratorium on all data centers and sever ties with Stronghold Power Systems. While city officials acknowledged the high probability of litigation from Stronghold, they stated that community sentiment made the decision clear. Congressman Raul Ruiz also submitted a letter opposing the project.
The council is expected to revisit the issue on July 9 to consider extending the moratorium and discussing permanent restrictions on data center development within Coachella. Stronghold Power Systems expressed disappointment and stated it would review its options. The outcome marks a significant victory for local residents amidst a growing national trend of community backlash against large-scale data center projects.