Monterey Park Draws a Line in the Data Center Sand

The Monterey Park City Council has decisively halted a data center development proposed by Australian-based HMC StratCap at the Saturn Business Park, following significant community backlash. Residents, organized by groups such as 'No Data Center MPK' and 'San Gabriel Valley Progressive Action,' voiced strong concerns over noise pollution, potential increases in water and electricity rates, and environmental impacts, including the 'heat island effect.' Councilmembers like Jose Sanchez and Vinh Ngo echoed these worries, particularly regarding the demand on the city's power grid and HMC StratCap's initial pursuit of a Mitigated Negative Declaration instead of a full Environmental Impact Report. After contentious public meetings, the City Council unanimously passed an ordinance establishing a 45-day moratorium on data center development, later extending it to 10 months and 15 days, prohibiting new applications or processing of pending ones until January 2027. The council also unanimously voted to place a ballot measure on the June 2 ballot for a city-wide ban on data centers. This move led HMC StratCap to withdraw its application, effectively ending the specific project. City Attorney Berger was authorized to secure funds to defend against potential litigation from HMC StratCap, but the company's withdrawal negated any claim for a lawsuit. With the data center project abandoned, HMC StratCap, now the largest landowner in Monterey Park, will work with the City to find alternative productive land uses for its properties. Monterey Park's actions could set a precedent for other cities and states facing similar data center development concerns.