Monterey Park, California, Bans Data Centers After Resident Vote
Residents of Monterey Park, California, voted overwhelmingly in early June to ban data centers within their city limits, following a contentious proposal by StratCap for a new facility. The decision makes Monterey Park the first U.S. city to enact such a ban, driven by local opposition citing concerns over electricity and water consumption, noise pollution, increased utility prices, and environmental impacts like wildfire risk. The city had previously implemented a moratorium and a council ordinance against data centers before residents pushed for a definitive ballot measure.
Monterey Park, California, has become the first U.S. city to enact an outright ban on data centers, with residents voting by a wide margin in early June to prevent such facilities in their area. The decision followed a six-month legislative process sparked by an investment firm, StratCap, proposing a 250,000-square-foot data center just 65 feet from the nearest home in December. Former Mayor Elizabeth Yang noted the project could have generated approximately $6 million in annual tax revenue, a significant sum for the city's $150 million budget.
However, residents voiced strong opposition, citing concerns over potential noise pollution, exacerbation of climate disasters like wildfires, and increased utility prices due to the data center's substantial electricity and water demands. Opponents also highlighted the strain on existing utilities and the carbon emissions associated with energy consumption. Initially, the city responded by implementing a moratorium on data center development and later issuing a council ordinance to ban them. Dissatisfied with a potentially reversible council decision, residents successfully pushed for a ballot measure, which ultimately led to the permanent ban.