LA County cities weigh the data center question in the face of AI surge

Los Angeles County cities are confronting the widespread expansion of artificial intelligence data centers, which has sparked debates over their substantial environmental impacts, the cost of powering them for utility customers, and their competition with urgent needs such as affordable housing. The issue has become a critical point of discussion across the region, with some municipalities embracing the technology while others actively resist or halt proposed projects. In Monterey Park, residents successfully mobilized, pushing the City Council to approve a ballot measure aimed at banning data centers. This strong community push led developer HMC StratCap to withdraw its application for a 218,400-square-foot data center. Similarly, in El Monte, the City Council enacted a 45-day moratorium on data center construction following local rumors, despite having no pending projects. Meanwhile, the City of Industry is grappling with speculation around potential data center sites, including the Puente Hills Mall where Real Estate Development Associates (REDA) has plans under review that could include a 150,000-square-foot data center. REDA co-founder Jason Krotts emphasized his primary focus on logistics and multi-family development, stating market forces would dictate the final use. Concerns are also prominent in Pasadena, where Amazon's purchase of a vacant building for quantum computing prompted city officials to analyze their lack of data center policies. State Senator Sasha Renée Pérez (D-Pasadena) introduced Senate Bill 978, the Data Center Community Accountability Act, to ban diesel backup generators and ensure data centers cover their electricity costs. Vernon, on the other hand, hosts Prime Data Center, a 33-megawatt facility, and City Administrator Brian Saeki highlighted how data centers have helped stabilize electricity rates and utilize air-cooling. However, Vernon is no longer accepting new data center applications. The broader discussion includes concerns about data centers' immense energy consumption and water demands. Samuel Brown of Avocado Heights Vaquer@s highlighted the significant health and environmental impacts, while Julia Dowell of the Sierra Club voiced fears that increased demand could lead to greater reliance on gas-powered electricity in California. The Sierra Club advocates for regulations such as large load tariffs and requirements for data centers to bring their own clean energy. The 'Little Hoover' Commission on California State Government Organization and Economy also issued recommendations to protect ratepayers from increased costs. Looking ahead, the Los Angeles County Board of Supervisors plans to discuss data center impacts, with Supervisor Hilda Solis motioning for departments to examine effects and for County Counsel to prepare for potential legal actions and lay groundwork for a moratorium in unincorporated areas.