The City of Coachella has reversed its decision on data centers, following a wave of public backlash, just months after receiving unanimous approval from city lawmakers.
On Thursday, the city, located in Riverside County, instituted a 45-day temporary halt on data center developments. The council also voted unanimously to end its agreement with Stronghold Power, the company that had initially proposed the project.
This move comes in response to sustained public protests and concerns from Coachella residents, ranging from environmental issues to potential increases in electricity costs. Prior to the city council meeting, hundreds of residents gathered outside, brandishing signs and chanting, “No Data Centers!”
“I believe the council followed the mayor’s lead to correct the course. I’m thrilled about the moratorium and hopeful for a permanent ban,” resident James Rodriguez commented to NBC Palm Springs.
The City of Indio has mirrored Coachella’s decision, with its council also unanimously voting to implement the moratorium.
Initially, in February, the Coachella council had given the green light to Stronghold Power’s plan to create the “Coachella Valley Technology Campus,” which was to cover up to 450 acres. However, this new moratorium effectively halts any further development of the project.
“Stronghold Power Systems is disappointed by the city council’s decision to terminate our development agreement. We came to Coachella with a project that would provide substantial benefits to the city, built around leading-edge environmental protections,” a Government Affairs Advisor for the company said.
The backlash over data centers isn’t confined to the Coachella Valley. In a decision that could reverberate across California, voters in Monterey Park approved a ballot measure permanently prohibiting new data center development within city limits.
The vote made Monterey Park the first city in the nation to enact such a ban through a direct vote of the people, highlighting growing concerns about the industry’s impact on local communities.
The Coachella City Council will reconvene in July to determine next steps.
