Unfinished data center construction site with protest banner in Monterey Park.
In a landmark decision, voters in Monterey Park, California, have overwhelmingly approved a measure that permanently prohibits the construction of data centers within the city limits. This historic vote, with 88.34% in favor, establishes a precedent for local governance grappling with the rapid expansion of digital infrastructure, particularly that which powers the burgeoning artificial intelligence sector.
The ballot measure, identified as Measure NDC, amends the city’s General Plan to enact a citywide ban on data centers. This prohibition will remain in effect unless overturned by voters in a future election. The initiative was framed to voters as a critical step in safeguarding air quality, drinking water resources, and public health, while also mitigating potential increases in electricity and water rates.
This decisive vote followed months of intense community opposition to a proposed data center project at 1977 Saturn Avenue. The project, spearheaded by Australian investment firm HMC StratCap through its DigiCo platform, envisioned a roughly 218,400-square-foot facility designed to support substantial computing operations, including those for AI workloads. Initial project documents indicated a need for approximately 50 megawatts of peak electrical capacity and projected annual tax revenues of about $5 million for the city.
However, opponents voiced significant concerns, arguing that the project’s substantial electricity and water demands, coupled with its environmental footprint, outweighed the projected economic benefits. The mounting public opposition to the Saturn Avenue proposal throughout 2024 and 2025 ultimately spurred city officials to pursue broader restrictions on future data center developments, leading to the project’s eventual withdrawal.
On March 4, the Monterey Park City Council unanimously voted to place the prohibition measure on the June ballot. Following the election’s conclusive results, Mayor Elizabeth Yang celebrated the outcome, stating on Facebook, “Landslide win!! Congratulations to our city Monterey Park on making history!!!”
The Monterey Park vote occurs amidst a nationwide surge in data center investment, with technology companies and developers committing billions to support the exponential growth of artificial intelligence and cloud computing services. This expansion has ignited widespread debates across the country concerning electricity consumption, water usage, land-use planning, and the true economic advantages these facilities offer local communities.
Monterey Park’s decision is being hailed as a significant move in limiting data center development. As artificial intelligence adoption accelerates, the challenges of balancing the increasing demand for digital infrastructure with local environmental and quality-of-life concerns are expected to remain a central issue for governments, developers, and residents across the United States.
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