California City Becomes First in the Nation To Ban Data Centers Outright

Monterey Park, California, enacted a permanent ban on data center development on June 2, becoming the first city in the United States to do so. Approximately 88% of residents voted in favor of the ballot measure, which was spurred by a proposed 218,400-square-foot data center project at 1977 Saturn Street. This project, planned for a 16-acre site, would have been located 500 feet from the nearest residence and was projected to consume three times the electricity of the entire city. Residents voiced significant concerns regarding environmental quality and other impacts during public comment sessions, leading to opposition from Mayor Elizabeth Yang and several City Council members. Unlike temporary moratoriums or pauses on tax incentives seen in other regions like Durham, North Carolina, and Ohio, Monterey Park's ban requires a new ballot measure to be repealed. The city, located east of Los Angeles in the San Gabriel Valley, has a population of 58,000 and a median home value of approximately $863,000, according to U.S. Census Bureau data.