Voters in a Southern California community have overwhelmingly approved a ballot measure to permanently ban data centers within city limits – the first time a U.S. municipality has used a voter-backed initiative to outright prohibit these large-scale computing facilities.
Approximately 86% to 88% of Monterey Park, Calif., residents voted last week in favor of Measure NDC, an initiative that amends the city’s general plan and land-use framework, creating a permanent prohibition that can only be overturned by a future ballot measure.
“Landslide win!!” Mayor Elizabeth Yang celebrated on social media following the vote. “Congratulations to our city Monterey Park on making history!!!”
The battle began in late 2024 when investment firm HMC StratCap purchased a vacant 16-acre office complex for $39 million. The developers proposed a 218,400-square-foot “hyperscale” data center featuring a 24,000-square-foot electrical substation and backup diesel generators.
Despite developer promises of a pocket park and millions in annual tax revenue, the project sparked intense backlash. Located just 500 feet from residential homes, calculations revealed the facility would consume three times the electricity of the entire majority-minority city of 58,000 residents.
Fearing severe impacts on air quality, noise, and local utility rates, grassroots groups organized fierce opposition. In response, the City Council enacted a temporary moratorium in January. While the developer’s legal counsel initially threatened litigation, labeling the city’s resistance “hostile,” HMC StratCap ultimately withdrew its application in April.
Monterey Park’s permanent ban signals a major escalation in nationwide resistance against the physical footprint of artificial intelligence. While areas like Durham, N.C., and Ohio have implemented temporary moratoriums or paused tax breaks, Monterey Park is the first to lock in a permanent prohibition.
A May Gallup poll underscored this growing friction: 70% of Americans oppose data center construction in their communities. Activists like Erin Brockovich have entered the fray, recently launching a tracking website to help citizens report local data center issues.
The local pushback aligns with mounting global environmental warnings. A new report by the United Nations University Institute for Water, Environment and Health projects that data center power and water consumption will double by 2030 to sustain the AI boom. The report warns of severe strain on land resources and mountains of electronic waste.
“The public debate still often treats AI as software, but AI is also physical infrastructure,” said Kaveh Madani, the institute’s director.
Political responses to the crisis remain deeply fractured. While President Donald Trump called on developers to cover their own energy costs, and federal lawmakers like Sen. Bernie Sanders have floated national moratoriums, some House Republicans have instead demanded investigations into the opposition, alleging that foreign adversaries are funding anti-data center campaigns.
For the residents of Monterey Park, however, the issue remains local and immediate, establishing a protective precedent that other communities across the nation may soon follow.
