Monterey Park becomes first U.S. city where voters permanently ban AI data centers

Monterey Park Voters Approve Historic Data Center Ban

Voters in Monterey Park, California, made history by approving a permanent ban on data centers with more than 86% support in Tuesday's election, marking the first time a U.S. city has enacted such a prohibition through a ballot measure 1

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. The referendum in favor of Measure NDC amends the city's land use plan to "prohibit data centers citywide to protect air quality, drinking water resources and public health; [and] prevent impacts to electricity and water rates" 4

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. The decisive vote in the predominantly Asian American city just east of downtown Los Angeles represents a major setback for the tech industry as it races to build out artificial intelligence infrastructure 2

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Growing Public Backlash Against Data Centers Spreads Nationwide

The first-in-nation permanent data center ban reflects increasing resistance around the country to the warehouses that fuel the AI industry. At least 67 other communities across the nation have passed temporary bans, often lasting a year to 18 months, according to the U.S. Data Center Moratorium Tracker 2

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. The New York legislature recently passed a one-year moratorium on large data centers, while at least three Maryland counties, including Baltimore County, have enacted similar restrictions. "The wave of anti-data center protest has exploded over the last six months," said Miquel Vila of Data Center Watch, noting that "there are demands for moratoriums even in places where there are no planned data centers" 2

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Community Opposition Driven by Environmental Impact and Resource Concerns

The community concerns in Monterey Park took hold in January when hundreds turned up to a City Council meeting to oppose a proposed 247,000-square-foot data center by HMC StratCap, an Australian-owned investment firm. The meeting drew so many speakers that it carried on past midnight 1

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. Residents voiced worries about noise pollution from diesel generators and air conditioning systems, electricity consumption that would have been three times the amount used by the entire city of 60,000 people, and water shortages needed to keep machines cool 2

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. "People felt we were being targeted because this is a predominantly ethnic minority community," said Jose Sanchez, a city council member who pushed for the ballot measure 2

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California City Creates Template as Public Opinion Shifts

Mayor Elizabeth Yang said Monterey Park officials hope others use the city as an example 2

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. The shift in public sentiment is dramatic: polling shows that in Virginia, which hosts roughly a quarter of all data centers in the country, voters comfortable living near such projects dropped from 69% in 2023 to just 35% today 2

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. Nationally, 71% of Americans now oppose having a data center in their neighborhood 3

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. The proposed facility in Monterey Park would have generated $3 million to $5 million per year for local services, but residents wanted broader and more permanent action that could not be reversed by future elected officials 2

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. HMC StratCap abandoned the project several weeks after the City Council voted to add the measure to the ballot 1

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. The industry warns the vote will "send a signal that the area is closed for business," according to Khara Boender of the Data Center Coalition 2

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