In first, California city overwhelmingly votes to permanently ban datacenters

Voters in Monterey Park, California, approved a ballot measure Tuesday to permanently ban data centers within city limits, making it the first municipality in the United States to enact such a prohibition through a direct vote [1][2]. The measure, known as Measure NDC, passed with 86.3% support from more than 7,000 votes counted, according to early returns [1]. The result amends the city's land-use framework to prohibit data centers citywide, a restriction that can only be repealed by another citywide vote [2]. The ballot language stated the ban was necessary to "protect air quality, drinking water resources, and public health" and to "prevent impacts to electricity and water rates" [1][4]. The vote follows months of organized opposition to a proposed 247,000-square-foot facility from developer HMC StratCap [1][2]. The Monterey Park City Council unanimously approved a 45-day moratorium in January, later extended it, and advanced the permanent ban to the June ballot [2]. The developer withdrew the project in March, but city officials continued pursuing the ballot measure, arguing a voter-approved ban would be harder to reverse than a council ordinance alone [2]. "[This] shows unequivocally that residents in Monterey Park do not want datacenters in their community," said city councilmember Jose Sanchez, who called the result a "landslide victory" [1]. Sanchez added, "We hope that other communities will use the model set by residents here in Monterey Park as inspiration to stop data centers from encroaching in their backyard" [1]. Local organizers said the council was receptive to their concerns. Amy J Wong, co-founder of San Gabriel Valley Progressive Action, noted that officials "recognized so many residents are angry, and, if they move forward with the datacenter, they could possibly be voted out" [1]. Grassroots groups printed 10,000 flyers and sent mailers in English, Chinese, and Spanish during a compressed two-month campaign [1]. The Data Center Coalition, a trade association, opposed the measure. Khara Boender, the group's director of state policy, said it would "deprive local residents of the opportunity to compete for jobs and investment" and cause the area to "relinquish substantial long-term economic investment, high-wage jobs, and critical tax revenue to neighboring areas or other states" [1]. Monterey Park's action is the most forceful in a series of local ballot measures targeting data center development. In Port Washington, Wisconsin, voters approved a measure requiring voter approval before officials can offer tax incentives to developers [1]. Augusta township, Michigan, will vote in August on rezoning 500 acres for a proposed data center, and Janesville, Wisconsin, is expected to vote in November on requiring voter approval for any data center project costing more than $450 million [1]. Nationally, seven in 10 Americans oppose the construction of AI data centers in their local areas, according to a Gallup poll [1]. At least a dozen states are considering moratoriums on data center development this legislative session, though none have been signed into law [1].