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Asian-majority city passes US' first permanent data center ban

Created at 6 Jul · 7:35 AM1 source↑ Market-relevant
IN SHORT

Voters in Monterey Park, California, have overwhelmingly approved Measure NDC, establishing the first permanent citywide ban on data centers in the United States. The measure, which passed with 86% of the vote, amends the city's land use framework and can only be reversed by another ballot initiative.

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Key Numbers

23,000-sq.-meterproposed data center size
86%voter support for Measure NDC
45-dayinitial moratorium on data centers
10 months and 15 daysextended moratorium period
$39 millionprice HMC StratCap paid for office complex
247,000-square-footproposed data center size

Who's Involved

Hrag Balian
Monterey Park resident who learned of the data center proposal
Monterey Park City Council
Unanimously voted to submit the data center ban to voters
Measure NDC
Ballot measure to permanently prohibit data centers
Los Angeles County Registrar-Recorder/County Clerk
Provided vote count for Measure NDC
San Gabriel Valley Progressive Action
Local organizing group that rallied support for the ban
HMC StratCap
Investment firm that proposed the data center conversion
Elizabeth Yang
Mayor of Monterey Park who noted developer's litigation threat
Amy Wong
Co-founder of San Gabriel Valley Progressive Action
Khara Boender
State policy director for the Data Center Coalition
Asian-majority city passes US' first permanent data center ban

↳ Why This Matters

Monterey Park's vote sets a precedent for other communities grappling with the environmental and infrastructural impacts of data centers, potentially influencing future regulatory approaches nationwide.

Key facts

  • Monterey Park, California, has become the first city in the US to enact a permanent ban on data centers through a ballot measure.
  • Measure NDC, approved by 86% of voters, amends the city's general plan and land use framework.
  • The ban aims to protect air quality, drinking water resources, and public health.
  • The measure was initiated after residents protested a proposal by investment firm HMC StratCap to convert an office complex into a data center.
  • The ban can only be overturned by a future ballot measure, ensuring long-term protection.

Voters in Monterey Park, California, have overwhelmingly approved a ballot measure to permanently ban data centers, marking the first such prohibition in the United States enacted through a public vote. The measure, known as Measure NDC, received approximately 86% of the vote, according to the Los Angeles County Registrar-Recorder/County Clerk. This outcome follows months of community opposition to a proposal by investment firm HMC StratCap to convert a vacant office complex into a large-scale data center.

City officials stated that the ban amends the city's general plan and land use framework to prohibit data centers citywide. The measure is designed to protect air quality, drinking water resources, and public health, while also mitigating potential impacts on electricity and water rates. The ban can only be reversed by another ballot initiative, giving residents continuing authority over the issue.

Residents and local organizing groups, such as San Gabriel Valley Progressive Action and "No Data Center in Monterey Park," led protests against the data center proposal, citing concerns over increased electricity demand, noise from cooling equipment and backup generators, and limited local economic benefits. The proposed facility would have been located less than 500 feet from the nearest home and would have consumed three times the electricity of the entire city.

In response to community concerns, the Monterey Park City Council initially passed a 45-day moratorium on data centers in January. This was followed by a unanimous vote in March to extend the moratorium and place the permanent ban on the June 2 ballot. The developer's legal counsel had previously raised the possibility of litigation if the city proceeded with a ban.

The Data Center Coalition, an industry trade group, expressed disappointment, stating the vote signals the area is closed for business and deprives residents of jobs and investment. Meanwhile, SGV Progressive Action is now focusing on similar efforts in other cities, including the City of Industry, which is offering fast-tracked permitting and tax incentives for data centers.

Frequently asked questions

Measure NDC is a ballot measure approved by Monterey Park voters that permanently bans the construction and operation of data centers within the city limits.

Residents raised concerns about increased electricity demand, noise pollution from equipment, and limited local economic benefits, as well as potential impacts on air and water quality.

Monterey Park is believed to be the first city in the US to implement a permanent ban on data centers through a ballot initiative.

The developer, HMC StratCap, withdrew its proposal and stated it would not engage in the ballot fight. The developer's legal counsel had previously suggested the possibility of litigation.

What Happens Next

01The ban can only be overturned by a future ballot measure.
02Local organizing groups plan to target data center proposals in other cities.

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Cadence

How It Developed

Residents protested a proposed data center conversion of a vacant office complex.
The Monterey Park City Council passed a 45-day moratorium on data centers.
The city council extended the moratorium and placed a permanent ban measure on the ballot.
Voters overwhelmingly approved Measure NDC, enacting the first permanent data center ban in the US.
The ban is designed to protect air quality, water resources, and public health.

Sources

T1
How an Asian-majority city passed the US' first permanent data center banNikkei Asia
T2
In first, California city overwhelmingly votes to permanently ban ...theguardian.com
T2
In a first for the country, voters in Monterey Park ban data centerslatimes.com
T2
Voters in Southern California city favor permanent data centers banusatoday.com

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