A city in California just banned data centers. More may follow

While AI proponents insist that the future of AI is inevitable, one California city is pushing back. It may not be the last.

Earlier this month, residents of Monterey Park in Los Angeles County voted overwhelmingly to permanently ban data centers in the city, becoming the first US city to do so. The move followed months of public backlash against the planned data center. In addition to local protests, members of the city council voted unanimously in March put a ban before voters and extend the existing moratorium on data centers. Weeks later, the developer withdrew its plans for the center.

• Elizabeth YoungMayor of Monterey Park: “(Voters) were extremely happy that all their hard work and effort paid off. They spent a lot of time knocking on doors, putting up signs, fundraising, campaigning. So it was a lot of community effort.”

The vote points to growing skepticism among many Americans about the projects. Seven in 10 Americans polled oppose data centers, according to March Gallup poll. But for Khara Boender, director of state policy at the Data Center Coalition, the Monterey Park ban sends “a signal that the area is closed for business.”

Data centers are the backbone that drives AI technology, and California is home to at least 287 facilities. In 2024, data centers supported more than 665,000 jobs in California and generates $14.1 billion in state and local taxes, according to the coalition.

Meta, Microsoft, Amazon and Alphabet are expected to spend in total $700 billion for data centers worldwide by the end of this year — or nearly double the cost of California’s entire state budget.

• Peter Leroy-MuñozBay Area Council senior vice president and general counsel: “Data centers make modern life possible. … (They) are truly the platform for play, productivity and potential in the 21st century economy. And shutting them out of these opportunities does a disservice to residents, businesses, research and entrepreneurship.”

Driven by public concern about their huge energy use and environmental impact, cities and counties across the state have implemented or are trying to implement moratoriums on data centers while local governments figure out how to regulate them.

The Imperial County Board of Supervisors is considering placing a temporary moratorium on data center projects after the board faced criticism from residents over the progress of a proposed data center.

San Jose council members voted last week for the city manager draft guidelines for data centers. But because the city is home to at least 40 centers — the most of any in California second only to Santa Clara — critics are skeptical. In August 2025, the city touted a partnership with Pacific Gas & Electric Company that would make data center development even easier.