Breakdown of Supervisor Manuel Perez's rescinded letter of support for proposed data center

A proposed data center campus in Coachella is facing growing political and community opposition after Riverside County Fourth District Supervisor Manuel Perez officially rescinded his support for the project.

The decision comes just days after a heated town hall meeting in Coachella, where hundreds of residents voiced concerns about the potential environmental and health impacts of the proposed development.

Supervisor Perez had previously sent a letter of support on March 9 to Stronghold Power, the company behind the proposed data center campus. In the letter, Perez said he “offered his strong support for the City of Coachella’s effort to establish the Coachella Municipal Utility Center and advance development of the Coachella Data Center Campus.”

Perez also described the project as a major economic opportunity for the region, stating it could generate approximately $50 million in new revenue for the city through utility operations and local taxes. The letter further noted that the proposal could create ongoing revenue opportunities for the Imperial Irrigation District.

However, following mounting public backlash and unresolved concerns surrounding the project, Perez has now withdrawn that support.

In a statement released by his office, Perez said the proposal still requires significant review, including an Environmental Impact Report, a full California Environmental Quality Act (CEQA) process, and additional community input.

“The project needs a lot of work,” the statement read. “Not to mention concerns about water and electricity. As a result, Supervisor Perez has rescinded the letter through the developer and city manager.”

Questions surrounding water usage have become one of the central concerns among residents. It remains unclear how much water the proposed campus would require or where the supply would come from.

The Coachella Valley Water District stated that no water supply assessment has been submitted for the project.

“A proposed development would have to submit a water supply assessment which would be considered by our board,” the district said in a statement. “CVWD has not received an assessment for this proposed project and has no information about water usage or even if this project is in our service area.”

The Imperial Irrigation District declined to comment on the proposal, citing ongoing litigation.

Stronghold Power defended the project in a statement, saying the development would provide substantial economic benefits without additional costs to residents.

“These projects will bring real benefits to the community at no cost to the residents, including substantial revenue for the city,” the company said. “We are committed to a transparent process and welcome continued community input throughout the environmental review.”

The controversy intensified Monday night during a packed town hall meeting in Coachella, where residents expressed frustration over the project’s potential strain on local resources and possible environmental consequences.

The City of Coachella is currently asking residents to complete a public survey regarding the proposed data center campus. The deadline to participate is Monday, May 18.

City officials and developers have not yet announced when the project could move forward for formal review.