Coachella City Council Halts Data Center Project, Cuts Ties with Stronghold Power

Coachella City Council took its most decisive steps yet against a proposed data center project Thursday night, approving a 45-day moratorium on all data centers in the city and voting to terminate its municipal utility agreement with Stronghold Power, the company behind a massive proposed development in the city's eastern corridor.

The votes came after three hours of public comment and followed months of packed council meetings where residents repeatedly raised concerns about the project's potential environmental and health impacts. Cheers erupted outside City Hall after the results were announced.

"I feel like the council did exactly what the mayor said and course corrected," resident James Rodriguez said. "I am extremely excited that the moratorium is now in place and we're on our way to a ban."

The moratorium immediately stops any new data center projects from advancing for the next 45 days, and can be extended up to two years while the council explores long-term options that could lead to a permanent ban. Mayor Dr. Frank Figueroa acknowledged the work isn't over. "It's still a long, continuing road because there are so many different pieces that have to go into it to ensure we do it legally right," he said. "We're gonna cross our T's and dot our I's."

Ending the agreement with Stronghold Power also means scrapping a proposed municipal utility center that would have delivered energy to the eastern part of the city. City officials say the termination carries a high probability of litigation at taxpayers' expense, though the mayor said community support made the decision clear. "Time and time again this evening, you heard residents saying we'll stand with you if you terminate this agreement," Figueroa said. "What price would I put on my mom's life?"

Three of the four council members also addressed a recent op-ed in the Desert Sun from Indian Wells Mayor Toper Taylor, who voiced support for the data center project. Figueroa pushed back sharply. "He has no business telling the city of Coachella and its residents what is good or not," the mayor said. "In his op-ed he speaks about us having a low tax rate community, and essentially, it's appalling to say that 'you people in Coachella are poor.' This is our city, that's their city." NBC Palm Springs reached out to Mayor Taylor for comment but has not yet received a response.

The next public update is scheduled for July 9th at a Coachella City Council meeting, where leaders are expected to continue discussions on a long-term or permanent ban.