Coachella could extend its data center ban through mid-2027

Coachella's city council is set to decide Wednesday whether to keep its ban on new data centers going for almost another year. If council members advise for it, the extension would run through June 4th, 2027.

The council put the original ban in place last month after residents packed city hall to oppose Stronghold Power's proposed "Coachella Valley Technology Campus," a large data center planned for the city's eastern side. That same night, the council also cut ties with Stronghold's utility deal, a move that killed a planned power center for that part of the city.

That first ban was only ever meant to last 45 days, and it runs out July 19th. Wednesday's vote would tack on 10 months and 15 days, giving city staff more time to finish writing a permanent ban before the temporary one expires.

City staff is highlighted a series of risks involved with current data centers. Staff pointed to how much power these facilities pull, noting a single AI data center can use as much electricity as 100,000 homes, and some projections put data centers at 12% of the country's electricity use by 2028. Water is also a concern in the desert, where staff say AI-related data centers nationwide could need up to 32 billion gallons a year by 2028, adding pressure to a region already dealing with drought. Staff also flagged noise from cooling systems and backup generators, saying residents living near data centers elsewhere have reported sleep problems and headaches, along with air pollution from the diesel generators some facilities rely on.

Another reason the City is discussing extending the ban is to allow staff time to update the city’s zoning codes. The current codes were written prior to data centers becoming commonplace, and do not account for the amount of power, water, and land use required according to the staff report. 

Financially, the city says extending the ban itself won't cost taxpayers anything.

Council was presented with two options for Wednesday’s decision. Option A is to advise for the extension, keeping the ban in place through June 2027 while staff finishes the permanent rules, something that requires a four-fifths vote since it's an urgency ordinance. Option B is to let the ban lapse July 19th, which would open the door to new data center applications while the city is still working things out. Staff is encouraging the council to pick option A. 

The extension isn't the end of this. City staff are already drafting a separate ordinance that would ban data centers permanently, and that proposal goes before the Planning Commission July 18th, then back to the city council for a first reading on August 12th. 

Wednesday's meeting starts at 6 p.m. at Coachella City Hall.