Coachella City Council Floats Moratorium on Data Centers as Community Opposition Grows

The Coachella City Council is considering a moratorium on data centers in the city, a significant shift that comes after hundreds of residents packed council chambers last night to protest a proposed AI data center campus backed by Stronghold Power Systems.

Council members floated the idea during Wednesday night's meeting and are now planning a special meeting to discuss the moratorium, consider halting the data center proposal, and weigh terminating the Municipal Utility Development Agreement the city signed with Stronghold in February. The council could vote on the moratorium as soon as next week. The city is also moving forward with retaining outside legal counsel to independently review that contract.

The proposed development, which would place six data centers on more than 400 acres near Avenue 52 and Fillmore Street, has drawn opposition from residents across the Coachella Valley. If built, it would be among the largest data center developments in California. Wednesday's meeting drew crowds from Palm Springs, Palm Desert, Cathedral City, and beyond, with many joining virtually through Zoom after running out of room inside chambers.

The scene grew tense when Stronghold Power representatives addressed the council, prompting Riverside County sheriff's deputies to be called in for backup. Deputies later escorted company representatives out through a back exit for their safety. No arrests were made.

Residents raised concerns about water usage, air quality, energy demands, and what some described as the city using the project to address its own financial problems. Several attendees signed petitions urging the council to ban data centers in Coachella altogether.

Stronghold has defended the proposal, saying it would bring jobs, infrastructure improvements, and affordable housing to the region, and that the company is not asking for the environmental review process to be skipped or fast-tracked. No environmental impact report has been started and no formal project approval has been granted.

A date for the special meeting has not yet been announced.