Monterey Park Becomes First U.S. City to Ban Data Centers in Landmark Vote
In a historic decision, the city of Monterey Park in California became the first in the United States to vote on a permanent ban on data centers, marking a pivotal moment in the national debate over the environmental and community impacts of large-scale technology infrastructure. The referendum, held on June 2, 2026, saw a significant majority of residents approve the measure, reflecting growing concerns about energy consumption, water usage and local quality of life.
Background of the Ban
The proposal to ban data centers emerged after a developer, HMC StratCap, sought to construct a 50-megawatt data center near La Loma Park, a local recreational area. The project sparked immediate opposition from residents, who raised concerns about noise from diesel generators, the facility’s massive energy demands—enough to power every home in the city twice over—and its potential to strain local water resources. The city initially imposed a moratorium, which later evolved into a permanent ban following the referendum.
The No Data Center MPK committee, which campaigned against the proposal, was led by a professional political consultant based in Rancho Mirage, according to state campaign finance filings. The committee received support from environmental and advocacy groups, including the Asian Pacific Environmental Network and SEIU 2015, though none of the donors were residents of Monterey Park itself.
Community Concerns and National Trends
Residents cited the broader impact of data centers on local infrastructure, including fears of rising utility costs and environmental degradation. Data centers require vast amounts of electricity and water for cooling, placing significant strain on regional resources. Similar concerns have prompted other municipalities, such as those in Wisconsin and Michigan, to consider referendums that would require community approval before granting permits or incentives to tech companies.
This development aligns with a national trend of local governments pushing back against the rapid expansion of data centers. According to data from the Hoover’s Markets vs. Mandates conference, 81 rejections or restrictions on data centers were recorded in 2026 alone, compared to 49 in all of 2025. The Monterey Park ban underscores a growing movement to prioritize local interests over corporate expansion in the tech sector.
Implications for the Tech Industry
The ban has been framed as a warning to Big Tech, signaling that community resistance could hinder the industry’s growth in certain regions. California, home to many tech hubs, has seen increasing scrutiny of data center projects due to their environmental footprint. The state’s energy grid, already under pressure from rising demand, faces challenges in balancing technological progress with sustainability goals.
For now, the Monterey Park decision sets a precedent for other cities weighing similar proposals. The ban will remain in effect until a future referendum allows residents to reconsider the policy. As the tech industry continues to expand, the tension between innovation and local governance is likely to intensify, with Monterey Park serving as a focal point for this evolving conflict.