Monterey Park Voters Approve Ban on New Data Centers

Voters in Monterey Park, California, approved a measure banning new data center construction, with 86 percent in favor and 14 percent opposed. The city becomes the first in the nation to enact such a prohibition by public vote. Large data complexes have expanded rapidly in recent years alongside the growth of artificial intelligence systems.

The Trump administration has described faster construction as essential to maintaining a lead over rivals such as China. Communities cite heavy water and electricity demands as the main reasons for opposition. S.

Data centers collectively use nearly 450 million gallons of water daily, according to one estimate. Researchers at the University of California, Riverside, calculated that generating a 100-word AI response consumes roughly one bottle of water. Several cities in Georgia approved similar bans earlier this year.

More than 60 active data center moratoriums exist nationwide, according to a tracker maintained by Interconnected Capital. Denver approved a one-year moratorium last month, while Oklahoma City extended its pause through the end of the year. Tulsa also halted new projects, and Huron County, Michigan, approved a three-year moratorium at the end of May.

Electricity prices have increased in multiple states where data centers are expanding. S. Energy Information Administration reported.

Some states now require data centers to disclose usage or sign long-term supply contracts to limit taxpayer exposure.