California city residents overwhelmingly support a data center ban.

Voters in Monterey Park, located just beyond Los Angeles' metropolitan area, have made history with their decision.

Monterey Park residents seem to have resoundingly endorsed a prohibition on data centers, marking a significant milestone as they become the first US city where voters have successfully implemented a permanent ban on these types of facilities.

A measure dubbed Measure NDC garnered significant support from California city residents, with over 86% of votes cast in its favor by Wednesday's unofficial tally. This outcome stemmed from intense community resistance to a proposed data center project near downtown Los Angeles' eastern edge.

Co-founders like Steve Kung expressed optimism about the proposed data center ban's potential impact on local communities.

Growing unease about data centers nationwide has become a pressing concern for many Americans. Critics argue that these facilities generate relentless noise pollution, inflate electricity costs due to their substantial energy demands, offer limited well-compensated employment opportunities, and exacerbate existing water scarcity issues, which is critical for cooling the equipment.

Supporters argue that these facilities generate significant tax income for local governments, create employment opportunities, and address concerns over noise levels and energy costs as largely unfounded.

Monterey Park has made history by becoming the first city in California to implement a permanent ban on data centers through a ballot measure, reflecting a long-standing tradition of civic engagement among its residents.

In January, Monterey Park residents made their voices heard at a City Council meeting, where hundreds of concerned citizens gathered to express their opposition to the proposed 247,000-square-foot data center. The meeting's sheer number of speakers ran well into the night, with the clock striking midnight before the discussion finally subsided. As a result, "No Data Center" yard signs began popping up in neighborhoods that have historically been home to Asian American residents and Chinese immigrants in Los Angeles.

Artificial intelligence innovation has its epicenter in Silicon Valley, yet the infrastructure supporting this growth is often situated outside of California's borders. Data centers, crucial to AI development, frequently locate in less populous areas such as Virginia, Michigan, Ohio, Wisconsin, West Virginia, and Texas due to lower land costs.

Monterey Park's selection as a proposal site by HMC StratCap, an Australian-owned investment firm, was unexpected last year. The proposed data center, roughly equivalent in size to four football fields, posed concerns due to its proximity to a park where youth softball games are held on weekends. Nearby homes, valued at over $1 million, also raised issues about the project's potential impact.

Residents of Monterey Park, a predominantly middle-class community, are not likely to be swayed by promises of revenue from data centers, which often prioritize rural and economically disadvantaged areas in their siting decisions due to desperation for financial gain. The city's dense housing stock sets it apart from typical target locations.

A data center project had significant financial implications for the city, with estimated annual tax revenue ranging from $5 million to $7 million. However its potential benefits were not enough to sway Vinh T. Ngo, a local councilman opposed to the plan, who cited concerns about the site's suitability in his district.

Union representatives at City Council meetings this year argued that a data center would bring much-needed employment opportunities, as reported by local news outlets. However their voices were drowned out by opposition from the Council, which had already made up its mind against the project. The measure was subsequently added to the ballot for the statewide election on Tuesday in March.

Following this development, HMC StratCap officially informed the city of its intention to cancel the project.

Research assistance was provided by Susan C. Beachy, with Bernard Mokam contributing the reporting.