Local & Community
Coachella Data Center Ban Vote Tonight; Palm Springs Weighs Moratorium
Data centers are once again at the center of debate across the Coachella Valley, with both Coachella and Palm Springs considering action Wednesday night.
In Coachella, the City Council is expected to vote on whether to permanently ban data center development citywide.
The vote comes after months of debate surrounding a proposed technology campus that would have included six large data centers on about 240 acres.
The project was tied to an agreement with Stronghold Power Systems as part of the city's plans to create its own municipal utility.
But the proposal faced growing opposition from residents concerned about energy use, heat, environmental impacts and water consumption.
In May, the City Council unanimously voted to place a temporary ban on data centers and terminate its agreement with Stronghold Power.
The city later extended that moratorium to two years while officials worked on a permanent ordinance.
Stronghold Power has estimated Coachella could lose as much as $54 million in potential revenue following the termination of the agreement.
Mayor Steven Hernandez said the city is now responding to what residents have made clear they want.
Meanwhile, in Palm Springs, City Councilmembers are considering a separate temporary moratorium.
The council is expected to vote on a 45-day pause on accepting or processing applications and permits for new data centers.
If approved with the required four-fifths vote, the moratorium would take effect immediately and remain in place through Oct. 10.
Residents have raised concerns about the amount of water and energy needed to operate data centers in the desert, as well as the challenges of operating large facilities during the region's extreme summer heat.
There are also broader concerns about the technology and infrastructure supporting artificial intelligence and surveillance systems.
Both cities' actions come as communities across the region continue debating how data center development could affect the future of the Coachella Valley.
By: NBC Palm Springs
August 26, 2026
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