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Coachella axes data center project, considers future tech campus ban

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Last updated: June 6, 2026 1:41 am
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Published: June 6, 2026
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The City of Coachella is moving to ban data centers following public outcry in a massive U-turn just months after unanimous approval from lawmakers.

The city in Riverside County imposed a 45-day temporary ban on data center developments Thursday and voted unanimously to terminate its agreement with Stronghold Power, the company behind the initial proposal.

Protests from residents KPBS Public Media

The decision comes after months of public outcry and protests from Coachella residents, citing everything from environmental concerns to higher electricity rates. Before the city’s meeting on Thursday, hundreds gathered outside holding signs and chanting, “No Data Centers!”

Coachella City Council KPBS Public Media

“I feel like the council did exactly what the mayor said and course corrected. I am extremely excited that the moratorium is now in place and we’re on our way to a ban,” resident James Rodriguez told NBC Palm Springs.

Stephanie Ambriz speaking at a public meeting about a data center moratorium. KPBS Public Media

Along with Coachella, the City of Indio also unanimously decided to establish the moratorium.

Back in February, the council approved an agreement with Stronghold Powers to build the “Coachella Valley Technology Campus” that was set to span up to 450 acres of land. However, this moratorium effectively shuts the door on any possible plans.

KPBS Public Media

“Stronghold Power Systems is disappointed by the city council’s decision to terminate our development agreement. We came to Coachella with a project that would provide substantial benefits to the city, built around leading-edge environmental protections,” a Government Affairs Advisor for the company said.

The backlash over data centers isn’t confined to the Coachella Valley. In a decision that could reverberate across California, voters in Monterey Park approved a ballot measure permanently prohibiting new data center development within city limits.

The vote made Monterey Park the first city in the nation to enact such a ban through a direct vote of the people, highlighting growing concerns about the industry’s impact on local communities.

The Coachella City Council will reconvene in July to determine next steps.

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