Development News for Coachella, California

Coachella Council Faces Intense Public Opposition to Data Center Project, Directs Moratorium and Agreement Review

The Coachella City Council received extensive public comment regarding a proposed municipal utility development agreement with Stronghold Power Systems Inc. The project, intended to provide electrical services to the eastern parts of the city, has faced significant opposition due to concerns about its potential impacts on water resources, energy consumption, air quality, noise pollution, heat generation, property values, and the overall environmental and health well-being of the community. Residents and community advocates expressed strong opposition, citing instances in other communities where data centers have led to negative consequences. Many speakers urged the council to terminate the agreement with Stronghold Power and implement an ordinance permanently banning data center development. Council members acknowledged the community's concerns and expressed a desire for more transparency and research into the project's implications. Ultimately, the council directed staff to bring back an urgency ordinance for a moratorium on new or expanded approvals for data centers and similar high-energy intensity industrial uses, and to explore options for exiting the current agreement with Stronghold. A separate study session on the JPA with IID regarding energy needs and rates was also proposed. A third-party legal review of the existing agreement with Stronghold was approved to assess risks and options for termination, with the explicit instruction that BBK, the city's current legal counsel, be excluded from this independent review process due to perceived conflicts of interest.