Monterey Park moves to ban data centers as it braces for possible lawsuit

Monterey Park voters will decide in June whether to ban data centers citywide, setting up a potential legal battle with the developer behind a proposed project.

The City Council on Wednesday unanimously approved placing a measure on the June ballot that would ask voters to amend the city’s General Plan to prohibit the facilities.

The council, also by unanimous vote, directed staff to begin drafting a city ordinance banning data centers ahead of the June election that could potentially take effect before then. It also extended a 45-day moratorium on data center development to January 2027.

City Attorney Karl Berger said the multi-prong approach would give Monterey Park the strongest legal footing.

“I like the belt, suspenders and girdle approach to most things just to make sure that everything's buckled down,” Berger said.

The council votes come after months of mounting resident outrage over a proposal to build a 250,000-square-foot data center in a business park — a project they fear would bring high energy use, noise and limited economic benefit.

Many said they did not learn about the project until the end of last year through word-of-mouth and social media, and faulted city leaders for failing to properly inform them.

Developer HMC StratCap has threatened litigation over the council’s moves toward banning data centers.

On Wednesday, before the council voted, Bryan Marsh, an HMC StratCap executive, gave public comment to boos from the audience, saying the company purchased the land in December 2024 after the “city provided assurances about the viability of data center development.”

He urged the city to work with the company on finding “alternative land uses” for the property.

“Forcing a ballot proposition with a special election in June 2026 severely degrades our ability to work together,” Marsh said.

The council appeared unmoved. Berger, the city attorney, said the developer currently does not appear to have a legally vested project.

There is an application on file, he said, but no public hearing has been scheduled. Berger added he had been authorized by the council to initiate litigation against HMC StratCap if the company were to file suit.

Opponents of the data center rejoiced over Wednesday’s votes and expressed relief that they had mobilized against the project before HMC StratCap’s application had advanced any further.

“The City Council has listened and is listening,” said Hrag Balian, a resident who helped found the group No Data Center in Monterey Park! “ I feel very optimistic that data centers are going to be banned from Monterey Park in the foreseeable near future.”