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Developer pulls Monterey Park data center plan after backlash
Opponents to a planned data center in Monterey Park have spoken out at rallies and City Council meetings over the last several months.
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Developer drops bid to build data center in Monterey Park
Josie Huang reports after resident pushback, a developing its ending its bid to build a data center in the SGV city.
Topline:
A developer that had proposed a nearly 250,000-square-foot data center in a Monterey Park business park has withdrawn its application and says it won’t fight an upcoming ballot question banning data centers in the city.
Why now: HMC StratCap notified the city on Tuesday that it was pulling its proposal to build a data center in a local business park after months of pressure from residents and advocates who raised concerns about pollution, energy use and health risks. The parent company of the developer — DigiCo Infrastructure REIT — said that HMC sought to "work with the City to establish productive land uses" for its Saturn Street property "that are supported by the broader community." Representatives for HMC StratCap have not responded to requests for comment.
Why it matters: For people pushing back on data centers in the region, Monterey Park is shaping up as a test case for how local organizing can stop them. The developer’s decision to withdraw its application comes ahead of a June 2 special election on Measure NDC. If approved at the ballot box, Monterey Park would be the first to ban data centers by public vote. The developer, which had threatened legal action against the city for data center restrictions, now says it will not contest the proposition.
The backstory: The data center proposal had been moving through the city's planning pipeline for two years before it started showing up on the City Council's agendas and coming to the attention of residents, who were outraged the plans had not been well-publicized by the city. Hundreds of people flooded City Hall during council meetings over the last several months, demanding the city heed their concerns. In response, the council approved a temporary moratorium on data center development, put the issue on the ballot and will consider a separate ordinance banning data center development altogether.
What’s next: Members of groups like No Data Center MPK and San Gabriel Valley Progressive Action are celebrating the application's withdrawal, but say they will continue to advocate for Measure NDC and the data center ordinance, which the City Council is expected to vote on in the coming weeks. Meanwhile, organizers are joining the effort to stop a proposal to build a battery energy storage system in the City of Industry, which they see as laying the groundwork for a data center.
Go deeper: How Monterey Park residents pushed back on a data center — and changed the course
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