• Coachella City Council considers halting Stronghold Power Systems' data center development.
• Hundreds of residents showed up to protest the proposal at a meeting on Wednesday night.
• Residents voice concerns over environmental impact and proximity of data centers to homes.

A mass outpouring of data center opponents has prompted the California city of Coachella to consider a moratorium on development of the facilities there.

It's the latest example of community backlash tempering local authorities' acceptance of data centers — which are being built across the country to accommodate the rise of AI.

After hundreds of people showed up to protest at the Coachella City Council meeting on Wednesday evening, all four council members signaled support for a temporary halt to Stronghold Power Systems' proposal so the city can study the issue further.

They also voted 4-0 to hire outside legal counsel to review an agreement for a city-controlled utility to provide power for the project.

Planning documents show the Coachella Valley Technology Campus would span up to 450 acres and eventually include six data centers. The initial phase of the project would include three data center buildings, each about 1 million square feet, with a capacity of 90 megawatts per facility, Stronghold has said.

Over the course of the five-hour meeting, residents voiced concerns about water use, air pollution, energy demands, and the project's proximity to homes and schools. Protesters gathered outside city hall, holding signs with slogans like "Defend Coachella, no data centers" and "Protect our environment, not tech profits."

"This valley is already facing extreme heat, water scarcity, and infrastructure strain," Coachella resident Adriana Suarez told the council. "These data centers do not belong here, and you guys know it."

Stronghold CEO Scott Bailey defended the proposal during the meeting and said that opponents were spreading "false information." Bailey said the project would use a closed-loop cooling system that would not tap the city's drinking water and that the development could generate more than $20 million annually for the city.

"It goes on and on and on about the benefits," Bailey said. "They obviously don't want to hear it, but I'm here for you guys."

Mayor Frank Figueroa said he would support a moratorium and a more permanent ordinance on data centers.

"There was not one resident that came, not today, not the other council meetings, not the town hall, in support for the data center," Councilmember Yadira Perez said.

The council could vote on a moratorium at a special meeting tentatively scheduled for June 3.

The turn of events in Coachella has played out in communities across the country, though other data centers have been approved over local protests.

County commissioners in Box Elder, Utah, recently approved a massive data center known as the Stratos Project — backed by "Shark Tank" personality Kevin O'Leary — despite ferocious opposition.