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Coachella considers moratorium on data centers as community pushes back against proposed tech campus

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A proposed project aims to build six data centers in Coachella. It's fueling debate over energy use and water concerns across the Coachella Valley.
Residents crowd the hallway outside Coachella City Hall during a Wednesday, May 27, 2026 council meeting as tensions flare over a proposed tech campus that would build six data centers on 450 acres.<br>
Anthony Victoria
Residents crowd the hallway outside Coachella City Hall during a Wednesday, May 27, 2026 council meeting as tensions flare over a proposed tech campus that would build six data centers on 450 acres.

It was a contentious night of shouting and frustration at the city council meeting in Coachella on Wednesday as residents pleaded with the council to consider a moratorium on data centers.

After hours of public comment, the council voted to hold a special meeting on June 3 to consider a pause on data centers or a permanent ban.

What ignited debates around data centers and the push for a moratorium in the Coachella Valley is a proposal by Stronghold Power Solutions Inc. The Riverside-based company has proposed building the Coachella Valley Technology Campus, a project featuring six data centers across 450 acres of land.

In February, Coachella's City Council approved an agreement with Stronghold Power Solutions that gives the company responsibility for developing and constructing electricity infrastructure throughout the Coachella Valley region. The data center campus would serve as the financial anchor for a future city-run utility agency.

But residents since April have rallied against the agreement. Hundreds held signs and chanted outside city hall to protest Stronghold Power Solutions and urge the council to oppose data center projects.

Jose Arrendondo, 21, said he's not surprised to see large opposition to data centers. He prefers the city to invest in parks and amenities like drinking fountains.

"I know data centers mean more surveillance," said Arrendondo. "I just don't want any of that stuff. I don't want a smart city. I would prefer a garden or like a cool park."

Stephanie Ambriz, who lives in Coachella, said data centers are harmful to water resources in rural areas like the Coachella Valley.

"We're already living in this time where the city of Coachella needs to address our drinking water situation," said Ambriz, "and they're introducing data centers during this time. It feels tone deaf. It's enraging."

But Stronghold Power Solutions said the data centers will rely on thermal power that transfers energy through non-potable water. Scott Bailey, Stronghold's CEO, claims people are spreading false information about the project.

"Yes, it takes water to charge it, that's coming out of the canal, that's non-potable. We're not using drinking water. "

The council eventually voted 4-0 to schedule a special meeting next Wednesday to discuss a potential moratorium. Councilwoman Denise Delgado said she's concerned about water pollution. Delgado said people's public comments over the last few weeks have compelled her to do her own research about the environmental impacts of data centers.

"And it takes a lot of commitment to be continuously showing up to these meetings…and it shows how against this project people are."

Coachella's council also voted to do a third-party review of the proposed utility agreement with Stronghold Power Solutions.

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