Hundreds packed into Coachella City Hall on a warm May evening. They spilled outside. Signs waved under the lights. “Defend Coachella, no data centers.” “Protect our environment, not tech profits.” The message was blunt. This working-class city in the Coachella Valley had reached a breaking point over plans for a massive computing complex tied to the artificial intelligence boom.
The proposal, known as the Coachella Valley Technology Campus, emerged earlier this year through an agreement signed in February between the city and Stronghold Power Systems. Documents outline a site that could stretch across 450 acres near Avenue 52 and Fillmore Street. Initial phases called for three buildings, each roughly one million square feet. Capacity per facility sat at 90 megawatts. Scaled fully, the project might draw as much as 600 megawatts. That figure equals eight times the current demand of the entire city of Coachella, according to local analysis shared at public meetings.
But on May 27, 2026, the tone shifted sharply. Business Insider reported that after more than five hours of public comment, with nearly every speaker opposed, all four council members signaled support for a temporary moratorium. They directed staff to prepare an emergency ordinance. A special meeting was tentatively set for June 3 to consider the pause and possibly a broader ban on such facilities. The council also voted 4-0 to hire outside legal counsel, at an estimated cost of $10,000 to $25,000, to review the municipal utility development agreement with Stronghold.
Residents from Coachella and across the valley, including Palm Springs, Palm Desert and Cathedral City, filled chambers and joined by Zoom. They cited extreme heat, chronic water scarcity and strained infrastructure already pressing the region. Adriana Suarez, a Coachella resident, spoke directly to the council. “This valley is already facing extreme heat, water scarcity, and infrastructure strain. These data centers do not belong here, and you guys know it.”
Similar concerns echoed in earlier gatherings. Stephanie Ambriz told officials at an April meeting, “We have made it abundantly clear that we don’t want or need this project. You can build a utility without data centers,” as covered by KVCR News. Petitions circulated, one on Change.org started by Vicente Zamora and Jesus Ahkin Gonzalez, gathered hundreds of signatures calling for an immediate halt. Protesters chanted for ordinances banning data centers outright. Some meetings turned tense. One woman was escorted out after a heated exchange. Deputies were present. No arrests occurred.
The project had been positioned as a way for Coachella to launch its own municipal power utility. Stronghold Power Systems would supply the infrastructure. In return, the city stood to gain significant revenue. Stronghold CEO Scott Bailey addressed the May 27 crowd. He pushed back against what he called false information. The development, he said, would employ closed-loop cooling that avoids tapping drinking water supplies. It could generate more than $20 million annually for the city in taxes and fees. “It goes on and on and on about the benefits,” Bailey stated. “They obviously don’t want to hear it, but I’m here for you guys.” Stronghold has maintained that no formal application has been filed. An environmental impact report remains required before any approval.
Yet those assurances failed to calm the room. Speakers worried about air pollution from backup generators, noise from constant operations, and massive electricity draws that could raise rates for residents. The campus location sat close to homes and schools. One analysis shared in meetings projected the power demand over 20 years could overwhelm local grids without new generation sources. And while the city insisted the project had not advanced beyond the initial agreement, the February signing fueled suspicions that decisions were already locked in.
Mayor Frank Figueroa indicated he would back both the moratorium and a more permanent ordinance restricting data centers. Councilmember Yadira Perez cut to the core of the sentiment. “There was not one resident that came, not today, not the other council meetings, not the town hall, in support for the data center.” The Desert Sun detailed how the marathon session ran past midnight. The council could not take a formal vote that night under open-meetings rules because the item was not agendized. But the direction was clear. Staff must return quickly with language for the pause.
This fight in Coachella fits a widening national pattern. Communities from New York to Utah have mobilized against data centers fueling AI training and cloud computing. In Box Elder County, Utah, commissioners approved the Stratos Project backed by investor Kevin O’Leary despite fierce local opposition, as noted in the same Business Insider report. Closer to home, resistance has spread across Southern California. KVCR noted the debate now touches water and energy questions from Imperial County northward.
Recent coverage captures the momentum. On May 28, KESQ confirmed the council’s move toward a moratorium or ban, describing the meeting as dominated by opposition voices. NBC Palm Springs reported the council floating the pause and planning to weigh termination of the utility agreement. The Desert Sun posted video of the overflow crowd and council discussion, underscoring how quickly sentiment hardened. Even California state lawmakers have taken notice. Assemblyman Jeff Gonzalez, whose district includes parts of the region, voted for greater transparency and accountability measures around AI and data center development, citing community questions on impacts to rates and resources.
So what happens next? The June 3 special session will test whether the moratorium passes and how far it reaches. Details remain fluid. Some council members view the pause as a first step toward a permanent prohibition. Others see it as time to study broader utility plans without the data center component. Stronghold has not publicly detailed fallback options. The city continues to stress that no permits have been issued and environmental review lies ahead.
But the protests have already changed the trajectory. Petitions keep circulating. Residents from across the valley show no sign of fading. For a city long seeking economic growth, the episode highlights the tension between revenue promises and quality-of-life fears. Data centers promise jobs and tax base. They also consume power and water at scales that can reshape entire regions. In Coachella, the balance tipped toward caution. The council listened. Now it must decide whether that listening leads to rejection or a renegotiated path forward.
The outcome will echo beyond city limits. As AI demand accelerates, more municipalities face identical calculations. Coachella’s stand, born from packed chambers and late-night testimony, offers one template. Study first. Pause if needed. And above all, residents made clear, do not assume the public will accept tech infrastructure as the price of progress.
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