Palm Springs council to consider temporary ban on data centers amid regional push

Palm Springs could temporarily halt data center development beginning next week as city officials weigh concerns over the facilities’ heavy electricity and water demands, limited long-term employment and potential impacts on local infrastructure.

At its next regular meeting on Aug. 26, the City Council will consider an urgency ordinance imposing a 45-day moratorium on accepting, processing or approving applications, permits, entitlements or other approvals related to data centers while the city studies how — or whether — they should be allowed under its ongoing zoning code update. Approval requires a four-fifths vote and would take effect immediately.

The proposal comes as other Coachella Valley cities take similar steps. Indio adopted a 45-day moratorium June 3, extended it for 90 days July 15 and directed staff to prepare an ordinance permanently banning data centers in all zones. Coachella extended its moratorium in July and on Aug. 12 gave initial approval to an ordinance permanently banning data centers, with a second reading expected Aug. 26.

In documents prepared for the council, city staff cite many of the same concerns driving the regional and national debate: Data centers can operate around the clock and consume significant amounts of electricity, while some facilities use water-intensive cooling systems.

City staff also pointed to potential air pollution from diesel or natural gas backup power and questions about whether local water and electricity supplies could accommodate the facilities without affecting availability or costs.

The proposed ordinance also identifies potential strain on electrical infrastructure, including substations, transformers and transmission systems, and warns that expansion costs could be shifted to residents and existing businesses. It raises concerns about water supplies, noise, air quality, heat, fire risks and hazardous materials associated with batteries, fuel storage and other equipment.

Employment and land use are also part of the city’s review. Data centers are generally highly automated and may provide relatively few permanent jobs after construction, while requiring substantial buildings, equipment and supporting infrastructure. Palm Springs has limited developable land available for employment-generating uses, according to city staff.

Palm Springs currently has no specific zoning definition or regulations for data centers. Because uses not specifically permitted by the city’s zoning ordinance are generally prohibited, city staff says data centers arguably are already barred, but the moratorium would remove uncertainty while permanent rules are considered.

The ordinance defines data centers broadly to include server farms, artificial intelligence training or processing, cloud computing, digital storage, email servicing and similar uses.

If adopted, the initial moratorium would expire Oct. 10. The city has scheduled a progress report for Sept. 9 and an extension ordinance for consideration Sept. 30.

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