Coachella City Council Terminates Stronghold Power Data Center Agreement

The Coachella City Council unanimously voted on June 5, 2026, to terminate its development agreement with Stronghold Power and impose a 45-day temporary moratorium on all data center developments. This action reverses a February approval for the Coachella Valley Technology Campus, a project spanning between 240 and 450 acres.

The decision followed a special session on June 4 where council members weighed the massive power and water requirements of AI data centers against environmental risks. Specifically, officials cited concerns over air pollution from diesel backup generators in a region already struggling with air quality standards. The move was supported by months of public protests from residents who feared health risks and rising electricity rates.

Mayor Dr. Frank Figueroa stated the council is working to ensure any permanent ban is implemented legally, while the city acknowledges that terminating the agreement may trigger costly litigation. Stronghold Power expressed disappointment, claiming the project provided substantial benefits and leading-edge environmental protections. The city of Indio has established a similar moratorium, following a trend seen in Monterey Park, the first U.S. city to permanently prohibit new data centers via voter ballot. The Coachella City Council will reconvene on July 9 to discuss a long-term ban.