US Residents Begin Rejecting Data Centres Amid Soaring Electricity and Water Bills
Opposition to the construction of data centres supporting artificial intelligence (AI) is growing in the United States. The latest development saw residents of Monterey Park, California, decisively approve a ban on data centre development in their area through a vote held on Tuesday (2/6). As of Wednesday (3/6) local time, approximately 86% of the counted votes supported the prohibition policy, making Monterey Park one of the first cities in the US to ratify an anti-data centre referendum.
The decision comes amid rising public concern over the environmental impact of AI infrastructure. Data centres, which form the backbone of internet services and AI development, are known to require massive amounts of electricity and water to operate thousands of servers.
Monterey Park Mayor Elizabeth Yang stated that the vote’s outcome could potentially encourage other cities to take similar steps. ‘Many other cities that are facing data centre development proposals will likely follow this lead. Data centres have a bad reputation in many areas across the country, especially those built in residential neighbourhoods,’ she said, as quoted by Politico on Friday (5/6/2026).
The city government stated the policy aims to protect air quality, drinking water resources, and public health. Additionally, the ban is expected to prevent increases in electricity and water rates for local residents.
The referendum originated from public opposition to a data centre development plan by Australian company DigiCo Infrastructure REIT. Residents assessed that the facility would significantly increase electricity and water consumption and cause air pollution from the use of backup diesel generators.
‘We do not want any data centres built in our area,’ said San Gabriel Valley Progressive Action volunteer Amy J. Wong.
Activist groups then urged the city council to impose a moratorium on data centre construction and put the prohibition proposal on the ballot. After that step was taken, DigiCo ultimately withdrew its project proposal.
On the other hand, the data centre industry warned that the ban could impact the local investment climate. Data Center Coalition State Policy Director Khara Boender said such a policy risks hindering incoming investment and job creation. According to Boender, a data centre ban could send a signal that a region is closed to large-scale economic development projects.
Rejection of data centre construction is not only occurring in California. Several community groups in Ohio, Georgia, Maryland, and Utah are also beginning to campaign for similar restrictions amid the rapid development of AI infrastructure across various regions of the United States.
Meanwhile, the New York State legislature is reportedly considering a one-year moratorium on new large-scale data centre construction. For environmental activists, the victory in Monterey Park serves as an important momentum to broaden the rejection movement against data centre projects across various regions of the United States.