A developer’s proposal to build a nearly 250,000-square-foot data center in a Monterey Park business park has been officially withdrawn, just ahead of a key ballot measure on banning data centers in the city.
HMC StratCap, the developer behind the project, notified the city on Tuesday that it would not proceed with its plans and would not contest a ballot question that could prohibit data center construction in Monterey Park.
Why the Change of Heart?
The decision to pull the data center proposal came after months of pressure from local residents and community advocates who raised concerns about the environmental impact, energy consumption, and potential health risks of such a large-scale facility.
The parent company of HMC StratCap, DigiCo Infrastructure REIT, expressed that the developer wanted to collaborate with the city to find land uses that were more in line with the community’s needs and values. However, representatives from HMC StratCap have not commented further on the situation.
A Test Case for Local Organizing
The withdrawal of the data center proposal comes just weeks before Monterey Park residents will vote on Measure NDC in a special election scheduled for June 2.
If the measure passes, Monterey Park would become the first city in the region to ban data centers through a public vote. For many residents and advocates who have been organizing against the project, this decision marks a significant victory for grassroots efforts to influence local development decisions.
The Backstory: Public Outcry and City Response
The controversy began when HMC StratCap proposed the data center two years ago and began pushing the project through the city’s planning process.
However, the plans gained public attention only after the data center started appearing on City Council agendas. Many residents expressed frustration that the city had not better publicized the proposal, and hundreds of people attended council meetings in protest.
In response to the growing opposition, the city council approved a temporary moratorium on data center development and placed Measure NDC on the ballot. The council also intends to consider a separate ordinance that would permanently ban data center construction in Monterey Park.
What’s Next for the Community?
While HMC StratCap’s decision to withdraw its proposal is a major win for local activists, groups like No Data Center MPK and San Gabriel Valley Progressive Action say they will continue their fight. The groups are now focused on advocating for Measure NDC and pushing for the city council to adopt the data center ban.
At the same time, organizers have shifted their attention to another potential development: a proposed battery energy storage system in the City of Industry, which they fear could pave the way for future data center projects.
The community’s ongoing efforts to control local development have sparked wider debates on the balance between economic growth and environmental sustainability.
