California Cities Ban New Data Center Construction Amid Resource Strain Concerns

The growing local resistance to data center expansion in California directly impacts the streaming industry's infrastructure planning, potentially slowing the deployment of critical capacity. As demand for streaming services and AI infrastructure continues to rise, the industry faces increased challenges in securing suitable locations for data centers due to environmental and resource concerns. Streaming companies should anticipate higher costs and longer lead times for new data center projects, and explore distributed edge computing solutions or regions with more favorable regulatory environments.

The trend of local opposition to data centers is expanding beyond the initial reports. Monterey Park, California, further solidified this movement by voting to permanently ban new data center construction within its limits, as reported by Bisnow in June 2026. Exit polls indicated 86% of voters supported the prohibition, following a proposal for a 247,000-square-foot installation. This is believed to be the first permanent citywide ban of its kind, and the developer subsequently withdrew their project application. Semafor (June 2026) noted that nationwide opposition to data centers is increasing, with one pollster finding 71% of US voters oppose a data center near their homes, up from 42% nine months prior. Concerns include water usage, power strain, noise, and air pollution, according to Spectrum Local News (May 2026). Los Angeles County has initiated a 120-day study on the health and environmental impacts of data centers. While some state-level efforts to regulate data center energy and water use in California faced industry pressure and were watered down to a study requirement (CalMatters, December 2025), local actions like those in Monterey Park demonstrate a strong, successful community-driven counter-movement to data center expansion.