Imperial County Data Center Stalls Amid Legal, Legislative, and Community Pushback

In April 2026 the Imperial County Board approved a one-million-sq-ft AI data center. In May the board imposed a 45-day moratorium. Developer Sebastian Rucci sued for a restraining order; the City of Imperial filed a CEQA suit over the site’s proximity to homes.

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The facility promises 2,500 construction jobs, 100 permanent jobs, $72.5 M in one-time sales tax and $28.7 M in taxes. Imperial County, dependent on the Colorado River, faces chronic water shortages and pediatric asthma rates, so the projected 260 M gal/year water draw and electricity demand raise major concerns.

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Senator Steve Padilla’s three bills would expand the county air-pollution board, ban CEQA exemptions for data centers, and require upfront energy payments. The developer says the project meets zoning; the county board cites health concerns for the moratorium; the City of Imperial demands CEQA review because the site is near homes; the irrigation district defends its water rights.

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Local farmers and home-builders criticize the project. Lawrence Cox warns California-specific rules could hurt agricultural competitiveness. Michelle Hollinger cites high pediatric asthma rates, calling hidden health costs “expensive.” Residents say the “exempt” status bypasses public input and could degrade air quality, strain water, and raise energy prices.

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• “The county wrote a moratorium after one year of the approvals. Moratoriums are not there as a planning tool. They’re there for very specific emergencies.” — Sebastian Rucci, developer

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• “They can’t just come in and claim that they’re exempt and have a right to build the biggest data center in the state without any oversight,” — Steve Padilla, State Senator

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• “I think maybe it’s a good idea to have some people with professional training and credentials in environmental mitigation science,” — Steve Padilla, State Senator

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• “It is expensive when Imperial Valley has some of the highest pediatric asthma rates in California. It is expensive for families to take off work, paying for emergency room visits and watching children struggle to breathe. I do not want to hear that public health is too expensive, while rubber-stamping data centers that dodge CEQA.” — Michelle Hollinger, vice president, Victoria Homes

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• “We’re losing our ability to compete because of California specific rules and regulations,” — Lawrence Cox, owner, Coastline Family Farms

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• “This process lacks the essential safeguards necessary to ensure the public is protected and that the impacts caused by the Hyperscale AI Data Center are mitigated,” — City of Imperial, legal filing

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The developer claims water will come from 160 acres of farmland with existing rights, while the City of Imperial says the project lacks water-use accounting. Rucci argues a CEQA exemption based on ministerial approval, but the city’s lawsuit says proximity to homes and regional air-quality impacts require full CEQA review. Energy-use and mitigation plans remain undisclosed.

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Padilla’s bills await Assembly votes. The referendum petition must meet filing deadlines to appear on the ballot. Court hearings on the restraining order and CEQA challenge are set for later 2026. The zoning commission will issue recommendations that could shape approvals or further moratoria.

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