Imperial County halts new data centers amid legal battles over water and jobs

Imperial County has paused all new data centre projects for 45 days after reversing its earlier approval for the Imperial Data Center. A public commission will now review zoning rules for such facilities. The decision has sparked legal action and debate over water use, jobs, and environmental impact. In April, developers secured approval to combine several land parcels for the nearly one-million-square-foot Imperial Data Center in rural Southern California. The project, designed for advanced AI and machine learning, would become the state’s largest data centre once completed. It promises 2,500 construction jobs, 100 permanent roles, and significant tax revenue: a one-time boost of $72.5 million and $28.7 million annually.

Water use remains a major concern. Imperial County relies solely on the Colorado River, already under strain, and the centre’s developer has sued the Imperial Irrigation District for 260 million gallons of water yearly. The City of Imperial has also filed a lawsuit, arguing the project lacks safeguards for air quality, energy demand, and other environmental impacts.

Last week, the county board imposed the moratorium and formed a commission to advise on zoning. Developer Sebastian Rucci is now suing to block the moratorium, claiming the county failed to prove an emergency or specify harms. Meanwhile, local voters are collecting signatures for a referendum to ban data centres entirely. State Sen. Steve Padilla has introduced bills to tighten environmental rules for such facilities across California. The moratorium halts progress on the Imperial Data Center for now. Legal challenges from both the developer and local government will shape its future. The outcome will determine whether the project moves forward or stalls under stricter regulations.