Data Centers vs. Communities: California Weighs AI’s Costs in Imperial Valley and Beyond
IMPERIAL, Calif. — Fernanda Camarillo keeps asthma medication close at hand. Whenever the wind picks up in Imperial County, a farming community near the Mexican border already burdened by poor air quality, she braces for an attack. Her anxiety spiked when she learned of plans to build a massive data center near her home. “A lot of people in the county are asthmatic,” Camarillo said, fearing the project would worsen pollution. “I’ve been anxious — so many of us are voicing our concerns.”
The rapid expansion of data centers, fueled by the global boom in artificial intelligence, is drawing increased scrutiny from lawmakers and residents across the country. Concerns are mounting over potential strains on power grids, rising utility bills, and negative health and environmental impacts. In California, legislators are debating how to balance innovation with the need to protect communities and natural resources.
State Sen. Steve Padilla (D-San Diego) believes a compromise is possible. “We can be supportive of innovation and a technology that is needed but also protect our communities and our health and our environment,” Padilla said. “We can do both at the same time.”
The California Legislature is considering several bills to address these concerns. Proposals include prohibiting data centers from being exempted from the state’s stringent environmental review law, known as CEQA, and imposing modern tariffs on major energy users that could strain power supplies. Assembly Bill 2619, from Assemblymember Diane Papan (D-San Mateo), would require data center owners to estimate expected water usage and sources before receiving a business license. Another bill, Assembly Bill 1577, by Assemblymember Rebecca Bauer-Kahan (D-Orinda), would require monthly reporting of water and fuel consumption and energy efficiency to a state commission.
The debate is particularly heated in Imperial Valley, where Imperial Valley Computer Manufacturing plans to build a 950,000-square-foot data center designed for advanced artificial intelligence and machine learning. The county granted the project an exemption from CEQA in 2025, a move that has sparked fierce opposition from residents.
“It feels like it’s us against the county,” Camarillo said, expressing a sentiment that many residents feel their concerns are being dismissed.
Sebastian Rucci, CEO of Imperial Valley Computer Manufacturing, maintains the project will have minimal environmental impact, citing studies commissioned by his company. He warned that requiring a full CEQA review could lead him to withdraw the proposal. “CEQA leaves you in an unknown territory,” Rucci said, alleging that environmental groups sometimes employ the law to delay projects and extract financial settlements.
The proposed data center would be located adjacent to farmland and the Victoria Ranch housing community. Residents worry about noise, pollution, and potential increases in utility bills. Power companies often seek to recoup the cost of grid upgrades needed to support data centers by raising rates for all consumers.
Gina Snow, a local resident, said she isn’t necessarily opposed to a data center in the county, but believes a CEQA review is essential. “Clearly we understand that there is economic development and the potential for that to be positive for the county, but at what cost?” she asked.
Daniela Flores, executive director of Imperial Valley Equity and Justice, a nonprofit focused on social and environmental equality, said the community has a history of being exploited. “We became a sacrifice zone,” she said, adding that industries often promise benefits that never materialize. Flores fears the data center could exacerbate existing problems, including poor air quality, high poverty rates, and inadequate infrastructure. She highlighted the risk of power outages during the valley’s brutal summers, potentially endangering vulnerable residents.
The city of Imperial has also challenged the county’s decision, filing a lawsuit to halt the project and arguing that the CEQA exemption was improper.
State Senator Padilla has introduced Senate Bill 887, which would ban data centers from receiving CEQA exemptions. He also introduced Senate Bill 886, which would direct the Public Utilities Commission to create an electrical corporation tariff to cover the cost of data center-related grid upgrades.
The facilities themselves are increasingly energy intensive. Data centers accounted for about 4.4% of the nation’s total electricity consumption in 2023, up from 1.9% in 2018, according to a report provided to Congress from the Lawrence Berkeley National Laboratory. Researchers project that figure could reach 6.7% to 12% by 2028. Eric Masanet, a professor at UC Santa Barbara specializing in sustainability science, described data centers as “the brains” of the internet, essential for processing online transactions, streaming media, and supporting the digital world.
Robert Gould, a pathologist with San Francisco Bay Physicians for Social Responsibility, warned that the growth of data centers could lead to a shift back toward fossil fuels as facilities demand a reliable power supply. Cornell University researchers estimated that AI growth could add 24 to 44 million metric tons of carbon dioxide to the atmosphere annually by 2030 without significant changes. Gould’s organization has observed a trend of these facilities being located in communities least equipped to defend themselves.
As lawmakers continue to debate new policies, Camarillo hopes the priority will be protecting communities. “Innovation is important, but innovation for the sake of innovation has never really been something that hasn’t had negative impacts,” she said. “Think about human lives.”