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Coachella Valley Data Centers: Bans, Moratoriums & What Each City Decided

Track Coachella Valley data-center bans, moratoriums, canceled proposals and the decisions still ahead.

Updated October 15, 2026 20 min read By Mark Miller
Conceptual AI-generated illustration of a modern data-center campus in a Coachella Valley desert landscape

Four Coachella Valley cities have acted on data centers in 2026, but they have not made the same decision. Coachella adopted a permanent citywide prohibition. Indio, Desert Hot Springs and Palm Springs are using temporary moratoriums while they study whether to prohibit or regulate future projects.

This living tracker separates adopted law from temporary policy, reconstructs the canceled Coachella proposal and follows what each city does next. It will be updated when ordinances take effect, moratoriums are extended or replaced, and new applications or utility commitments enter the public record.

  • Coachella adopted Ordinance 1231 on August 26, 2026. The citywide prohibition took effect September 25, with limited exceptions for smaller or incidental technology uses.
  • Indio’s temporary moratorium was extended through October 16, 2027. Local reporting confirms a unanimous October 7 vote. Permanent rules remain a separate step.
  • Desert Hot Springs extended its moratorium for nearly two years. The pause gives the city time to study land-use, utility and environmental standards.
  • Palm Springs extended its temporary moratorium on September 30. The pause now runs through August 25, 2028 while the city develops zoning standards; it remains a moratorium, not a permanent prohibition.
  • IID approved a large-load electricity tariff September 15. Schedule LL establishes an application and evaluation process for qualifying large electric loads; applying does not guarantee capacity or service.
  • There is no valleywide ban. These are separate municipal actions, and ordinary on-site server rooms and essential communications systems are generally treated differently from a large stand-alone data center.
City-by-city decision tracker

Where the four cities stand now

The four documented policy actions below are separate from the research gaps in the jurisdiction explorer. Indio updated October 8, 2026 following the reported October 7 vote; other jurisdictions retain their individual source-review dates. A moratorium pauses new approvals; it does not by itself create a permanent ban.

Coachella

Permanent prohibition effective

Ordinance 1231 prohibits data-center uses citywide, subject to defined exceptions for smaller or incidental systems.

Adopted August 26 · Effective September 25

Indio

Moratorium

A temporary pause remains in place while staff prepares a permanent prohibition requested by the City Council.

Extended October 7, 2026 · Through October 16, 2027

Desert Hot Springs

Long-term study

The city extended its interim ban for 22 months and 15 days to study possible regulations and impacts.

Extension adopted July 7

Palm Springs

Extended moratorium

The council extended the temporary pause by 22 months and 15 days while the city writes data-center zoning standards. The action does not create a permanent prohibition.

Extended September 30 · Outside date August 25, 2028

Ban, moratorium and regulation are not the same

Much of the confusion comes from using the word “ban” for every city action. The legal distinction matters because it determines whether a decision has an expiration date and what must happen next.

Permanent prohibition

An ordinance removes the use from the city's permitted land uses without a built-in expiration. A future council or voters can still amend local law.

Interim moratorium

An urgency ordinance temporarily stops new applications or approvals while the city studies longer-term policy. It expires unless extended or replaced.

Project regulation

A city can allow the use subject to locations, size thresholds, utility studies, noise limits, setbacks, permits or other operating standards.

Each city is also defining what counts as a data center. The local actions generally distinguish a stand-alone, server-intensive facility from the ordinary technology rooms used inside offices, schools, hospitals, hotels, public-safety facilities and utility systems.

The Coachella proposal that changed the regional conversation

The debate began with a proposed technology campus connected to Stronghold Power Systems and the City of Coachella's effort to establish a municipal electric utility.

Coachella created the Coachella Municipal Utility in 2019. In February 2026, the city approved a public-private agreement with Stronghold to develop electric infrastructure. City staff later explained that the utility agreement and the technology-campus land-use application were legally distinct, even though the proposed campus represented the large customer load intended to support the new utility.

The development application did not reach approval. The city's June 4 staff report said the initial submittal was deficient, lacked required environmental documentation and had not been resubmitted for review. The council then terminated the utility agreement and paused data-center approvals.

Why the site is described as both 240 and 450 acres

The acreage is not consistent across the surviving public record. Coachella's June 4 planning report described four parcels totaling approximately 240 acres. Local reporting and public descriptions of the broader concept referred to six data centers across as much as 450 acres.

Because the application was incomplete and never advanced through environmental review, there was no approved project description fixing a final campus size. This tracker preserves both figures with their sources instead of treating either one as a constructed or approved footprint.

What each city decided

Coachella: from canceled agreement to permanent prohibition

After extensive public testimony in late May, the City Council adopted an initial moratorium and terminated the Stronghold agreement on June 4. It extended the pause on July 8 while staff prepared permanent legislation.

The council introduced Ordinance 1231 on August 12 and completed adoption on August 26. The ordinance adds a new chapter to the zoning code prohibiting data-center uses throughout the city. Its text includes exceptions for certain small-scale systems serving storage, security, electric or telecommunications functions. The ordinance took effect 30 days after adoption, on September 25.

“Permanent” means the ordinance has no automatic expiration. It does not mean the rule can never change. The mayor has discussed the possibility of asking voters to make the policy harder for a future council to reverse, but a ballot measure had not been adopted as of this update.

Indio: a preventive pause with a permanent ban being drafted

Indio adopted a 45-day moratorium on June 3. Its Planning Commission later voted to recommend a complete prohibition, and the Sustainability Commission also supported a ban. On July 15, the City Council extended the moratorium for 90 days and directed staff to prepare a permanent-ban ordinance.

The October 7 extension carries the temporary pause through October 16, 2027, according to local meeting coverage. City staff previously reported that Indio had received no data-center application, making this a preventive land-use decision rather than a response to a specific project. The moratorium's definition covers facilities primarily used for high-intensity computing, including cloud, colocation, artificial-intelligence, blockchain and cryptocurrency operations, while exempting customary systems incidental to another permitted use.

Desert Hot Springs: nearly two years for study

Desert Hot Springs first adopted an interim moratorium on June 16. On July 7, the council unanimously extended it by 22 months and 15 days, producing the maximum two-year study period allowed through the city's urgency-ordinance process.

The moratorium blocks new data-center and high-intensity-computing applications while staff studies land-use definitions, utility demand, environmental effects and possible regulations. The city reported no pending application when it acted.

Palm Springs: extended moratorium through August 25, 2028

Palm Springs adopted a 45-day urgency moratorium on August 26, then extended it on September 30 by 22 months and 15 days. The city’s municipal and zoning codes did not specifically define or regulate data centers when the pause began.

The temporary rule pauses new data-center applications, permits and approvals while Palm Springs develops zoning standards. Staff identified questions involving permitted locations, land and infrastructure demand, electricity and water, environmental impacts and the definition of a data center. Equipment that is secondary to another permitted use—such as servers supporting a hospital, office or hotel—is excluded from the city’s stand-alone data-center definition. The extension is a study window, not a permanent prohibition, and staff said it can be rescinded when the new zoning rules are adopted.

Jurisdiction explorer · Indio updated October 8, 2026
Compare all nine incorporated valley cities and Riverside County’s unincorporated valley. Dates below describe decisions or pending hearings; a review date does not turn a proposal into law.

10 jurisdictions · 4 documented policy actions · 6 research gaps

Coachella Valley data-center regulatory status. Source dates and review notes remain visible with each jurisdiction.
Jurisdiction Policy status Decision / deadline Next checkpoint Evidence / review
Palm Springs Moratorium through August 25, 2028 September 30, 2026 extension of Ordinance 2134; zoning rules may replace the pause earlier.Adopted September 30, 2026 Watch for adopted zoning definitions and standards, or an earlier rescission. City-filed CEQAnet notice · October 1, 2026Source checked October 7, 2026
Coachella Permanent prohibition · Ordinance 1231 Adopted August 26; effective September 25, 2026. Defined accessory technology uses are exempt.Adopted August 26, 2026 Watch for future amendments; the prohibition has no automatic end date. Adoption reporting · August 26, 2026Source checked October 7, 2026
Indio Extended through October 16, 2027 · Temporary moratorium Council unanimously approved a one-year extension on October 7, 2026, according to local reporting.October 7 decision · October 16, 2027 deadline Watch for permanent zoning rules and the posted signed ordinance. A permanent prohibition is not established here. NBC Palm Springs · October 8 meeting reportReviewed October 8, 2026. Signed ordinance not independently retrieved in this review.
Desert Hot Springs Extended temporary moratorium July 7, 2026 vote added 22 months and 15 days to the June 16 pause, bringing the total period to two years.Extension adopted July 7, 2026 Confirm exact expiration against the adopted ordinance; monitor the study and permanent rules. Extension reporting · July 23, 2026Source checked October 7, 2026
Cathedral City Status not established in this tracker No jurisdiction-specific adopted data-center policy has been verified here. This does not mean the use is permitted.No verified policy date Review adopted ordinances and planning records for this jurisdiction. Official-record review required
Rancho Mirage Status not established in this tracker No jurisdiction-specific adopted data-center policy has been verified here. This does not mean the use is permitted.No verified policy date Review adopted ordinances and planning records for this jurisdiction. Official-record review required
Palm Desert Status not established in this tracker No jurisdiction-specific adopted data-center policy has been verified here. This does not mean the use is permitted.No verified policy date Review adopted ordinances and planning records for this jurisdiction. Official-record review required
Indian Wells Status not established in this tracker No jurisdiction-specific adopted data-center policy has been verified here. This does not mean the use is permitted.No verified policy date Review adopted ordinances and planning records for this jurisdiction. Official-record review required
La Quinta Status not established in this tracker No jurisdiction-specific adopted data-center policy has been verified here. This does not mean the use is permitted.No verified policy date Review adopted ordinances and planning records for this jurisdiction. Official-record review required
Riverside County — unincorporated valley Status not established in this tracker No jurisdiction-specific adopted data-center policy has been verified here. This does not mean the use is permitted.No verified policy date Review adopted ordinances and planning records for this jurisdiction. Official-record review required

How this stays current: DOI reviews new ordinances, meeting outcomes and source documents, then records meaningful changes in the update log below. This is a reviewed publishing record, not a live permit feed. Unknown statuses remain research gaps until supported by evidence.

The questions cities are trying to answer

“Data center” describes a wide range of facilities. A small enterprise server building and a multi-building artificial-intelligence campus do not have the same load, cooling system or public impact. Reliable review therefore requires a defined project rather than a generic industry average.

Electricity and grid capacity

How large is the requested load, who pays for new generation and transmission, and could speculative demand distort long-term infrastructure planning? On September 15, Imperial Irrigation District approved Schedule LL, a service-request process for qualifying large or expanded electric loads. IID says an application does not reserve capacity, guarantee service or obligate it to build facilities. The tariff addresses electric service within IID's territory; it does not change any city's land-use policy. Review IID's tariff and application process.

Water and cooling

Which cooling technology is proposed, how does it perform during extreme heat, and what water source and annual demand would the actual design require?

Noise, heat and air quality

What would continuous mechanical equipment, cooling systems and backup generators mean for adjacent neighborhoods and workers?

Land and employment

Does the project use scarce industrial land efficiently, and how do construction jobs, tax revenue and permanent employment compare with alternative uses?

Emergency and public services

Can local fire, utility and emergency systems support a high-load facility, including battery storage or fuel-backed emergency generation?

Economic development

Could a well-defined project diversify the economy, fund infrastructure or expand the tax base without shifting excessive cost or risk to residents?

Coachella Valley data-center timeline

Coachella Municipal Utility is formed

The new municipal entity creates the institutional backdrop for the later Stronghold infrastructure agreement.

Coachella and Stronghold enter a utility-development agreement

The agreement addresses electric infrastructure; it does not approve the separate technology-campus land use.

Campus application is deemed incomplete

City staff says required materials, including environmental documentation, were missing and no formal review had begun.

Coachella hears nearly six hours of public testimony

Residents raise questions about water, electricity, noise, air quality, land use and the municipal-utility agreement.

Indio adopts its first 45-day moratorium

The city pauses applications while it considers permanent policy.

Coachella pauses data centers and terminates the Stronghold agreement

The incomplete campus application does not advance.

Desert Hot Springs begins an interim moratorium

The city starts a study of high-intensity-computing uses.

Two moratoriums are extended

Desert Hot Springs adopts its long study period; Coachella extends its pause while drafting a prohibition.

Indio extends its moratorium through October 16

The council also directs staff to prepare a permanent-ban ordinance.

Coachella introduces Ordinance 1231

The first reading moves the permanent citywide prohibition forward.

Coachella adopts its ban; Palm Springs starts a moratorium

Two cities take different legal paths on the same night.

IID approves Schedule LL for large electric loads

The tariff sets out how qualifying large-load service requests are evaluated.

Coachella's Ordinance 1231 takes effect

The citywide prohibition becomes effective 30 days after final adoption.

Palm Springs extends its moratorium

The City Council approves an additional 22 months and 15 days, creating an outside date of August 25, 2028 while zoning standards are developed.

Indio approves a one-year extension

Local reports confirm a unanimous vote extending the temporary moratorium through October 16, 2027 while permanent rules are developed.

Indio moratorium outside date

The extended temporary pause runs through this date unless ended or replaced earlier.

Palm Springs moratorium outside date

The extended pause can run through this date, although the city says it may rescind the moratorium earlier when new zoning standards are adopted.

What to watch next

Coachella's next policy step

Track whether the council advances a voter measure after Ordinance 1231 took effect September 25.

Indio’s permanent rules

The October 7 extension is reported approved through October 16, 2027. Watch for the signed ordinance and subsequent permanent zoning action.

Palm Springs zoning-code work

Watch for proposed definitions, permitted locations, development standards and environmental requirements. The September 30 extension is temporary and can be replaced by adopted zoning rules.

Desert Hot Springs study

Track proposed definitions, thresholds, utility requirements and environmental standards during the extended moratorium.

Other valley jurisdictions

Cathedral City, Rancho Mirage, Palm Desert, La Quinta and Riverside County could choose different approaches.

Verifiable project data

Future applications should identify acreage, electric load, cooling design, water demand, backup power, employment and infrastructure responsibility.

Tracker update log

October 8, 2026 — Indio extension approved

Updated Indio from pending to extended through October 16, 2027 following reports of the unanimous October 7 vote. It remains a temporary moratorium. The earlier pending entry is retained as a dated record. Sources: KESQ / City News Service and NBC Palm Springs. The City of Indio: October 7 agenda item 13.3, staff report and Ordinance 1838-Ext2 was reviewed; the signed final copy was not independently retrieved.

October 7, 2026 — Interactive jurisdiction explorer and pending Indio hearing

Added city and policy filters, separate entries for all nine valley cities and unincorporated Riverside County, evidence dates and explicit research gaps. Rechecked Palm Springs’ extension against its city-filed CEQAnet notice. Added the scheduled October 7 Indio extension hearing as pending; the proposed October 16, 2027 deadline is not treated as adopted.

October 4, 2026 — Sourced jurisdiction comparison

Refined the city comparison with decision dates, direct evidence links and explicit research gaps. Reconfirmed Palm Springs’ September 30 extension and the reported Indio October 16 deadline. No later Indio enactment is assumed from the planned schedule. Other valley cities and county areas remain unclassified pending official-record verification.

October 1, 2026 — Palm Springs extension adopted

Updated Palm Springs after the September 30 City Council vote. The city’s temporary moratorium now has an outside date of August 25, 2028 while zoning standards are developed. The tracker continues to distinguish this temporary pause from Coachella’s permanent prohibition.

September 26, 2026 — Effective date, Palm Springs hearing and IID tariff

Updated Coachella's September 25 effective date; added Palm Springs' then-pending September 30 hearing; and recorded IID's September 15 approval of Schedule LL.

September 2, 2026 — Tracker launched

Established the four-city status board, reconstructed the Coachella proposal record and added the next scheduled dates for Coachella and Indio.

August 26, 2026 — Coachella and Palm Springs act

Coachella completed adoption of Ordinance 1231. Palm Springs adopted a separate 45-day urgency moratorium.

July 15, 2026 — Indio extends its pause

The Indio City Council extended the moratorium for 90 days and directed staff to prepare a permanent prohibition.

July 7–8, 2026 — Desert Hot Springs and Coachella extend

Desert Hot Springs created a nearly two-year study period. Coachella extended its temporary pause while preparing permanent legislation.

June 3–16, 2026 — The regional moratorium sequence begins

Indio acted June 3, Coachella acted June 4 and Desert Hot Springs acted June 16. Coachella also terminated its Stronghold utility-development agreement.

February 2026 — Coachella signs the Stronghold agreement

The city approved an agreement related to municipal-utility infrastructure. The separate technology-campus application never became a complete or approved development plan.

Frequently asked questions

Are data centers banned throughout the Coachella Valley?

No. Land-use policy is being made city by city. Coachella has adopted a permanent prohibition. Indio, Desert Hot Springs and Palm Springs are under temporary moratoriums, and other valley jurisdictions may take different approaches.

What is the difference between a ban and a moratorium?

A permanent prohibition has no automatic expiration, although local law can later be amended. A moratorium is a temporary pause used while a city studies and adopts longer-term rules. It expires unless extended or replaced.

Was the Coachella technology campus approved or under construction?

No. City staff said the initial land-use application was incomplete and lacked required environmental documentation. Formal review had not begun when the city terminated the related utility agreement and stopped the proposal from advancing.

Was the proposed Coachella campus 240 acres or 450 acres?

The official June 4 planning report described four parcels totaling approximately 240 acres. Broader public and media descriptions referred to six data centers across as much as 450 acres. Because no complete project application reached review, there was no approved final footprint.

Do all data centers use enormous amounts of water?

No single number applies to every facility. Water demand depends on cooling design, computing density, local weather and operating conditions. That is why project-specific water, power and cooling information is more useful than a generic industry estimate.

Bottom line

The Coachella Valley does not have one data-center policy. It has four municipal processes moving at different speeds. Coachella has completed a permanent prohibition after canceling an incomplete campus proposal. Indio is developing permanent rules while its temporary pause now runs through October 16, 2027. Desert Hot Springs and Palm Springs now have longer study windows, with Palm Springs' temporary moratorium extending as far as August 25, 2028 while it writes zoning standards. IID has also adopted a process to evaluate qualifying large electrical loads.

The next phase is less about the canceled proposal and more about definitions: what qualifies as a data center, which ordinary technology uses remain exempt, and whether any future project can document its utility, land, environmental and economic effects well enough for public evaluation.

Sources and methodology

This tracker prioritizes city staff reports, adopted ordinances and official notices. Local reporting is used for meeting outcomes, public statements and context not yet presented in a searchable city document. The comparison table was reviewed October 4, 2026 against the linked decision reports; other research retains its October 1, 2026 review. Older outcomes are dated, and unresolved later actions are identified explicitly.

Electric utility

Coachella

Indio

Desert Hot Springs and Palm Springs

Update and correction policy

The status board and update log will change when a city publishes a new ordinance, extension, staff report, application or meeting result. If an official record conflicts with earlier reporting, the official record will control and the change will be documented.

Desert Oasis Insider

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