A new California poll shows residents fear AI data centers will drive up power bills and strain the grid.
Artificial intelligence may be fueling the next wave of technological innovation, but many Californians don't want the infrastructure powering it built anywhere near their neighborhoods. A new Public Policy Institute of California survey found that 73% of Californians oppose the construction of data centers in their communities, making it one of the rare issues drawing opposition across political and regional lines. Opposition was especially strong in Los Angeles County and the Inland Empire, while nearly two-thirds of respondents expressed concern about the facilities' environmental impacts.
The findings arrive as developers, utilities and government officials wrestle with how to accommodate the exploding energy demands of AI—and who should pay for it. For California residents already struggling with some of the nation's highest electricity rates, the debate raises a straightforward question: Could more AI data centers make power bills even higher?
Data centers are massive facilities filled with servers that store, process, and transmit digital information. Every time you stream a movie, post on social media, ask ChatGPT a question, or shop online, there's a good chance a data center is involved. The newest generation of AI-focused data centers is substantially larger and more power-hungry than traditional facilities because they rely on thousands of high-performance computer chips operating around the clock. As AI adoption grows, technology companies are racing to build more of these facilities across the United States.
AI data centers require enormous amounts of power for two main reasons: they must power thousands of chips running continuously, and they need massive amounts of electricity for cooling systems. Energy experts and regulators nationwide have warned that the rapid growth of AI infrastructure is increasing demand for new power plants, transmission lines, and grid upgrades. Some proposed facilities consume as much electricity as a mid-sized city.
In California, the issue has attracted particular scrutiny because residents already face high utility costs and the state is pursuing ambitious clean-energy goals. Lawmakers have debated whether ordinary ratepayers could end up subsidizing infrastructure needed to serve large data center customers. Consumer advocates, lawmakers and regulators have raised concerns that new transmission lines, substations and other grid upgrades built to serve large data centers could eventually be reflected in electricity rates paid by households and small businesses.
The extent of this impact remains heavily debated. Nationally, evidence is already sparking debate. Reuters recently reported that businesses in parts of the country have experienced significant increases in electricity costs as data center power demand expands. The Associated Press has also reported that states are increasingly examining whether data centers should shoulder a larger share of the costs associated with grid expansion. California regulators are still studying the issue, and there is no consensus yet on how much future data-center growth might affect residential utility bills.
Opposition to AI data centers is no longer limited to a handful of public hearings. Across California, residents, local officials, and environmental advocates are increasingly challenging proposed projects over concerns about electricity demand, water consumption, land use, and quality-of-life impacts.
The Coachella Valley has become one of California's most visible data center flashpoints. In the city of Coachella, city council members recently extended a moratorium on new data centers and are expected to consider a permanent ban in August after widespread community opposition derailed a proposed project from Stronghold Power Systems. Residents packed council meetings and town halls, arguing that data centers could strain local water supplies, increase electricity demand and create public health concerns. City Manager Gustavo Romo warned council members that data centers are among the most energy- and water-intensive land uses a city can approve. In a memo, he noted that some AI-focused facilities can require as much electricity as roughly 100,000 homes while consuming significant amounts of water for cooling. He also cited concerns about groundwater depletion, constraints on imported water, and drought conditions in the Coachella Valley. Nearby desert cities Indio and Desert Hot Springs have also adopted temporary moratoriums while evaluating how to regulate future projects.
Monterey Park became the first city in the nation to approve a voter-backed ban on data centers, reflecting growing skepticism toward the industry and demonstrating how local opposition can translate into policy. Proposed data center projects in Imperial Valley have faced legal challenges and public scrutiny, with critics raising concerns about environmental impacts and resource use in a region already coping with significant water and infrastructure pressures.
The strongest opposition in the latest survey came from residents in Los Angeles County and the Inland Empire, suggesting future proposals in Southern California could face particularly intense public resistance. The poll found opposition cuts across political and demographic lines.