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Proposed Urgency Ordinance Extending Moratorium
California Government Code Section 65858 authorizes a city to adopt, as an urgency measure, an interim ordinance prohibiting land uses that may conflict with contemplated general plan, specific plan, zoning, or development standard amendments that the City is studying or intends to study within a reasonable time. California Government Code Section 65858 further requires that the City Council find that there exists a current and immediate threat to the public health, safety, or welfare, and that the approval of additional use permits, building permits, subdivisions, variances, or other entitlements would result in that threat to public health, safety, or welfare. On June 4, 2026, the City Council adopted Urgency Ordinance No. 1229, which enacted a moratorium on the approval of any land use entitlement for a “Data Center” in the City of Coachella.
A “Data Center” was defined in the ordinance as:
“ .. a structure or site used primarily for the storage, management, processing, and transmission of digital data and that houses computer or network equipment, systems, servers, appliances, and other associated components related to digital data storage, processing, and related operations. Data center uses include data storage facilities, small data storage facilities, server farms, artificial intelligence training or processing, image processing, cloud computing, email servicing, and other similar uses and appurtenant facilities.”
Pursuant to California Government Code Section 65858, the Urgency Ordinance No. 1229 established a 45-day moratorium on data center development. California Government Code Section 65858 authorizes the City Council to extend the moratorium for an additional 10 months and 15 days, and requires the City to prepare a progress report describing the measures being taken to alleviate the conditions that gave rise to the need for the moratorium.
This Urgency Ordinance proposes extending the moratorium for an additional 10 months and 15 days to ensure that proposed changes to City’s Municipal Code that are approved by City Council are enacted prior to the lapse of the current prohibition of data center uses in the City. The statutorily required Written Report is attached to this staff report.
Written Report
The Written Report is submitted in accordance with Government Code Section 65858(d), which requires a written report describing the measures taken to alleviate the threat to the public health, safety, or welfare caused by the potential development of a data center within the City that led to the adoption of a temporary moratorium prior to any extension of that moratorium.
Urgency Ordinance No. 1229, establishing a 45-day moratorium, was enacted in response to growing concerns regarding:
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The threats data centers pose to electrical infrastructure and grid reliability; The concerns data centers raise with respect to water supply and drought resiliency; The public health impacts caused by data centers; and The concerns data centers raise with respect to fire and emergency response and public safety generally.
Since the adoption of Urgency Ordinance No. 1229, City staff has undertaken the following efforts to study and address these concerns:
1. Review of Existing Regulations: Staff has conducted a comprehensive review of Title 17 of the Coachella Municipal Code, as well as other current municipal code provisions that would regulate potential data centers within the City.
2. Research of Best Practices: Staff has examined regulatory frameworks used by other California cities to effectively mitigate the impact of data centers on infrastructure, utilities, and public health and safety.
3. Public Engagement: The City has held public hearings to discuss the presence of data centers within the City between members of the community.
4. Zoning Analysis: Staff has evaluated zoning strategies to best regulate the presence of data centers within the City.
5. Coordination with Legal Counsel: The City Attorney’s Office has been consulted to ensure any proposed regulations are legally defensible and consistent with state law.
Based on the above efforts, staff is preparing a proposed ordinance to amend Title 17 of the Coachella Municipal Code to consider permanently prohibiting data centers and related uses within the City. This proposed ordinance is currently scheduled to go before the Planning Commission on July 18, 2026, and it is thereafter scheduled to go before the City Council at the August 12, 2026, regularly-scheduled meeting for introduction and first reading.
Required Findings
The findings in Urgency Ordinance No. 1229 regarding data centers, detailing their emerging nature; their threats to electrical infrastructure and grid reliability; the concerns they raise with respect to water supply and drought resiliency; their public health impacts; and the concerns they raise with respect to fire and emergency response, and public safety generally, are still applicable as staff continues to study and prepare appropriate zoning regulations and development standards for data centers within the City.
RECOMMENDED ACTION:
Issue the Written Report and adopt Urgency Ordinance as presented, extending a moratorium on data center development for an additional 10 months and 15 days pursuant to Government Code Section 65858, effective immediately upon adoption by a four-fifths vote.
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ALTERNATIVE ACTION:
Do not adopt the Urgency Ordinance extending the moratorium, thus allowing the moratorium to expire on July 19, 2026.
FISCAL IMPACT:
Adoption of this Urgency Ordinance is not expected to have a significant direct fiscal impact on the City.
ATTACHMENT
1. Urgency Ordinance No. 1230
2. Written Report: Measures Taken to Alleviate Conditions Which Led to Adoption of Urgency Ordinance No. 1229
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URGENCY ORDINANCE NO. 1230
AN URGENCY ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF COACHELLA, CALIFORNIA IN
ACCORDANCE WITH CALIFORNIA GOVERNMENT
CODE, SECTION 65858 EXTENDING URGENCY
ORDINANCE NO. 1229, WHICH ENACTED A
MORATORIUM ON THE APPROVAL OF ANY LAND USE
ENTITLEMENTS AND/OR AGREEMENTS TO ALLOW THE
OPERATION OF DATA CENTERS IN THE CITY OF
COACHELLA, FOR AN ADDITIONAL PERIOD OF 10
MONTHS AND 15 DAYS
THE CITY COUNCIL OF THE CITY OF COACHELLA DOES ORDAIN AS FOLLOWS:
SECTION 1. Urgency Findings. In accordance with California Government Code Section 65858 and in order to protect the public health, safety and welfare, the City Council of the City of Coachella adopts the following findings in support of this Urgency Ordinance and finding that there is a current and immediate threat to the public health, safety or welfare of the residents of the City of Coachella:
A. Authority and Purpose.
1 California Government Code Section 65858 authorizes a city council to adopt, as an urgency measure, an interim ordinance prohibiting an identified land use that may conflict with contemplated general plan, specific plan, zoning, or development standard amendments that the City is studying or intends to study within a reasonable time.
2. California Government Code Section 65858 further requires that the City Council find that there exists a current and immediate threat to the public health, safety, or welfare, and that the approval of additional use permits, building permits, subdivisions, variances, or other entitlements regarding an identified land use would result in that threat to public health, safety, or welfare.
3. On June 4, 2026, the City Council approved Urgency Ordinance No. 1229 in accordance with Government Code section 65858, enacting a fortyfive (45) day moratorium on the approval of any land use entitlement and/or agreement that would allow the operation of data centers in the City (“Moratorium”).
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Urgency Ordinance No. 1230
2 4. A “data center” as defined herein in Section 2 below, without appropriate study and standards, could impose substantial and potentially irreversible impacts on local water supplies, electrical infrastructure, air quality, and community character.
5. The City of Coachella is continuing to studying potential amendments to its General Plan, Zoning Ordinance, development standards, infrastructure policies, utility allocation procedures, environmental review thresholds, and performance standards relating to the establishment, expansion, and operation of data centers and high-intensity digital infrastructure uses to determine appropriate regulatory standards or, alternatively, their prohibition.
6. The City requires additional time to ensure that proposed changes to City’s Municipal Code that may be approved by the City Council are enacted prior to the lapse of the current prohibition of data center uses in the City.
7. The City Council further finds that, absent an extension of the Moratorium, applications for new data centers or conversion of existing structures into data centers could be submitted, processed, and vested under existing regulations before the City adopts updated regulations specifically tailored to address the unique operational, environmental, infrastructure, and public safety impacts associated with such uses.
8. The City Council desires to extend the Moratorium for an additional ten (10) months and fifteen (15) days, pursuant to Government Code section 65858, through June 4, 2027.
9. The City Council incorporates by reference its findings in Urgency Ordinance No. 1229 regarding data centers, detailing their emerging nature; their threats to electrical infrastructure and grid reliability; the concerns they raise with respect to water supply and drought resiliency; their public health impacts; and the concerns they raise with respect to fire and emergency response, and public safety generally.
B. Need for Immediate Extension of Moratorium.
1. The City Council finds that there is still a current and immediate threat to the public health, safety, and welfare arising from the potential establishment of data centers under the City’s existing zoning and development regulations, which were not designed to address the unique and intensive operational characteristics of such uses.
2. The City Council further finds that the approval of additional land use entitlements, building permits, grading permits, use permits, variances, subdivisions, or any other applicable approvals for data center development
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Urgency Ordinance No. 1230
3 during the period in which the City continues to study appropriate regulatory controls would result in and exacerbate the threats identified herein.
3. The City Council additionally finds that, without the immediate extension of the Moratorium, developers could obtain vested rights or approvals under existing regulations before the City has an opportunity to complete the studies and adopt reasonable regulations necessary to protect the public health, safety, and welfare.
4. The City Council finds that extending the Moratorium is necessary to preserve the status quo while the City consider appropriate amendments to its General Plan, Zoning Ordinance, development standards, utility allocation policies, environmental review procedures, and/or public safety regulations applicable to data centers.
5. The City Council finds that the adoption of this urgency ordinance is necessary for the continued preservation of the public peace, health, safety, and welfare pursuant to California Government Code Section 65858 and the City’s police powers under Article XI, section 7 of the California Constitution.
6. Based upon all evidence contained in the administrative record, the City Council hereby finds that this interim urgency ordinance is necessary to continue avoiding current and immediate threats to the public health, safety, and welfare pending completion of the studies and regulatory actions described herein.
SECTION 2. Moratorium Extension. The City of Coachella shall continue not to issue or approve any General Plan Amendment, Specific Plan Amendment, zone change, building permit, occupancy permit, conditional use permit, variance, subdivision map or other land use entitlement, agreement or permit or regulatory license or permit required to comply with the provisions of the City of Coachella Municipal Code for the construction, operation or development of a “data center” by any private or public entity on any property within the City during the time that this Urgency Ordinance is in effect, and continuing for the time set forth in any action taken to extend this moratorium.
For purposes of this Urgency Ordinance, “data center” shall mean a structure or site used primarily for the storage, management, processing, and transmission of digital data and that houses computer or network equipment, systems, servers, appliances, and other associated components related to digital data storage, processing, and related operations. Data center uses include data storage facilities, small data storage facilities, server farms, artificial intelligence training or processing, image processing, cloud computing, email servicing, and other similar uses and appurtenant facilities.
SECTION 3. Compliance with California Environmental Quality Act. The City Council finds that this Urgency Ordinance is not subject to the California Environmental
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4 Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly; it prevents changes in the environment pending the completion of zoning code revisions and related impact studies.
SECTION 4. Effective Date. This Urgency Ordinance was adopted by the necessary four-fifths vote of the members of the City Council pursuant to California Government Code Section 65858, and shall take effect immediately upon its adoption.
SECTION 5. Written Report. At least 10 days before Urgency Ordinance No. 1229 or any extension expires, the City Council shall issue a written report describing the measures taken to alleviate the condition which led to the adoption of Urgency Ordinance No. 1229 or any extension.
SECTION 6. Publishing. The City Clerk shall certify to the passage of this Urgency Ordinance and cause the same or a summary thereof to be published within fifteen (15) days after adoption in a newspaper of general circulation, printed and published in Coachella, California.
SECTION 7. Term. This Ordinance is an Urgency Ordinance, enacted pursuant to Government Code section 65858. This Urgency Ordinance extends the Moratorium for an additional ten (10) months and fifteen (15) days. As a result, the Moratorium shall be operative through June 4, 2027, and subsequently, be of no further force or effect, unless and until extended in accordance with Government Code, Section 65858.
APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 8
th day of July, 2026.
Mayor
City of Coachella
Attest:
__________________________________
City Clerk
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5 Approved as to form:
__________________________________
City Attorney
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STATUS REPORT
7/8/2026
TO: Honorable Mayor and City Council Members
FROM: Gustavo Romo, City Manager
SUBJECT: Written Report Pursuant to Government Code section 65858: Measures Taken to Alleviate Conditions Which Led to Adoption of Urgency Ordinance No. 1229 This report is submitted in accordance with Government Code Section 65858(d), which requires a written report describing the measures taken to alleviate the threat to the public health, safety, or welfare caused by the potential development of a data center within the City that led to the adoption of a temporary moratorium prior to any extension of that moratorium.
On June 4, 2025, City Council adopted Urgency Ordinance No. 1229, establishing a 45-day moratorium on the approval of any land use entitlement and/or agreement that would allow the operation of data centers in the City. The moratorium was enacted in response to growing concerns regarding:
The threats data centers pose to electrical infrastructure and grid reliability; The concerns data centers raise with respect to water supply and drought resiliency; The public health impacts caused by data centers; and The concerns data centers raise with respect to fire and emergency response, and public safety generally.
Since the adoption of Urgency Ordinance No. 1229, City staff has undertaken the following efforts to study and address these concerns:
1. Review of Existing Regulations: Staff has conducted a comprehensive review of Title 17 of the Coachella Municipal Code, as well as other current municipal code provisions that would regulate potential data centers within the City.
2. Research of Best Practices: Staff has examined regulatory frameworks used by other California cities to effectively mitigate the impact of data centers on infrastructure, utilities, and public health and safety.
3. Public Engagement: The City has held public hearings to discuss the presence of data centers within the City between members of the community.
4. Zoning Analysis: Staff has evaluated zoning strategies to best regulate the presence of data centers within the City.
5. Coordination with Legal Counsel: The City Attorney’s Office has been consulted to ensure any proposed regulations are legally defensible and consistent with state law.
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Based on the above efforts, staff is preparing a proposed ordinance to amend Title 17 of the Coachella Municipal Code that would permanently prohibit data centers and related uses within the City. This proposed ordinance is currently scheduled to go before the Planning Commission on July 18, 2026, and it is thereafter schedule to go before the City Council at the meeting on August 12, 2026. If the City Council decides to approve the permanent prohibition, it would go into effect after the end of the 45-day moratorium imposed by Urgency Ordinance No. 1229.
To avoid a lapse in the prohibition of data centers within the City, staff recommends that the City Council adopt another urgency ordinance extending the moratorium for an additional ten (10) months and fifteen (15) days, through June 4, 2027. This extension of the moratorium ensures that City Council can either, approve the proposed amendment to Title 17 of the Coachella Municipal Code and have it go into effect, or provide staff with alternative direction, before the end of the moratorium.
CONTACT INFORMATION
For questions or additional information, please contact:
Gustavo Romo
City Manager
(760) 398-3502
[email protected]
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