CITY COUNCIL STAFF REPORT
DATE: SEPTEMBER 30, 2026 PUBLIC HEARING
SUBJECT: EXTENSION OF INTERIM URGENCY ORDINANCE (ORDINANCE NO. 2134) TEMPORARILY PROHIBITING THE APPROVAL OF
APPLICATIONS AND PERMITS RELATED TO DATA CENTERS FOR AN ADDITIONAL PERIOD OF TWENTY-TWO (22) MONTHS AND FIFTEEN (15) DAYS
FROM: Scott C. Stiles, City Manager
BY: Department of Planning Services
SUMMARY:
On August 26, 2026, the City Council adopted an interim urgency ordinance (Ordinance No. 2134) that temporarily suspended the City to approve any applications for data centers for a period of forty-five (45) days. The Ordinance is due to expire on October 10, 2026. Under California Government Code Section 65858, Ordinance No. 2134 expires forty-five (45) days from its date of adoption, unless it is extended by the City Council by a four-fifths vote. The City Council may adopt an extension of an interim urgency ordinance for a total period of one (1) or two (2) years.
The proposed ordinance extends Ordinance No. 2134 for an additional period of twenty- two (22) months and fifteen (15) days, for a total of two (2) years. The extension of time will allow the Department of Planning Servies to conduct comprehensive analyses of data centers to understand their benefits and impacts, evaluate the appropriateness of such uses within the City, and develop land use regulations as a part of the ongoing citywide Zoning Code Update process.
RECOMMENDATION:
1. Open the public hearing and receive public testimony; and
2. Close the public hearing, waive further reading and adopt Ordinance No. _____ entitled, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM
SPRINGS, CALIFORNIA, IN ACCORDANCE WITH CALIFORNIA
GOVERNMENT CODE SECTION 65858, EXTENDING AN INTERIM URGENCY ORDINANCE NO. 2134 TO TEMPORARILY PROHIBIT THE APPROVAL OF ANY
LAND USE ENTITLEMENTS AND/OR PERMITS TO ALLOW THE OPERATION
City Council Staff Report
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Moratorium Extension – Data Centers
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OF DATA CENTERS FOR AN ADDITIONAL PERIOD OF TWENTY-TWO (22) MONTHS AND FIFTEEN (15) DAYS IN THE CITY OF PALM SPRINGS” BACKGROUND:
On August 26, 2026, the City Council adopted an interim urgency ordinance (Ordinance No. 2134) establishing a 45-day moratorium to temporarily prohibit the acceptance, processing, or approval of applications and permits related to data centers in accordance with California Government Code Section 65858. Ordinance No. 2134 is due to expire on October 10, 2026.
Under Ordinance No. 2134, “data center” means 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. This definition does not include computer, server, or telecommunications equipment that is secondary and customarily incidental to an otherwise permitted principal use on the property, such as servers or IT equipment serving a hospital, office, hotel, or other business located on the same site.
California Government Code Section 65858(d) requires the City Council to issue a written report describing the measures taken to alleviate the conditions which led to the adoption of the interim urgency ordinance at least ten (10) days prior to the expiration or any extension of the moratorium. The 10-day moratorium report was issued on September 9, 2026 (Attachment B). The Department of Planning Services has directed the City- contracted consultants to engage in data center studies since the adoption of Ordinance No. 2134; however, additional time is required to perform such tasks, which will be conducted through the ongoing citywide Zoning Code Update process.
STAFF ANALYSIS:
The Palm Springs Municipal and Zoning Codes currently do not provide definitions or regulations pertaining to data centers and their related uses, and there are no policies or guidelines in effect for such uses. No zoning standards, performance requirements, setback rules, noise standards, utility demand thresholds, or environmental mitigation requirements specifically applicable to data centers have been adopted.
As stated in the 10-day moratorium report (Attachment B), additional time is required for the Department of Planning Services to conduct comprehensive analyses of data centers to understand their benefits and impacts, evaluate the appropriateness of such uses within the City, and develop land use regulations as a part of the ongoing citywide Zoning Code Update process. An additional extension of time by twenty-two (22) months and City Council Staff Report
September 30, 2026 -- Page 3
Moratorium Extension – Data Centers
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fifteen (15) days would be adequate to complete all required work. The proposed interim urgency ordinance would be rescinded by the City Council following the completion of the Zoning Code Update process and establishing regulations related to data centers.
ENVIRONMENTAL ASSESSMENT:
Adopting the extension of the Interim Urgency Ordinance No. 2134 is not subject to the California Environmental 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), 15060(c)(3) (the activity is not a project as defined in Section 15378), and 15061(b)(3) (there is no possibility that the activity will have a significant effect on the environment) 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. The adoption of this Ordinance maintains the status quo; it prevents changes in the environment pending the completion of zoning code revisions and related impact studies.
ALIGNMENT WITH STRATEGIC PLANNING:
This item aligns with the following City Council Strategic Plan Broad Goal: Infrastructure and Facilities.
FISCAL IMPACT:
Adoption of this Ordinance is not expected to have a significant direct fiscal impact on the City. Staff time associated with preparing the required written report and scheduling the extension public hearing were absorbed within existing departmental budgets.
REVIEWED BY:
Department Director: Christopher Hadwin
Deputy City Manager: Flinn Fagg
City Manager: Scott Stiles
ATTACHMENT:
A. Ordinance No. 2134
B. 10-Day Moratorium Report
C. Draft Ordinance