LA Council Watch

Data Center Development / Electrical Grid Capacity, Water Supply, Drought Resilience, Ratepayer Costs / Temporary Moratorium / Hyperscalers

Council File 26-1284

Pending — the city is studying whether to temporarily pause new mega-scale data centers (100+ megawatts) while it assesses their impact on water and power supplies, with two city departments gathering feasibility data and preparing a potential moratorium ordinance.

Introduced
2026-09-08
Last changed
2026-09-08
Status
open
Expires
2028-09-08
Committee
Energy and Environment Committee
Mover
ADRIN NAZARIAN
Second
TRACI PARK
References
Related Council File: 26-0262

Brief

Councilmember Adrin Nazarian, seconded by Traci Park, introduced a motion on September 8, 2026, proposing a temporary moratorium on data center development by hyperscale operators in Los Angeles. The motion raises concerns about electrical grid capacity, water supply, drought resilience, and impacts to ratepayers. It was immediately referred to the Energy and Environment Committee and Planning and Land Use Management Committee, where it currently sits.

Full summary

On September 8, 2026, Councilmember Adrin Nazarian introduced a motion, seconded by Councilmember Traci Park, to address the growing infrastructure pressures posed by large-scale data centers, particularly hyperscalers — facilities with expansion rights above 100 megawatts. The motion cites striking national trends: data centers consumed an estimated 4.4 percent of all U.S. electricity in 2023, a share projected to reach 6.7 to 12 percent by 2028, and grid demand from these facilities is expected to nearly triple by 2030. Water consumption is equally significant — a single large facility using evaporative cooling can consume between 1 million and 5 million gallons per day, comparable to a town of 30,000 residents, with peak-day demand potentially reaching 8 million gallons. The motion argues that Los Angeles has not yet conducted a city-specific assessment of how data center development — especially by hyperscalers — would affect the Department of Water and Power's electric and water systems, ratepayer costs, drought resilience, and long-term infrastructure planning. While LADWP's average data center inquiry is 40 megawatts, hyperscalers can require major generation, transmission, and substation investments and present a concentrated single-customer risk. The motion points to California Senate Bill 57 (Padilla), signed in 2025, which directs the state Public Utilities Commission to examine data center impacts on ratepayers and grid demand, and notes that comparable temporary moratoria have been adopted in Denver, New Orleans, Athens-Clarke County (Georgia), Apex (North Carolina), and locally in the City of Monterey Park. The motion directs two parallel actions. First, it asks DWP, coordinating with the Department of City Planning, the Department of Building and Safety, and the Bureau of Engineering, to report within 90 days on the feasibility of conducting a comprehensive study of hyperscaler impacts on the grid, water supply, ratepayer costs, and infrastructure investment needs — including the possibility of establishing a moratorium on data centers requiring more than 100 megawatts. Second, it asks the City Attorney, with assistance from City Planning, to prepare the required ordinance or ordinances that would establish a temporary moratorium on new data center facilities requiring more than 100 megawatts, to remain in effect pending completion of that study. As of September 8, 2026, the motion has been referred to the Energy and Environment Committee and the Planning and Land Use Management Committee, where it remains pending. No committee hearings or votes have been recorded. The file expires in September 2028.

Activity (1)

  • 2026-09-08 Motion referred to Energy and Environment Committee; Planning and Land Use Management Committee.

Documents (1)

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