Proposed LA County Data Center Ban in Unincorporated Areas

Photo by Taylor Vick on Unsplash

Los Angeles County has stopped approving large AI data centers anywhere in its unincorporated territory. On September 17, 2026, Department of Regional Planning Director Amy Bodek issued a directive prohibiting large-scale data centers across all unincorporated zones, effective immediately. The freeze is temporary. It holds while the county writes a permanent ban into its zoning code, a push led by Board of Supervisors Chair Hilda Solis.

What the ban covers

The ban targets hyperscale facilities, the sites that link hundreds of computers to run AI programs. It does not touch the county’s 88 incorporated cities, which set their own zoning.

Where: every zone in unincorporated LA County, from East LA and Altadena to the Antelope Valley.
What: new approvals for large-scale AI data centers are halted.
How long: no end date; the interim directive stays until a permanent ordinance is adopted.
Likely exemptions: smaller sole-source, enterprise and accessory data centers, per reporting on the proposed ordinance. The county’s own government data center in Redondo Beach is cited as the kind of facility still allowed.

The action traces to an April 14, 2026 motion by Solis, co-authored by Supervisors Mitchell, Horvath, Hahn and Barger and approved unanimously. It directed eight county departments, including Public Health, Regional Planning, Public Works and Fire, to study data center impacts, draft a moratorium ordinance and report back within 120 days.

Why the county acted

The county’s case rests on power, water and health. LA County already hosts more than 70 data centers, and Solis’s motion warned their energy demand could exceed the electricity used by roughly 8 million homes.

Water: a single hyperscale site can use up to 5 million gallons a day, likely drawing on costly imported supply.
Power: grid strain could push utilities toward diesel peaker plants.
Health and noise: backup diesel generators emit PM2.5, and the motion cites pollutant effects up to 0.6 miles from a facility. Residents also complained of constant humming, higher power bills, fire risk and lower property values.

“Technology growth should not come at the expense of public health, environmental protections, or residents’ quality of life,” Solis said. She added that the need for a ban “has only been further underscored by alarming developments from the AI sector”.

The pushback

Labor unions and the data center industry oppose the ban, arguing it sends jobs and investment elsewhere. “These are very big job creators,” said Joe Sullivan of IBEW Local 11 when the April motion was debated. “Where there are data centers, we’ll have up to 4,000 union construction workers”.

What it means for land and investors

The ban removes a high-value use from unincorporated industrial land, and that should show up in pricing. Data center buyers typically pay a premium for sites with heavy power capacity, large floor plates and industrial zoning. With that buyer pool now shut out of county-zoned parcels, those sites fall back on conventional uses such as warehouse, logistics and manufacturing.

Highest and best use: appraisers valuing unincorporated industrial parcels should no longer treat hyperscale data center use as legally permissible while the ban stands.
Pending deals: land under contract or in entitlement on a data center thesis faces repricing or termination.
Shift to the cities: demand may move to incorporated cities that still allow data centers, though that map is shrinking fast (see below).
Existing facilities: operating centers and exempt smaller facilities appear unaffected, which could make permitted capacity scarcer and more valuable.

What comes next

The county is following a wave of San Gabriel Valley cities:

City	Action
Monterey Park	Voters passed Measure NDC in June 2026 with 86% support, banning all data centers
El Monte	One-year ban adopted April 2026
Baldwin Park	One-year ban adopted April 2026
Irwindale, Commerce, Alhambra, West Covina	Restrictions enacted or proposed

In Sacramento, Solis’s motion backed state bills SB 978, SB 886 and SB 887 to regulate data centers; SB 978 addresses facilities over 75 megawatts.