HMC Capital Withdraws Major Data Center Project in Monterey Park Following Local Opposition April 2, 2026 A significant data center development plan for the Greater Los Angeles area has been scrapped after facing substantial community resistance and regulatory hurdles, highlighting the growing challenges of siting digital infrastructure in densely populated regions. Australian investment firm HMC Capital has formally withdrawn its application to construct a 250,000-square-foot data center in Monterey Park, California. The decision marks the end of the contentious 1977 Saturn Data Center Project, which was first submitted for public review in October 2024. The project's demise was precipitated by sustained local opposition. A petition against the development garnered over 6,000 signatures, leading the Monterey Park City Council to initially delay a key approval vote from December 2025 to January 2026. The council then escalated its response by unanimously approving a moratorium on all data center applications within the Saturn Park area. Officials stated the pause was needed to craft regulations that could potentially prohibit such facilities citywide. In early March, the city voted to extend this moratorium through January 21, 2027, and agreed to place a measure on the June ballot that would permanently ban data centers within city limits. In a letter to the city, HMC Capital cited these regulatory moves as the reason for its withdrawal. "These regulations are not conducive for data center development," the letter stated. "In addition, the Applicant does not intend to contest the forthcoming ballot proposition." The firm added it would seek to establish "productive land uses" supported by the community instead. The cancellation of this project underscores a broader tension in key data center markets like California, where soaring demand for computing power clashes with local concerns over land use, energy consumption, and community impact. The withdrawal from Monterey Park, a city within a major data center hotspot, serves as a notable case study in how local governance and public sentiment can ultimately determine the fate of critical infrastructure projects, potentially influencing development strategies across the industry. Source: datacenterdynamics
HMC Capital Withdraws Major Data Center Project in Monterey Park Following Local Opposition
