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Judge orders full environmental review for California's planned mega data center

Imperial County Superior Court Judge Brooks Anderholt halted the approval of a nearly million-square-foot data center, requiring a comprehensive CEQA impact report.

Imperial County Superior Court Judge Brooks Anderholt ruled that the proposed Imperial Valley Data Center, slated to be the state's largest at almost one million square feet, must undergo a full environmental impact report under CEQA. He rejected the county's strategy of treating individual components—grading, road easements, electrical systems—as separate projects to sidestep a comprehensive review. The developer, Imperial Valley Computer Manufacturing, argues the 330-megawatt facility will support AI growth and deliver billions in regional economic benefits, but it also requires a new substation, battery storage, natural-gas generators and will consume about 750,000 gallons of water each day.

The city of Imperial and the Sierra Club filed lawsuits, warning that the gas-fired power and water draw could worsen one outlet air quality and strain the Colorado River watershed. County officials and the developer intend to pursue legal avenues, with the developer also scouting sites farther from residential neighborhoods. The decision does not cancel the project but mandates a more detailed environmental analysis before any further approvals.

Why it matters

The ruling could set a precedent for how large tech infrastructure projects are reviewed under California's environmental laws.

In this story

CEQAenvironmental impact reportdata centerartificial intelligencewater consumptionair pollutionlegal challengeeconomic benefitsimperial valley
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