California Valley Towns Block AI Data Centers Over Water Fears

Valley communities hit pause on data centers

California's San Joaquin Valley is emerging as an unlikely battleground in the debate over AI infrastructure, with local governments imposing emergency moratoriums on data center development amid fierce community opposition over water usage.

Tulare County supervisors are set to consider a 45-day emergency ordinance blocking data center development in unincorporated areas, according to Aaron Bock, assistant director of the county's Resource Management Agency. The city of Visalia and neighboring Kings County are pursuing similar measures. Patterson in Stanislaus County and Imperial County have already enacted their own moratoriums after public backlash.

The immediate catalyst: proposals from GlobalStack USA to build small "edge node" data centers—roughly the size of shipping containers—at fairgrounds in Tulare and Kings counties. More than 100 residents packed public meetings in July to voice concerns about water consumption in a region already under state scrutiny for excessive groundwater pumping.

Why it matters

The San Joaquin Valley confrontation illustrates a collision between AI infrastructure expansion and water-scarce communities. As California hosts 296 AI data centers according to Data Center Map, local governments are discovering they lack clear regulatory authority over facilities that can consume water at rates far exceeding typical commercial development. The valley's groundwater crisis makes the stakes particularly acute—if agricultural users must meter and pay for every acre-foot pumped, residents argue, so should data centers.

Water usage remains opaque

Exact water consumption by AI data centers remains difficult to pin down. A 2021 Nature study estimated a typical 1-megawatt center uses 18.6 acre-feet of water annually, but usage varies widely based on size and cooling technology.

Aaron Fukuda, manager of the Mid-Kaweah Groundwater Sustainability Agency, said his agency will require accounting of any data center water use. "We're gonna need to know what they're pumping, whether it's in a formal way or we force our way in to find out," Fukuda told SJV Water.

Governor Gavin Newsom vetoed legislation last year that would have required water usage disclosure. Two new bills, AB 2469 and AB 2619, are again attempting to mandate transparency.

GlobalStack USA maintains its proposed edge nodes use closed-loop cooling systems that "do not require a connection to a municipal or community water supply for routine operations," according to CEO Dan Kang. The company has signed memorandums of understanding with fairgrounds but has not submitted formal proposals.

Data centers already coming to the valley

Despite local resistance, AI data centers are advancing elsewhere in the region. Ameresco announced plans in September 2025 for a 100-megawatt facility at Naval Air Station Lemoore, subject to federal oversight. California Resources Corporation is partnering with Beacon Data Center on a 600,000-square-foot facility at the Elk Hills oilfield near Taft, promising "water efficient cooling" without specifying volumes.

In eastern Kern County, R&L Capital has proposed a 99-megawatt center near Inyokern that would use up to 50 acre-feet annually, according to an application filed with the California Energy Commission.

Regulatory confusion fuels anger

Much of the community frustration stems from unclear jurisdiction. Fairgrounds operate as separate jurisdictions, exempting proposed facilities from county permitting and environmental review. Hanford Mayor Mark Kairis told residents his city council had no authority over the Kings County fairground proposal, though that didn't prevent residents from demanding action.

Newsom recently tasked the California Public Utilities Commission with developing statewide data center regulations, CBS Sacramento reported, potentially bringing clarity to the current patchwork approach.

These details were first reported by Monserrat Solis and Lisa McEwen for SJV Water and published in the Fresno Bee.