A proposal to build a 250,000 sq ft (23,225 sqm) data center in Monterey Park, California, is facing opposition from residents.

The Monterey Park City Council was set to consider whether to approve the construction of the facility on Wednesday, but significant public hostility towards the proposal led the council to postpone its decision until January 21, 2026.

Residents expressed concern about the potential of higher utility bills, the environmental impact, and procedural irregularities.

If built, the data center would occupy a 15.8 acre land parcel at 1977 Saturn Street, with construction anticipated to take approximately two years. The site would also house 14 emergency diesel engines with a capacity of 4MW each, suggesting a total capacity of around 56MW.

Australian investment firm HMC Capital is the backer behind the project. As reported by the Los Angeles Times, HMC acquired the site in late 2024 for $39 million, and documents show that it filed for a public review of the development last October.

According to its own website, the firm currently has $18.7 billion worth of assets under management. It launched a data center real estate investment trust called DigiCo Infrastructure REIT last year, and this REIT acquired two enterprise data centers in the US earlier in January.

Monterey Park is a city in the Greater Los Angeles area, one of California’s data center hotspots.