Developer withdraws controversial El Segundo data‑center proposal after packed public hearing

The developer of a proposed five‑story, roughly 237,000‑square‑foot data center at 750 North Nash told the El Segundo Planning Commission on July 9 that he would withdraw his application after an extended public hearing featuring dozens of residents and several environmental groups who urged a full, new environmental impact report.

Staff and the city’s CEQA consultant earlier presented an addendum to the certified 2002 corporate campus EIR, saying the proposed project would not trigger the CEQA thresholds for subsequent review under State CEQA Guidelines section 15162. Rita Garcia of Kimley Horn, the city’s environmental consultant, told the commission the addendum concluded the project would not cause new significant impacts or materially increase the severity of impacts identified in the earlier EIR. Staff described the project’s key technical features: a dedicated 66/12 kV electrical substation on site, 16 enclosed tier‑4 diesel backup generators (each with a ~6,500‑gallon tank), rooftop air‑cooled chillers with free‑cooling modules, a closed‑loop chilled‑water cooling ring and a maximum expected power demand the consultants described at roughly 49.5 megawatts.

Representatives of Southern California Edison explained that a method‑of‑service study would be required to finalize how the substation and connections would be built, and that the utility would perform localized upgrades while asserting the area has substantial overall capacity. Tom Short of SCE said upgrades would be localized to a substation bank and that the company generally requires an applicant‑funded will‑serve study in order to proceed.

Public speakers — including technical experts, parents, teachers, school‑district employees and representatives from Los Angeles Waterkeeper — pressed for a supplemental or new EIR. Speakers raised multiple concerns: that the 2002 EIR is 24 years old and did not study modern high‑density data‑center power and water demands; that the addendum omitted greenhouse‑gas analysis; that backup generators could be tested or operated frequently; that enclosed chillers and fans generate low‑frequency noise and vibration with reported health and sleep impacts; and that the project site is close to schools, childcare centers and adjacent residential neighborhoods. LA Waterkeeper asked the commission not to adopt the addendum, saying the record lacks substantiated evidence supporting claimed net reductions in water use. Several speakers asked for pediatric health risk assessments, weighted noise/vibration analyses and a cumulative impact study.

The developer, who identified himself as Arjun and described himself as the project founder and managing partner, presented the market rationale — proximity to aerospace and advanced manufacturing tenants that require low latency — and said consultants provided conservative, measured estimates and would accept additional testing if required. After more than 40 speakers had appeared, Arjun said he had heard the community and that he would ‘‘be withdrawing the application’’ and not proceed with the data center at this time.

Commissioners and staff treated the applicant’s statement as a verbal withdrawal. Staff said the commission would request the applicant provide written confirmation; if the applicant provides a written withdrawal, the application will not be transmitted to city council and will be administratively removed. Staff noted an applicant may refile in the future and that any refiling would require new public notice and review.

What it means: The verbal withdrawal halts the current entitlement path. Community groups pressed for a new EIR and for more detailed analysis of noise, GHGs, water and cumulative impacts; staff and the CEQA consultant maintained the addendum meets the technical standard for the project as proposed. If the applicant refiles, the city will evaluate any new submittal under current CEQA rules and municipal code.