---
title: 44 People Spoke Against It, and the Developer Withdrew. Then El Segundo Voted 4-1 to Pause Data Center Approvals.
description: El Segundo pauses data center approvals for 45 days to reassess definitions, zoning, and application processes following public opposition to a proposed project
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---

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California Local Ordinance Data Center

# 44 People Spoke Against It, and the Developer Withdrew. Then El Segundo Voted 4-1 to Pause Data Center Approvals.

![Obedio research](https://7528315.fs1.hubspotusercontent-na1.net/hub/7528315/hubfs/raw_assets/public/mV0_d-cms-elevate-theme_hubspot/elevate/images/avatar-placeholder.jpg?width=48&height=48&name=avatar-placeholder.jpg)

 Obedio research

October 14, 2026

On September 15, 2026, the El Segundo City Council voted 4-1 to stop approving data centers for 45 days. Mayor Pro Tem Baldino made the motion and Council Member Keldorf seconded it. Mayor Pimentel and Council Member Giroux also voted yes. Council Member Boyles voted no.

The vote came 68 days after a developer pulled a plan for a five-story, 230,780-square-foot data center. The plan would have replaced a hotel. At a Planning Commission hearing on July 9, 44 people spoke against it. During public comment, the applicant, Arjun Shokeen, said he was withdrawing the application. The commission never voted on the project.

The vote is a pause, not a ban. City staff will use the time to review three things. They are how the city defines a data center, where one may be built, and how applications are handled. State law ends this kind of pause 45 days after it is adopted unless the council extends it. An extension needs four of the five council votes. The pause itself got exactly four.

## At a Glance

- **Item:** Ordinance No. 1687, a temporary rule imposing a 45-day pause on data center approvals in El Segundo, California.
- **Vote:** 4-1. Yes: Pimentel, Baldino, Giroux and Keldorf. No: Boyles.
- **Presented by:** Mayor Pro Tem Baldino. City Attorney Mark Hensley read the title.
- **Facility/Project:** A proposed five-story, 230,780-square-foot data center and an electric substation at Nash Street and Maple Avenue, replacing a hotel. Withdrawn July 9, 2026.
- **Effect:** Per the ordinance title, a 45-day pause on any land use approvals, permits or other approvals for building or running data centers. We did not have the full text.
- **Key figures:** 45 days; 4 of 5 votes; 44 speakers against the project on July 9; 17 speakers for the pause on September 15; 49.5 megawatts (a measure of electric power) proposed, as Obedio reported July 8.
- **Fiscal impact:** None, according to the city.
- **Public outreach:** Residents asked the council to schedule the pause. The minutes we reviewed list 17 speakers for it on September 15 and none against.

## What the Council Approved

Ordinance No. 1687 is an "urgency interim ordinance." That is a temporary rule a California city can adopt under Government Code section 65858. City Attorney Mark Hensley read the title aloud. An entitlement is a government approval to build or use land in a certain way. The title says the ordinance imposes a 45-day pause on "the approval of any land use entitlements, permits, or other approvals" for building or running data centers.

The city's summary gave the reason for the pause in one sentence:

> ...to allow staff to review the current definitions and zoning for Data Centers and application procedures for Data Centers and propose any necessary changes.

In plain terms: the city wants time to decide what counts as a data center, which zones may allow one, and how it will review applications.

The ordinance title also says it is exempt from the California Environmental Quality Act. That state law requires environmental review of many projects. We did not have the full text of the ordinance. Three details are not confirmed. One is whether the pause reaches projects already under review. Another is whether it covers data centers that already operate. The third is the exact end date.

The city listed no fiscal impact for the pause. Seventeen people spoke on it, each limited to 1.5 minutes. The minutes we reviewed list all 17 as speaking in favor. Two identified themselves as residents of Westchester and Studio City, and one as a former resident.

## What Was Proposed at the Hotel Site

The city file numbers were Environmental Assessment 1400, Site Plan Review 25-04 and Development Agreement 26-01. A development agreement is a contract that locks in the rules for a project. The Planning Commission minutes describe the plan this way. A hotel would be torn down. A five-story, 230,780-square-foot data center would go up in its place. The plan also included an electric substation. It would step power down from 66,000 volts to 12,000 volts (66/12 kilovolts, where a kilovolt is 1,000 volts). The site is the southeast corner of Nash Street and Maple Avenue.

Obedio first wrote about the plan on July 8, 2026, the day before the hearing, in a story on the proposed 49.5 megawatt data center. A megawatt is 1 million watts. That story listed the details below. They are the applicant's proposal as we reported it then, not confirmed city findings.

- **Size.** Up to 49.5 megawatts of daily demand, or 1,188,000 kilowatt-hours, in a building up to 169 feet tall.
- **Backup power.** 16 diesel generators of 3.5 megawatts each, with fuel tanks sized for 24 hours of runtime.
- **Cooling.** 29 air-cooled chillers on the roof.
- **Schedule.** A proposed 23-month build, from summer 2027 to summer 2029.
- **City deal.** The development agreement would replace lost hotel tax revenue and set a minimum yearly utility users tax payment.

The hotel was a Hyatt Place at 750 N. Nash Street, according to Data Center Dynamics on July 15, 2026. That outlet named Eight Form as the developer. Hoodline reported that the hotel had 143 rooms and that the plans were by Arup.

City staff proposed to handle the environmental review with an addendum. It would add to an existing, approved environmental impact report. That is a detailed study of what a project would do to its surroundings. The report covers the Corporate Campus Specific Plan. A specific plan is a city plan for one area. The minutes say commissioners, staff and consultants talked about three things. They were the noise analysis, why a new report was not required, and the power supply from Southern California Edison. The minutes say speakers argued for a full environmental impact report.

## How the Withdrawal Happened

The July 9 hearing began at 5:30 p.m. Shokeen gave a short presentation. Forty-four members of the public then spoke against the project. The minutes list their concerns as water, electricity and noise. During public comment, Shokeen came to the podium and announced he was withdrawing the application. Because the applicant withdrew, the minutes say no motion was needed.

Data Center Dynamics reported that the announcement drew cheers. It quoted Shokeen: "We're not going to be moving forward with the data center." The same outlet reported that El Segundo already hosts data centers run by Digital Realty, Equinix and Serverfarm. WestsideToday cited reporting from Urbanize Los Angeles. It said defense and aerospace companies in the city's industrial district have said they need data centers nearby.

## Differences and Gaps in the Public Record

Several details differ between sources, and some are missing. The minutes we reviewed do not settle them.

- **Power size.** Obedio's July 8 story gave 49.5 megawatts. Data Center Dynamics and Baxtel reported 50 megawatts. Hoodline, WestsideToday and 2 Urban Girls gave no megawatt figure. The minutes we reviewed do not state one.
- **Building height.** WestsideToday reported 160 feet. Hoodline and Obedio's July 8 story gave up to 169 feet.
- **Property owner.** 2 Urban Girls named Welcome LAX LLC. Hoodline named Welcome Group. Both reported a 2022 purchase of the hotel for about $49 million.
- **Power use.** WestsideToday reported that an environmental study found the data center would greatly increase local power use compared with the hotel. The minutes refer to a determination that no new environmental impact report was required. They give no power figures.

## What State Law Sets for the Next 45 Days

Government Code section 65858 sets the terms. An urgency ordinance of this kind "shall be of no further force and effect 45 days from its date of adoption." Adoption "shall require a four-fifths vote." Forty-five days from September 15 is October 30. That date is our own count. We did not have the ordinance text, so the city's end date is not confirmed.

After notice and a public hearing, the council may extend the pause for 10 months and 15 days. It may then extend it for one year. Each extension also needs a four-fifths vote. No more than two extensions are allowed. Ten days before the pause ends, the council must issue a written report. The report must describe the steps it has taken to deal with the problem. Ten days before October 30 is October 20.

El Segundo has a five-member council. Four of five is exactly four-fifths. If any one of the four yes votes changes, an extension would fail unless another member changes to yes. The city calendar lists a council meeting on October 20 at 6:00 p.m. The city's calendar page showed "Not Included" in the agenda column for that meeting when we checked on October 14. The October 6 council agenda, posted October 1, had no data center item.

## Earlier Requests for a Pause

The city posted the agenda for the September 15 special meeting on September 14 at 4:00 p.m. That meeting ran at the same time as the regular session. The pause sat under reports by Mayor Pro Tem Baldino. It asked the council to adopt an ordinance for a 45-day pause on new data centers. The published agenda has no staff report or ordinance text.

At an earlier council meeting, two residents, Kelly Stuart and John Pickhaver, asked the council to put a temporary data center pause on a future agenda. Pickhaver also spoke in favor on September 15.

At that same meeting, Melissa McCaverty spoke as a resident and Planning Commissioner. She asked about an investigation into speakers who may not have said who employs them at the council's August 12, 2026 special meeting. She asked the council to follow up with the City Attorney about a possible cause of action. The city's agenda shows that meeting was a hearing on an appeal about an electric vehicle maintenance facility, plus a police managers' contract. It had no data center item. The agenda said a speaker who fails to say who employs them, or who is paid $50 or more to speak for someone else, and does not say so, commits a misdemeanor punishable by a fine of $250. McCaverty was one of the five commissioners at the July 9 hearing.

## Timeline

| Date | Event |
| --- | --- |
| 2022 | A hotel owner buys the Hyatt Place at 750 N. Nash Street for about $49 million (2 Urban Girls; Hoodline) |
| June 29, 2026 | 2 Urban Girls reports the planned July 9 hearing. |
| July 8, 2026 | Obedio publishes its story on the proposed 49.5 megawatt data center. |
| July 9, 2026 | Planning Commission hearing. 44 speakers oppose the project. Applicant withdraws during public comment. |
| July 15, 2026 | Data Center Dynamics reports the withdrawal and a 50 megawatt capacity. |
| August 12, 2026 | City Council special meeting on an appeal about an electric vehicle facility. No data center item. |
| Before September 15, 2026 | Residents ask the council to schedule a data center pause at a meeting whose date is not printed in our records. |
| September 14, 2026 | City posts the agenda for a special council meeting with the data center pause item (4:00 p.m.) |
| September 15, 2026 | Council votes 4-1 for Ordinance No. 1687. Seventeen speakers support it. |
| October 6, 2026 | Council agenda for the October 6 meeting, posted October 1, has no data center item. |
| October 20, 2026 | Next council meeting on the city calendar (6:00 p.m.). Ten days before the 45 days end, by our count. |
| October 30, 2026 | 45 days after September 15, by our count. |
| November 3, 2026 | Council meeting on the city calendar. The city also lists a General Municipal Election this day. |

## Why It Matters for Site Selectors and Developers

A withdrawn application did not end the issue. According to its title, the ordinance pauses approvals of data center entitlements and permits. That appears to cover a new application filed during the pause, but we did not have the ordinance text, so the scope is not confirmed. The city's stated purpose is to give staff time to review its definitions, zoning and procedures.

Staff proposed to use an addendum to an older environmental report for this project. Speakers argued for a full new report instead. Another developer who takes the same route may hear the same request at a public hearing.

Power supply came up in the commission discussion. The minutes name Southern California Edison but give no figures.

El Segundo already has operating data centers, according to Data Center Dynamics. That did not prevent opposition. California City News reported that Monterey Park voters approved a data center ban earlier in 2026.

## The Risks and Obstacles

- **The ordinance text was not in the records we reviewed.** The scope and the exact end date are unconfirmed.
- **The vote was at the minimum.** Four of five is the lowest vote that passes. An extension needs four votes again.
- **The pause is short.** It lasts 45 days, about six weeks, for staff to define data centers, review zoning and propose changes.
- **The capacity figure is not in the city minutes we reviewed.** Data Center Dynamics attributed 50 megawatts to planning documents, and Baxtel also reported it.
- **Short notice.** The agenda was posted the day before the vote. No staff report or ordinance text was in the published agenda.

## What to Watch

- The October 20 council agenda: whether the council schedules a hearing to extend the pause, and whether it issues the required written report.
- The ordinance text: whether it covers projects already under review and data centers that already operate.
- The Planning Commission meeting on October 22 (5:30 p.m. on the city calendar): any staff proposal on definitions, zoning or procedures.
- The November 3 council meeting and General Municipal Election, both listed on the city's website.
- The Hyatt Place site at 750 N. Nash Street: whether any new application is filed. None appears in the record.

This article is factual background and is not legal, financial, or investment advice.

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