Business
‘You’re a liar.’ Why the world’s biggest building boom has run into a wall in California
Bryan Marsh was booed by the crowd as he approached the podium in Monterey Park’s City Hall. Things weren’t going as planned.
In front of a wall of people holding “No Data Center” placards, he outlined how his company, Australia’s HMC StratCap, invested tens of millions of dollars and became the city’s largest landowner after years of negotiations, clearances and hearings.
City officials had previously welcomed its plans to build a sprawling, new data center and the jobs and tax revenue that would follow, he said, but then things suddenly changed.
“There was no widespread opposition,” until late last year, he said as people in the room yelled, “You’re a liar!” “Now, for the last few months, the city has faced intense public pressure.”
California’s notorious NIMBYs have a new cause. They are worried that the data centers that power artificial intelligence will lead to pollution, higher power bills and worse. It is a nationwide movement gaining momentum and particularly poignant in California, arguably the birthplace of the AI boom.
City officials had previously welcomed plans to build a sprawling, new data center and the jobs and tax revenue that would follow.
(Gina Ferazzi / Los Angeles Times)
It’s also one of the reasons most blue-collar jobs tied to the unprecedented buildout of data centers are going to other states.
Medhi Paryavi advises governments and companies on data center projects across the country. When he recently suggested California to a European executive looking to invest hundreds of millions of dollars, he was quickly dismissed.
“Absolutely not!” the executive snapped back, said Paryavi, the chairman of the Washington D.C.-based think tank International Data Center Authority.
The aversion to California is pretty standard in the industry. Land is expensive, electricity rates are high and there are too many regulations. Meanwhile, new roadblocks pop up regularly as the state’s outspoken citizens change the rules and protest.
Investors with a choice often choose elsewhere.
Signs of protest pepper frontyards in a neighborhood in Monterey Park on Wednesday.
(Robert Gauthier / Los Angeles Times)
“They’re looking for cost, time and availability of power,” said Paryavi. “California is not on the map.”
The artificial intelligence revolution might be led by companies from California, but most of the facilities housing the chips — and the jobs that come with building and maintaining them — are in other states.
Tech companies led by Microsoft, Google, Amazon and Meta are projected to spend $710 billion on data center buildouts this year alone, according to JLL, a real estate investment firm.
Despite huge plans, seemingly insatiable demand and low vacancy rates, the total capacity of data centers under construction declined last year for the first time in five years, according to CBRE. While construction boomed in some places such as Chicago and the Dallas area, those gains were offset by declines around Silicon Valley, northern Virginia and elsewhere, CBRE data showed.
A technician works at an Amazon Web Services AI data center in New Carlisle, Ind., on Oct. 2.
(Noah Berger / Associated Press)
Legacy markets such as California and Oregon are expected to lose more than half of their relative market share, with Texas set to become the country’s leading data center market within the next three years, according to a report by Bloom Energy, an energy company.
An estimated $98 billion in projects were blocked or delayed in the second half of 2025, more than all cancellations since 2023, said Data Center Watch, an organization tracking opposition to data centers across the U.S.
In California, some areas such as Vernon have welcomed data center investment, but there is a growing list of locals trying to stop data centers in Imperial County and elsewhere.
Progressive lawmakers Bernie Sanders and Alexandria Ocasio-Cortez recently introduced a bill to pause all new data center construction until federal guardrails and safeguards are instituted for workers, communities and the environment.
The proposed data center in Monterey Park — the size of four football fields — is close to homes. It is expected to consume three times the energy used by the entire city, which residents say will raise their electricity bills and also increase noise and air pollution.
The empty property on Saturn Avenue had plans to be converted to a data center in Monterey Park, Calif.
(Robert Gauthier / Los Angeles Times)
The crowd of more than 200 people who gathered at its City Hall was overwhelmingly opposed to the data center. Supporters of the project were only a tiny minority. For hours, person after person stepped to the microphone to announce their anxiety. The center will hurt property values, AI takes jobs, big AI is a threat to democracy, it’s a “class injustice.”
“The tech bros are absolutely the Epstein class,” said one. “They are not the working class.”
“Let’s make this town a place where people want to come live, where people want to do real things, where they are not relying on a robot or a program or an app to run their lives,” said another.”
Supporting the data center, and trying to avoid a vote on its existence, were only a few people from HMC StratCap and some union representatives in orange worker vests.
They pointed out that the big investment had already been agreed to, would create jobs and that it was hypocritical for the city’s citizens to want the fruits of technology while, at the same time, being unwilling to accept its infrastructure.
“Everybody loves the juice, but they don’t like how it’s squeezed,” said a member of the sheet metal workers union from the area. “I am going to fight for my members to have a job to work at.”
To be sure, it is much more than just NIMBYism that makes it tough to build in California. Regulations aimed at protecting consumers and the environment make it harder to access the power that data centers need. The regulations also contribute to the high rents and building costs.
“There’s a lot of legislation, and a lot of red tape in the state of California you have to go through in order to get data centers approved,” said JLL real estate broker Darren Eades.
NTT, Vantage Data Center and downtown San José on Tuesday, July 30, 2024 in Santa Clara, Calif. Dozens of data centers being built for artificial intelligence are eating up Calfifornia’s electricity.
(Paul Kuroda / For The Times)
One example he pointed to is the small power plant exemption, which stipulates that construction over 50 megawatts requires additional paperwork and a longer lead time for approvals. Larger data centers these days need 20 times that amount of power.
All of this makes it more likely that investors will avoid California. As hundreds of billions of dollars are being spent building data centers, it will lead to jobs in other states and countries.
“While it is the cradle of innovation, Silicon Valley is not the cradle of delivering AI outputs and delivering economic results,” Paryavi said.
Following the seven-hour hearing, council members greenlit a June ballot measure allowing residents to vote on a ban.
It was a victory for a new activist group called No Data Center Monterey Park, which spearheaded the rapid grassroots mobilization and worked with San Gabriel Valley Progressive Action to sign petitions and raise awareness. To pack the City Hall meetings, activists set up a mahjong parlor and a traditional Chinese lion dance performance to engage the largely Chinese community.
For HMC StratCap the council’s decision marked a significant blow. The Australian firm invested $40 million to acquire a 200,000-square-foot property intended for data centers, along with a larger adjacent parcel of land for an undisclosed development.
Things turned sour despite reassurances that the data center would generate $5 million in annual revenue to support park maintenance, libraries and repairs without raising residential taxes.
HMC StratCap has to win the vote in June or give up on the project. If it has to do that, it will be forced to sue the city.
“Our preferred path is not to litigate,” HMC’s Marsh said at the hearing. “We must, however, protect our legal rights.”
Now it looks like HMC StratCap may be giving up on the project.
A letter from its parent company in Australia, dated March 31 and posted on Monterey Park’s official website, said the company has withdrawn its application to build the data center.
The letter pointed to new restrictions on data center development in the city and the June vote on a ban.
“These regulations are not conducive for data center development,” it said.
Business
Video: Skilled Foreign Workers Think About Leaving the U.S.
These highly skilled, highly educated foreign workers have been documenting the challenges of trying to build a career in the U.S. “If I don’t find a job, I have to leave the country.” “I sent out 907 applications.” “Have I ever truly relaxed in America?” They need an H-1B visa, which is given through a lottery system that allows U.S. companies to hire highly skilled international professionals for up to six years, in industries like tech and medicine. But the Trump administration has made changes to the program, requiring companies to pay a high fee and enforcing new rules that prioritize higher-paid foreign workers, in an effort to make more jobs available to Americans. This has forced some foreigners to rethink their career plans. “I think the U.S. is still the golden standard.” Wen-Hsing Huang came to the U.S. from Taiwan in 2022 for the tech scene, and was hired by Amazon on an H-1B visa. “I want to use my talents to change the world, and I think the United States was the best platform to do that.” Ananya Joshi came from India to attend a master’s program in Chicago in 2022. “So it was actually my my father’s dream that I had inherited because my father couldn’t go because of his financial situation.” Haina, a Chinese national, fell in love with the U.S. while studying in New York. She got her H-1B in 2022. “I remember there were a lot of companies, they would be able to sponsor.” Haina said she’s experienced a recent shift, where it has become harder to find companies that sponsor H-1B visas. “This time when I was job searching, I didn’t realize it could be a deal breaker. I just had my second interview of 2026, and it was a pretty short call.” (Recruiter) “I don’t think we’re eligible or able to do sponsorship for this role at the moment.” “They don’t even really get to know if I’m qualified, am I experienced, or anything. The decision is already made at that point.” “Please, please make sure that the company you’re about to work for has experience handling international hires.” Joshi said a start-up she interned with during grad school rescinded their promise to sponsor her H-1B visa. “Ask for everything in writing. And then there were jobs that were contract jobs. They would just reject me. They would only need people with a green card or a U.S. citizenship.” Even with an H-1B and a six-figure salary, Huang said he felt himself becoming anxious, as tech layoffs ramped up and Trump’s immigration policies kept changing. “I woke up every morning with this knot in my stomach, because my entire life depended on the policy I couldn’t control. The United States seems not very welcoming to immigrants that contribute to this country.” “The signals are, like, pretty clear at this point. They want to make this H-1B, is, like, risky and also, like, harder.” Hello, everyone.” Despite that, Haina says she’s determined to keep looking for a job until she’s forced to leave the country. “The pressure about where I’m going to be in the next of my career or, like, my life. I sort of like lost the ability to enjoy my life or just be happy.” “So I had to leave the U.S. Of course, I expanded my search beyond the U.S. Found a job in Germany.” Joshi packed up her life and started a new role with a European biotech firm in January. “I think I left at a good time, because there would have been more stress. I would have been stuck in a loop.” “It’s an endless cycle of anxiety.” After quitting his job at Amazon, Huang is now back in Taiwan, planning to launch his own company. “To bet on building an A.I. company that gives me complete control over my time, location and future. Staying in the United States is no longer the only way to achieve my American dream.”
Business
Trader Joe’s expands with two new locations in California
Trader Joe’s plans to open two new stores in California.
The stores will be located in Paso Robles and Anaheim Hills, part of a batch of 10 new nationwide locations the company announced last week.
The additions are part of the company’s growing nationwide expansion.
The popular grocery chain plans to unveil at least 20 locations this year, two of which have already opened their doors, Nakia Rohde, a spokesperson for Trader Joe’s, told The Times.
Trader Joe’s, known for its unique, affordable products and viral tote bags, has undergone rapid growth over the past year, opening 11 new stores in the last two months of 2025.
The Monrovia-based company has been in growth mode since the first store — located in Pasadena — opened in 1967, Rohde said.
“Our goal is always to bring delicious products at great values to as many people and neighborhoods as we can,” Rohde said. “The best way to do that is to open more stores.”
Trader Joe’s announced five new California locations just under a year ago. A store in Costa Mesa opened in December and another Los Angeles location opened in June.
The company’s rapid developments come as grocery stores battle rising inflation, only further complicated by the hike in gas prices.
Some companies have fared better than others. Aldi, a discount grocery chain, plans to add 180 U.S. stores in 2026. Grocery Outlet announced in March that it is closing 36 underperforming stores, including nine in California.
Trader Joe’s is privately held and owned by families who also own a stake in the Aldi supermarket chain, according to its website.
Business
How California Pistachio Farmers Profit From Iran War and Viral Dubai Chocolate Trends
Land area devoted to pistachio growing
Twenty years ago, California farmers bet big on the pistachio. The little green nut was considered niche in the United States, but it was a staple in Iran and the surrounding region.
That gamble has paid off. Demand for pistachios is high as wellness trends draw people to high-fiber, protein-rich foods. They are also a key ingredient of Dubai chocolate, the incredibly popular chocolate bar filled with pistachio cream and kataifi, or shredded phyllo.
Pistachio orchards cover more than 600,000 acres in California, up from 100,000 in 2001. The San Joaquin Valley of California has near-perfect conditions for pistachios, a mix of hot, dry summers and cold, wet winters. The United States is now the world’s largest producer and exporter of pistachios. Iran is second.
Yet more than a month into the war with Iran, ship traffic through the Strait of Hormuz is at historically low levels, which has stymied exports from the region.
The potential removal of a major player in the market is good news for farmers in California, who are likely to get higher prices for their pistachios.
“With this war, it’s going to limit what Iran is able to do, able to ship, to customers in Europe and China,” said Adam Orandi, who farms 1,600 acres of pistachio orchards in the San Joaquin Valley. His father imported saplings from Iran in the 1970s.
For hundreds of years, Iran dominated the market. Pistachios first found their way to California in the 1930s when an American botanist, William E. Whitehouse, brought the nuts back from Iran. Yet only one variety flourished, which was named the “Kerman.”
Pistachio orchards expanded in the 1970s in California, but Iran continued to control the global market until the Iranian hostage crisis of 1979, when students stormed the U.S. Embassy in Tehran and took dozens of Americans hostage.
Various trade embargoes against Iran were imposed and lifted in the following years, but a 241 percent tariff that was put in place in 1986 essentially ended Iran’s reign in the pistachio market in the United States.
Since 2011, the United States has consistently surpassed Iran as the largest exporter of pistachios. Iran has continued to lose market share.
The U.S. leads Iran in pistachio exports
“Production in Iran has been very erratic,” said David Magaña, who analyzes the fresh produce and tree nut industry at Rabobank. “Fifteen years ago, Iran accounted for 40 to 50 percent of global pistachio exports. More recently, Iran’s share has been more like 20 percent.”
The wholesale price of in-shell pistachios — what large manufacturers or retailers pay — has climbed 20 percent in the last 18 months to $4.57 a pound, according to Expana, a market data provider for the agriculture and food industries. In stores, consumers are paying significantly more.
The market is divided into two products: in-shell pistachios, which are sold whole and often roasted, and pistachio “kernels,” the seeds that are used in food production. The explosion of interest in pistachios as an ingredient in desserts and other foods has sharply increased demand for the kernels.
“For years, pistachios were a one-trick pony. They were a salty snack,” Mr. Orandi said. Just a few years ago, he added, he “couldn’t give the kernels away.”
In recent years, California growers have devoted more acreage to pistachios, and the state produced a record 1.6 billion pounds last year. American Pistachio Growers, a trade association, projected that California trees will bear more than two billion pounds of pistachios by 2031.
Pistachio imports have shot up worldwide
But there is one thing standing between the farmers and those projections: California’s water regulations, which people in the industry said may restrict the ability of some orchards to expand.
Pistachios, like other tree nuts, require large amounts of water. The amount needed by an acre of pistachio trees for an optimal crop yield depends on a number of factors, including soil salinity and the age of the trees.
On average, one acre of pistachios consumes over one million gallons of water in a year — slightly less than almonds and walnuts, according to estimates from University of California Agriculture and Natural Resources. For areas in California prone to droughts, the pistachio boom could add stress to the state’s already thin water resources.
The vast majority of pistachios in California — in addition to other nuts and crops — grow in areas classified as of “extremely high” water stress as defined by the World Resources Institute, an environmental research firm. Compared to two decades ago, the amount of water used annually for pistachios in these areas is now tens of billions more gallons than before.
Difference in water use in pistachio-growing regions between 2007 and 2025
Still, there may be benefits to pistachios emerging as a major nut crop of the state, according to Josué Medellín-Azuara, a water resources researcher and professor of environmental engineering at University of California, Merced. They are more tolerant to drought and water salinity compared to walnuts and almonds, and they are consistently a high value crop, he said.
The profitability of these water-intensive crops creates a paradox for the farmers planting them, said Rich Pauloo, a hydrologist. “They consume more water, but you get more money per drop of water.”
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