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Usually, a halt pending environmental review is a pause—not a decision that a data center can never be built. In the Imperial Valley Data Center case, a California judge set aside Imperial County’s approval path and required a project-wide environmental impact report under the California Environmental Quality Act (CEQA) before grading, construction, or other physical development can proceed. The County must review the facility and its related infrastructure together; the ruling did not permanently cancel the proposal.
What the court ordered in the Imperial Valley case
On September 9, 2026, Imperial County Superior Court Judge Brooks Anderholt ruled that the County had improperly approved a lot merger for the proposed Imperial Valley Data Center without first completing the CEQA review required for the whole project. The court set aside that approval path and required environmental review before physical development moves forward. The case was brought by the City of Imperial and the Sierra Club. California Courts Newsroom and KPBS reported the decision.
The judge’s conclusion, as quoted in coverage, was: “Because the record supports a fair argument that the whole project may cause significant environmental effects, an environmental impact report is required for the project presently before the court.” The County may consider lawful revisions and relevant material from earlier environmental documents during the review. KPBS
Why the review must cover the whole project
The County had treated approvals as ministerial and relied on a 2017 zoning review. The judge found that earlier review did not address important details of this specific development. Reporting on the tentative decision identified a battery-storage system, substation, large-scale natural-gas generation, transmission connections, and cooling and water-treatment infrastructure among the features requiring examination. Data Center Knowledge
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The court also rejected handling connected approvals as unrelated pieces. As quoted in reporting: “The grading, lot merger, road vacation, electrical facilities, water systems, and related infrastructure serve one objective: construction and operation of the data center campus.” The County must identify and review that integrated project rather than evaluating component approvals in isolation. KPBS
What is proposed
Data Center Knowledge described the proposal as roughly 950,000 square feet, with a 330 MW data-center load, a 330 MW substation, an 862 MWh battery-energy-storage system, and an emergency-generation facility with 132 natural-gas generators. The reported project description also includes cooling and water-treatment facilities, water tanks, a retention basin, and transmission interconnections. These are figures for the proposal, not verified measurements of a completed or operating facility. Data Center Knowledge
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Potential effects to assess
Court and news accounts identify energy demand, water supply, drainage, air quality, greenhouse-gas emissions, and effects from natural-gas generators as issues for review. The California Courts Newsroom summarized potential effects on water, energy, air quality, and other resources. California Courts Newsroom Data Center Knowledge
Can construction restart after the review?
The ruling is not a permanent ban. It requires the County to complete the project-wide CEQA review before allowing the affected development to proceed. The review may lead to revisions or further approvals, but the ruling itself does not establish that the project will ultimately be approved or specify when construction could begin.
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As of October 7, 2026, the available accounts do not establish whether the developer filed an appeal, obtained a stay, or whether the County had begun the required review. They also do not establish a review timetable or restart date. California Courts Newsroom KPBS
The project review is separate from the countywide moratorium
Imperial County also adopted an emergency pause on new data-center development. In a separate case, a judge struck down that moratorium because the County had not shown enough evidence of the current and immediate threat required for an emergency moratorium. That decision did not restore this project’s approvals or authorize construction: the project-specific CEQA review requirement remained in place. KYMA
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CEQA is not the same as NEPA
This case concerns California’s CEQA process and County approvals for a private proposal. The federal National Environmental Policy Act (NEPA) is a separate process. For a qualifying major federal action, an agency generally uses an environmental impact statement, an environmental assessment, or a valid categorical exclusion, depending on expected effects and applicable rules. The available accounts do not establish that NEPA applies to this project. Federal district court order
Executive Order 14318, dated July 23, 2025, directs federal agencies to identify and consider categorical exclusions for qualifying data-center projects, subject to applicable law. It does not change the fact that the Imperial Valley project halt arose under CEQA. White House
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