City of Industry Advances Energy Storage Project Amid Data Center Controversy

The City of Industry’s planning commission has taken a significant step forward by endorsing the Marici Battery Energy Storage System (BESS) Facility project. On January 27, 2026, the commission unanimously voted to advance the proposal to the City Council, despite rising public concern regarding potential negative environmental impacts and the possibility of data centers being established in the area.

The Bassett Unified School District (BUSD) also made headlines on the same day, as its Board of Education passed a resolution opposing a prior decision made on December 17, 2025, which permitted the establishment of data centers throughout the city. This surge of activism follows recent community discussions about data center proposals in municipalities across Los Angeles County, particularly in nearby Monterey Park.

According to a comprehensive staff report spanning 6,500 pages, the BESS project, proposed by energy utility company Aypa Power, is expected to generate an annual electricity demand of 584,000 kilowatt-hours. The facility will occupy 9.2 acres along Gale Avenue and will involve minor adjustments to an existing substation site.

Aypa Power’s Senior Vice President of Development, Aron Branum, clarified that the BESS facility is categorized as a “front-of-the-meter” energy storage system. This type is typically utilized for large-scale generation and storage, similar to power plants, wind farms, and solar parks. In contrast, “behind-the-meter” systems are more commonly used for data centers, which require stable energy sources to meet their significant power and water needs.

The rise of data centers has become contentious, particularly as they are essential for the infrastructure supporting artificial intelligence technology. Critics argue that these facilities could lead to increased energy consumption, strain on power grids, and adverse environmental effects.

Public outreach efforts for the BESS project were limited, targeting only residents within 300 feet of the site and taking place 20 days before the hearing. The complete 6,500-page report had been accessible since December, leading to criticism regarding the adequacy of public engagement. Sam Pedroza, Assistant City Manager, defended the notification process, stating, “The method of notification is the same process we use for all public hearing projects.”

Branum and city officials sought to clarify misunderstandings regarding social media claims that the BESS would inevitably lead to the establishment of data centers. One resident expressed concern in a Facebook post, stating, “BESS facilities do not exist on their own. They are a core enabling component of data centers, providing backup power and load balancing for energy- and water-intensive industrial operations.”

The staff report included a mitigated negative declaration (MND), asserting that the project would not cause significant environmental impacts. Similar statements in other municipalities, such as Monterey Park, have drawn criticism for being less rigorous assessments under the California Environmental Quality Act.

While the report acknowledged potential significant effects on cultural resources, geology, noise, and tribal cultural resources, it also claimed that these impacts could be mitigated to “less than significant” levels with appropriate measures. Concerns regarding fire hazards, particularly in light of recent incidents at facilities like the Moss Landing Power Plant, were highlighted during public comments.

One resident, Sandra Martinez, voiced her worries, emphasizing the existing pollution in the area and its impact on her children’s health. Martinez, who has four children suffering from asthma, articulated the potential risks of disturbing the ground and releasing hazardous materials, stating that the consequences could range from adverse health outcomes to fatalities.

The community’s concerns were echoed by Samuel Brown-Vasquez, a community organizer who attended both meetings, who described multiple “red flags” surrounding the project. Another resident, Tiffany Lo, raised questions about the implications of the BESS project on nearby communities, suggesting that boycotting local businesses might be the only way to draw attention to their concerns.

The City of Industry, officially incorporated on June 18, 1957, was originally designed as a hub for manufacturing and industrial development. However, the current demographic reality has changed, with residents now living in proximity to proposed industrial sites.

BUSD President Aaron Simental emphasized the importance of including school districts in zoning discussions, stating, “This board is not a municipal body, but we do have the right to make a point of view that, when it comes to zoning decisions, we should be looped in.”

In response to BUSD’s resolution, the City of Industry chose not to comment, citing a lack of notification regarding the resolution and expressing intent to continue engaging with the community as they have with all projects. At present, there are no data center proposals scheduled for discussion in future city council meetings, but the conversation surrounding energy storage and data centers remains heated as residents voice their concerns over potential environmental impacts.