The Casa Grande City Council met in a July 20 study session, after this issue went to press, to discuss the circumstances surrounding a property rights claim arising from zoning policy changes that impacted a potential data center development.
The Barnes Family and its associated entities own a site near the SWC of Bianco and Clayton roads. If developed, the campus could include up to 13 data center buildings covering 3.25MSF.
Owner representatives requested a zoning interpretation last year to establish whether data centers were an appropriate use under Casa Grande’s I-2 General Industrial zoning. The Planning Department issued an interpretation saying the use was allowed under the existing Casa Grande zoning regulations, even though data centers were not specifically identified in the zoning code at that time.
Later, the Planning and Zoning Commission recommended changing the City zoning code to recognize data centers under both I-1 and I-2 industrial zoning.
In September 2025, City Council voted instead to require data center developers to secure a conditional use permit, rather than allow the project type as an allowed use by right. The change was officially adopted that October.
An Arizona voter-approved measure known as Proposition 207 was passed in 2006 and allows landowners to seek damages if government entities enact zoning or land use changes that reduce the value of their property.
After Council passed the CUP requirement, the landowners filed a Prop 207 notice with the City seeking either $140M in compensation or a waiver that would allow data center development on the site without requiring the CUP.
City officials say the requested waiver would not change Casa Grande’s zoning regulations, since it only applies to the specific property and, if approved, the process would still establish operational requirements for water and power use, noise mitigation and other concerns.
The waiver would only apply to the land use. Any development on the property would have to comply with all applicable regulations.
The July 20 session was scheduled to examine the City’s options under Arizona law and to review the waiver process.
Any official action will have to be taken in a later meeting.
Casa Grande has set up a webpage with frequently asked questions about the waiver process and the current request. (Source: PinalCentral)