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    Home » Legislation & Regulations » Phoenix Delays Data Center Rezone Vote
    Economic Development

    Phoenix Delays Data Center Rezone Vote

    BEX StaffBy BEX StaffJune 20, 2025No Comments3 Mins Read
    Credit: eBay
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    By Roland Murphy for AZBEX

    In our June 17 issue, we gave a detailed look at the Metro Phoenix data center market and proposals in Phoenix, Mesa and Tempe to issue new zoning restrictions on data center development. (AZBEX; June 17)

    One of the news items prompting that column was a planned Phoenix City Council vote on a proposed ordinance to update the general plan and zoning guidelines with new restrictions. We pointed out the timeline from the proposal’s first public mention to its planned vote was much shorter than usual for these types of items and that there had been pushback from economic development officials and members of Phoenix’s Village Planning Committees.

    That pushback seems to have had an effect, as Council opted for a continuance rather than a vote in its June 18 meeting.

    The discussion and possible adoption of the new regulations has been pushed to July 2, according to a June 19 news article.

    Phoenix Mayor Kate Gallego has called for elimination of Arizona’s tax incentive program for data center development, calling it outdated. She has also spoken out against data centers’ perceived negative impacts on walkability, transit, connectivity and other local development issues.

    Data centers are not an articulated use in any of Phoenix’s existing zoning categories, nor are they specifically directed in the General Plan. Proposed developments are reviewed under an informal interpretation of the existing categories under the current structure.

    When Phoenix issued its initially planned ordinance in December, it drew heavily from other cities’ requirements, including Chandler. Chandler was the first Valley city to implement zoning restrictions on data centers.

    The Phoenix ordinance would amend the features that define a data center, establish a special use permit requirement, set what districts a data center can be allowed in, impose distance requirements from other development types—particularly residential, examine noise levels, and mandate assurances of supply from utility providers.

    Economic development officials and members of the development community who deal with data centers have said the proposed changes in Phoenix and other cities would significantly harm Arizona’s continuing emergence as a leading market in the rapidly growing multi-billion-dollar data center industry.

    When the Village Planning Committees reviewed the ordinance, several changes were proposed. Five Committees expressed concerns about the noise level, the requirement for a “will serve” letter from power utilities assuring the minimum power requirements, and the time allotted for discussion and review of the proposed ordinance, according to the article.

    The planned changes set a maximum ambient noise level increase of 5%. Andrew Gasparro of the Ahwatukee Village Planning Committee noted ambient sound levels vary throughout the metro area and recommended including decibel levels as a measuring unit.

    The Village Planning Committees ultimately delivered a mixed bag of results from their discussions and votes. Seven recommended approval of the changes as written. Three approved them with modifications, and four voted to deny. Two of the four voted to deny outright, while two voted to deny with modifications.

    The original text was amended June 5 to change the “will serve” letter requirement to a requirement for an agreement between the developer and the utility company. It also removed a requirement for use of the Phoenix Green Construction Code.

    A memo from City planning staff said three stakeholder meetings had been held with representatives of various data center development interest groups.

    Having received all the new input, Council continued the planned vote. The measure will return to the agenda in two weeks.

    Ahwatukee Village Planning Committee City of Chandler City of Mesa City of Phoenix City of Tempe Data Centers Industrial Kate Gallego Phoenix City Council Phoenix Green Construction Code Phoenix Village Planning Committees Private rezoning warehouse/manufacturing zoning restrictions
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