By Roland Murphy for AZBEX
Despite being one of the leading markets in the U.S. for data center development, the City of Phoenix is considering new zoning restrictions on where they can be built.
City leaders, including Mayor Kate Gallego, have expressed concerns about data centers’ power usage and perceived negative impacts to surrounding areas, including noise pollution, monolithic aesthetics, low post-construction job creation numbers, and impacts on walkability and neighborhood vibrancy, according to a recent article on Axios.
Metro Phoenix consistently ranks in market-leading positions for data center development, absorption and land availability, all of which have combined to make it an attractive location for new development.
The proposed zoning amendment would restrict data centers to areas zoned for industrial uses and some types of commercial use. They would also have to mitigate noise within 300 feet of residential areas, be at least half-a-mile from high-capacity transit and implement decorative architectural and landscaping features into their designs. A permit would be required before data centers were allowed to locate in those areas.
Writing in Rose Law Group Reporter, Rose Law Group Founder and President Jordan Rose said, “The way the ordinance is currently written will unfortunately regulate new data centers out of existence in the city of Phoenix, which is harmful to our hard fought reputation of being a tech-friendly and progressive city. The ordinance needs some crucial tweaks.”
The Phoenix and Arizona Data Center Market
The Axios article cites research from data center market platform Baxtel, which reports there are 166 data center facilities in Arizona.
The DATABEX project database shows 67 data center construction projects in the state, including master plans, ranging from design through completed projects. These developments have a combined estimated construction valuation of $26.79B.
Inside the Phoenix city limits, DATABEX shows a total of 12 projects with an estimated construction valuation of $6.32B. Three of these projects are in the design stage; one is a master plan; one is pending procurements/in negotiations; three are actively under construction, and four have been completed.
The zoning change ordinance is scheduled to go before the Phoenix Planning Commission June 5 and before City Council for a hearing and vote on June 18.