By Roland Murphy for AZBEX
Land development and holdings company Vermaland is proposing a 3,374-acre site in Pinal County along the Green Canal near Eloy as a major data center and energy hub. The Planning and Zoning Commission reviewed the Comprehensive Plan amendment request in a July 17 work session but took no action.
The request would change the land use designation from Very Low- and Moderate Low Density Residential and existing open space to Employment, General Public Facilities/Services, and Major Open Space.
The Employment area would carve out roughly 1,910 acres for data center and other employment uses. Part of this development could include space for battery energy storage systems. A total of 480 acres would be designated for gas-fired power generation under the General Public Facilities/Services designation and could also include BESS uses.
The ecological functions of the site’s wash systems and wildlife corridors would be preserved through the 983 acres that would be preserved under the Major Open Space-designated portion.
Arizona’s Largest Data Center Development?
A July 30 article in the Arizona Republic provided information from Vermaland CEO Kuldip Verma and said the total development cost could be as high as $33B.
If built as envisioned, the project would add more data center capacity than is currently available in the Valley. JLL recently reported Arizona has a current operational volume of 804 megawatts, with one gigawatt under construction. The Vermaland site’s data center capacity could reach as much as three gigawatts, the article said.
It also expanded on the energy plans for the site, which include upgrading power lines to supply the expected energy needs. Verma said he expects a combination of electrical sources to power the site. The location is next to two large solar projects, and Verma has an application before the Arizona State Land Department to use State land for another.
The first phase of the data center component’s development will also see development of the gas-fired power plant, the article says, which will provide power for the center until the solar components are complete.
Verma said the data centers will focus on the latest cooling technologies to minimize water use, which has, along with electricity demands, become a major point of concern for these developments.
In terms of property use, Verma told the Republic companies will be able to rent or buy buildings or lots in the data center complex, and he anticipates construction could start within two-to-three years, with buildout taking place over 10 years.
Commission Concerns and Next Steps
The Pinal Post reports Commission members expressed concerns during the review session. Commissioner Gary Pranzo said power-generating facilities should be separately addressed and not be grouped under General Public Services.
Vice-Chair Robert Klob said developing the project could pose “a logistical nightmare,” given the size of the site and its highly irregular shape.
Next steps will include the full suite of regulatory approvals, including comprehensive drainage reports, environmental analyses, geotechnical studies, County Engineer approval of road improvements, and accommodation of a planned regional multi-use trail corridor that will intersect with the north side of the property.
According to the submittal, a traffic impact analysis will be conducted and provided to the Pinal County Engineer when the tentative site plan is submitted.
Vermaland, LLC is the owner and developer. EPS Group Inc. is the civil engineer and planner.
