Phoenix City Council to consider zoning policy for data centers Article originally posted on HERE on May 13, 2025 Phoenix is on the verge of enacting zoning regulations to limit where data centers can be located. Why it matters: Data centers use large amounts of energy and space and can bring negative effects like noise pollution to surrounding communities, per an analysis by city staff. State of play: The city wants to direct data centers away from mixed-use, walkable and transit-oriented communities. They create few jobs, take up land that could be used for employment and housing, and make “inactive” stretches of street, staff wrote. Zoom in: Under the proposal, data centers would be restricted to areas zoned for industrial and some commercial use. They would have to get a permit before locating in those areas. Data centers would be required to mitigate noise if they’re within 300 feet of residential areas, be at least a half-mile from high-capacity transit, and use decorative features for architecture and landscaping to “avoid large, monotonous, undifferentiated surfaces” and “large, monolithic buildings,” according to a staff report. The big picture: Data centers house computer equipment for data storage and are essential for companies including Amazon and Google and technologies such as artificial intelligence. The Phoenix metro area has become one of the top data center markets in the U.S. due to low energy costs and a relative lack of natural disasters. Driven by the growth of AI and other technologies, data centers are increasing energy use not only in Arizona but nationwide. By the numbers: There are 164 data centers in Arizona, mostly in the Valley, according to research firm Baxtel. Tricia Gomes, Phoenix’s deputy director for planning and zoning, told Axios that Phoenix has a number of data centers planned. What’s next: The city’s planning commission will hear the proposed policy on June 5, and the City Council is expected to vote on it June 18, Gomes said. Flashback: Chandler became the first Valley city to enact zoning for data centers in late 2022, the Arizona Republic reported. Phoenix was the second to initiate the process in December 2024. What we’re watching: The Corporation Commission last month opened a review on data center policies to find a way to cope with their extensive energy use. One possibility the commission might consider is higher power rates for data centers. In a statement to Axios, Phoenix Mayor Kate Gallego said data centers bring few jobs or community amenities, and that she prioritizes “economic development that results in good-paying jobs and dynamic, walkable neighborhoods.” “Smart development requires a balanced approach,” she said, “and Arizona would benefit from policy parameters to protect our grid and prioritize job creation.”