Pima County will develop moratorium for data centers

The Pima County Board of Supervisors voted 3-2 to proceed with developing a four-month moratorium on new data center permits in unincorporated Pima County. This temporary halt aims to allow the county to complete a comprehensive zoning code text amendment that will regulate data center development.

Board Chair Jen Allen stated that the decision was partly prompted by Governor Katie Hobbs' three-year statewide moratorium on new sales-tax breaks and incentives for data centers, which led to a surge of applications before its July 1 implementation. Allen expressed concerns that developers were trying to circumvent future regulations. Supervisors Rex Scott and Steve Christy cast dissenting votes on the moratorium proposal.

County Administrator Jan Lesher is tasked with collaborating with county attorneys and departments to draft the moratorium resolution. The county expects a draft of the zoning amendment, which will incorporate elements from Tucson's recently adopted data center regulations and those of other jurisdictions, to be ready within three to four months. This draft will then undergo public and stakeholder review, followed by a formal hearing process involving the Planning and Zoning Commission and the Board of Supervisors, potentially taking up to six additional months.

Additionally, the supervisors directed the county administrator and attorneys to revise the county's due diligence process. This revision focuses on strengthening environmental impact assessments and the use of non-disclosure agreements for large economic development projects, such as data centers, especially those with high water or energy consumption. This move follows a controversial 3-2 vote last June to sell county land for Beale Infrastructure's "Project Blue" data center, a decision that led to the earlier adoption of the impact assessment and NDA policies.