Data Center planned for south of downtown Phoenix
A new data center project is planned for south of downtown Phoenix after GI Partners acquired over five acres of land. This development follows new city zoning rules that restricted data center locations, though a waiver was approved for this specific property. Meanwhile, residents in Awatuki are actively protesting another data center project under construction in their neighborhood due to environmental concerns.
A new data center project is underway just south of downtown Phoenix, with investment firm GI Partners acquiring over five acres of land for nearly $15 million on September 17th from LKY Development. The site, located near 7th Avenue and Grant Street, is adjacent to an existing APS substation, which LKY Development reportedly worked for years to expand to support a data center.
This development occurs after Phoenix city leaders passed new zoning rules last year, restricting where data centers could be built. LKY Development had reportedly sought $10 million from the city to compensate for the property's decreased value due to these new rules. However, city officials instead approved a waiver, allowing a data center to be constructed on the property.
Separately, residents in Awatuki have been protesting another data center project, a five-building campus under construction near 48th Street and Chandler Boulevard. Protesters, concerned about the impact on air, water, and their residential area, gather every other Saturday. While it's currently unclear if there is opposition to the newly planned downtown Phoenix project, local news outlets indicate they will monitor the situation.