Metro Phoenix city tightens rules for data centers
Peoria, Arizona, is updating its zoning rules for data centers, moving from "by right" allowances to requiring special use permits for greater control and case-by-case review. This local action occurs amidst statewide discussions on data center regulation, including water and energy concerns, and a recently enacted state-level moratorium on tax incentives for data centers. The changes aim to better manage data center impacts on the community.
Peoria, Arizona, is moving to significantly tighten its zoning regulations for data centers, replacing a decades-old "by right" allowance with a new requirement for special use permits. The Peoria City Council has directed city staff to pursue these amendments, aiming to gain more flexibility in approving future data center applications. Councilmember Matt Bullock, who has industry experience, emphasized that various data center types require different considerations, which a special use permit would allow for on a case-by-case basis.
This local initiative aligns with broader statewide concerns about data center development. Arizona Attorney General Kris Mayes recently advocated for a statewide pause on new data center projects, citing water and energy concerns. Similarly, Governor Katie Hobbs has pushed for eliminating tax incentives and imposing a new fee on data centers for their water usage. The Arizona Legislature has already approved a three-year moratorium on tax incentives for data centers, which Governor Hobbs signed into law.
Peoria Planning Director Chris Jacques and Deputy Planning Director Lorie Dever explained that while much of Peoria's industrial land is already developed, the city's role is to ensure appropriate locations and minimize community impact. They noted that other Arizona cities have regulated data centers based on noise, water, power, building scale, proximity to residential areas, and traffic. The proposed changes will also involve updating the definition of a "data center" in the city's zoning code and exploring new setback requirements, with City Council having the final say after recommendations from the planning group.