Phoenix data center fight sparks legal showdown

Name: Phoenix data center fight sparks legal showdown
Uploaded: 2026-03-26T05:38:54.000Z
Duration: 1 min 44 s
Description: Phoenix is facing a legal challenge over a recently passed ordinance restricting data center construction. Landowners and developers argue the ordinance violates property rights under Proposition 207, which allows them to sue the city if zoning changes reduce their land's value. The city is issuing waivers to avoid potential lawsuits as stakeholders work to resolve the dispute.

News Clip1:44Arizona’s Family (3TV / CBS 5) ·Phoenix, Maricopa County, AZ·3/26/2026

Phoenix is facing a legal challenge over a recently passed ordinance restricting data center construction. Landowners and developers argue the ordinance violates property rights under Proposition 207, which allows them to sue the city if zoning changes reduce their land's value. The city is issuing waivers to avoid potential lawsuits as stakeholders work to resolve the dispute.

zoningoppositionlegal

Gov: Phoenix City Council

The City of Phoenix is embroiled in a legal battle concerning a new ordinance enacted last summer that restricts data center construction. Landowners and developers are actively fighting back, asserting that the ordinance infringes upon their property rights as protected by Arizona's Proposition 207, passed in 2006.

Proposition 207 enables property owners to sue the city if new zoning regulations diminish the value of their land. To mitigate this risk, Phoenix has been issuing waivers to landowners, allowing them to proceed with development and avoid potential legal claims. The city council recently heard a case from an attorney representing a landowner seeking a waiver for a data center project near I-17 and Loop 101.

According to reports, at least 11 landowners have threatened to sue the city. Parties are currently negotiating to "iron out the details," with requests for additional time to reach an agreement. This ongoing "legal showdown" over data center zoning is expected to have significant implications for development across the Valley.