Phoenix Wins Partial Victory in Data Center Lawsuit
Phoenix Mayor Kate Gallego said the city won a partial victory in a lawsuit filed by Snell & Wilmer on behalf of WBR over Phoenix data-center zoning rules. The city has adopted tighter development controls, including neighborhood setbacks and special-use permits, while broader disputes over water, power, noise and environmental impacts continue.
Phoenix Mayor Kate Gallego said the city secured a partial courtroom victory in a lawsuit brought by WBR and represented by Snell & Wilmer. The case challenges Phoenix’s authority to limit data-center development near residential neighborhoods, but Gallego said unresolved legal issues remain.
The Phoenix City Council has approved an ordinance making new data centers more difficult to build near homes and other sensitive areas, with proposed requirements including noise standards and a 150-foot setback. The city also requires special-use permits for data centers and has issued some waivers. The regulatory debate is unfolding alongside concerns about electricity demand, water consumption and construction impacts from projects including MenLo Digital in the Phoenix area.