Pinal County rejects data center despite developer’s concessions

The Pinal County Board of Supervisors has voted down a massive data center project proposed by developer Vermaland, which would have been the largest in Arizona. The proposed 3,300-acre site, located south of Eloy, faced strong opposition from residents primarily due to concerns over water and power consumption.

Vermaland had initially planned 59 buildings and two gas-fired power plants but scaled back the project to 11 buildings and one power plant, relocated the facility further from neighbors, and committed to using a closed-loop water system. The developer also presented economic benefits to the county. However, these concessions failed to sway the board, which voted 4-1 against the project.

Board members Jeff Serdy and Rich Vitiello explained their votes against the project. Serdy stated he sided with the 90% public opposition, while Vitiello cited "too many ifs, maybes and buts" and unresolved questions, including the absence of an identified end-user for the facility. Both expressed doubts about the county's ability to sustain such a large facility's water and power demands long-term.

Kenneth Gillingham, a Professor at the Yale School of the Environment, provided expert context on data center environmental impacts. He noted that modern large-scale data centers can consume millions of gallons of water daily, comparable to a small town. While closed-loop cooling systems reduce water use, they significantly increase electricity demand, often met by natural gas generators that emit air pollutants. Gillingham also questioned the overall necessity and rapid growth of data center infrastructure, suggesting it could lead to higher power rates.