Casa Grande is about to have its first official test of city's new data center permitting rules

Casa Grande is about to have its first official test of city's new data center permitting rules

News ClipKJZZ·Casa Grande, Pinal County, AZ·10/1/2026

Casa Grande's planning and zoning commission is preparing to hold the first public hearing under the city's new data center permitting rules. The proposed 954-acre Grande Valley Industrial Data Center Campus, submitted by Colliers Energy for LKY Development Company, would include on-site natural gas generation and battery storage, but residents and Rural Arizona Engagement have raised concerns about water and power supplies.

zoninggovernmentelectricitywateropposition
Gov: City of Casa Grande, Casa Grande Planning and Zoning Commission, Casa Grande City Council, Arizona Department of Water Resources

Casa Grande's planning and zoning commission is considering the first data center application under rules adopted after city leaders sought greater oversight of industrial-area projects. The application, submitted by Colliers Energy on behalf of LKY Development Company, proposes a 954-acre campus southwest of the Maricopa-Casa Grande Highway near Montgomery Road, with an on-site natural gas plant and battery energy storage systems.

The project would be limited to 300 acre-feet of annual water use for cooling and power generation, while its electricity plans could involve operating without a grid interconnection or connecting through the local utility. Rural Arizona Engagement plans to participate in the public hearing, citing potential effects on strained water and energy supplies. City Manager Larry Rains and Mayor Lisa Navarro Fitzgibbons have defended the site's location and the new permitting conditions, while acknowledging that the rules may be evaluated over time.