Hypertec Cloud

AI Firm Pays $22.7M for Phoenix Warehouse After Dodging New Zoning Rules

AI infrastructure company 5C AI acquired a Phoenix warehouse for $22.75 million, bypassing new city data center zoning rules through a claim made under Arizona's Private Property Rights Protection Act (Proposition 207). This development occurs amid growing statewide friction over data center expansion, leading to calls for a moratorium and a suspension of tax incentives. The new Phoenix ordinance, G-7396, was designed to introduce special permits and noise limits for data centers.