The Data Center Divide
A policy snapshot ahead of the 2026 midterms. Mapping data center incentives, restrictions, and bans through legislation, regulations, and executive actions across all 50 states and 1,462 local jurisdictions.
Town of Oro Valley
Mixed Data Center Policies
Arizona’s rules include equipment-tax benefits for qualifying data centers, but an enacted three-year restriction blocks new tax-relief applications; some descriptions nevertheless use prospective wording. Planning requirements and seasonal limits on local construction-noise restrictions also affect projects.
Rating and summary from Arizona statewide as there are no scored current or future laws outside temporary restrictions for Town of Oro Valley.
pending · Town of Oro ValleyWould require data centers to meet new zoning, setback, water-use, energy, noise, and generator standards, including a 20-megawatt power cap.Oro Valley Case 2602190 — Proposed Data Center Zoning Amendment (2026)
What this means
If adopted as drafted, the 20-MW ceiling applying cumulatively to adjacent or interconnected facilities would substantially restrict larger facilities, while water planning and repeated noise studies add costs. Separation flexibility and courtyard exemptions partly offset burdens. This scores the pending draft only, not present legal effect.
People behind it
- Milini Simms
Principal Planner and official contact for the data-center zoning amendment.
Restrictions & requirementsHide restrictions & requirements6
Conditional proposal: prohibits data centers requiring more than 20 MW, including cumulative demand from adjacent or interconnected buildings or parcels.
Conditional proposal: imposes 250-foot residential separation and 500-foot separation from schools or public parks, subject to Council-authorized reductions.
Conditional proposal: potable cooling water requires utility-director recommendation and Council approval; a water-use and conservation plan must quantify demand and establish supply capacity.
Conditional proposal: requires post-construction noise testing before occupancy, annual peak-operation noise studies for five years, and annual power-use verification for five years, with later reporting possible.
Conditional proposal: generator use is limited to backup/emergency use except testing; testing is restricted to weekdays 8 a.m.–5 p.m., with screening and pre-installation air-compliance verification.
Conditional proposal: ancillary facilities may occupy no more than 10% of building floor area, must serve on-site enterprise functions, may not lease third-party services, and may not occupy a separate stand-alone structure.
Benefits & exceptionsHide benefits & exceptions4
Conditional proposal: data centers would be exempt from courtyard and pedestrian mall requirements in the draft's C-1, C-2 and T-P development standards.
Conditional proposal: Council may reduce separation distances where major barriers mitigate impacts, providing site-specific flexibility.
Conditional proposal: recognizes ancillary data centers serving on-site enterprise functions, subject to the draft's restrictions.
Conditional proposal: uses a tailored parking ratio of one space per employee during the largest shift, rather than a generic floor-area ratio; no comparison to existing parking burdens is asserted.
Sources
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