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The Data Center Divide

City of Phoenix

Anti-Data Center Policies

Phoenix’s enacted ordinance allows data centers in five zoning districts but requires special permits and location, utility, noise, and design standards for new projects and expansions. It may add costs and delays, while exempting some already-approved projects.

current law · City of Phoenix
Requires data centers in certain Phoenix commercial and industrial areas to get special approval and follow rules for power supply, location, noise, landscaping, and building design.Phoenix Ordinance G-7396 (2025)

What this means

The proposed measure would allow data centers in five zoning districts, but new projects and expansions would need special permits and meet location, utility, noise, and design requirements. These rules could add significant cost and delay, though they would not ban data centers and some already-approved projects would be exempt.

People behind it

  • Directed City staff, along with the City Council, to develop policy guidance and zoning regulations related to data centers.

  • Directed City staff to develop policy guidance and zoning regulations related to data centers.

  • Applicant and proposer of the zoning text amendment.

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  • Represented the applicant and developed, processed, administered, recommended, and submitted the measure.

  • Researched comparable ordinances, developed and proposed the zoning text amendment, and recommended its approval.

  • Deputy City Manager who submitted the measure with the Planning and Development Department.

  • Writer of the staff report and proposed zoning text amendment.

  • Team leader for the staff report and proposed zoning text amendment.

Restrictions & requirementsHide restrictions & requirements20
  • Data centers are allowed only in the C-2, C-3, CP/GCP, A-1, and A-2 zoning districts; they are not authorized in other districts.

  • Every data center requires a Special Permit approved by the City Council upon Planning Commission recommendation, creating an additional public-hearing and approval process.

  • A data center may not be located within 2,640 feet of an approved high-capacity transit station.

  • Data centers are directed away from identified cores, centers, and corridors intended for higher-intensity mixed-use and walkable development, and toward identified redevelopment areas.

  • Preliminary site plan approval cannot be granted until the applicant submits a written or contractual commitment from a local utility confirming sufficient capacity and its commitment to supply the facility's energy demand, including within two years where specified.

  • The Special Permit may impose additional stipulations or study requirements concerning fire protection, water consumption, power consumption, on-site energy generation, noise, hazardous materials, and other health or safety issues; noncompliance may support permit revocation.

  • For sites within 300 feet of residential zoning, the data center and its on-site mechanical equipment generally may not increase existing ambient noise by more than 5%, unless a different standard is imposed as a Special Permit condition.

  • A data center near residential zoning must provide a third-party acoustical-engineer noise study with baseline measurements at the nearest residential zoning district's property line; the ordinance also specifies study limits of 55 dB(A) from 7:00 a.m. to 10:00 p.m. and 45 dB(A) from 10:00 p.m. to 7:00 a.m., unless the Special Permit sets a different standard.

  • Approved noise-mitigation measures become final site plan conditions, and a final certificate of occupancy may not be issued if the applicable noise limit is exceeded.

  • Mechanical equipment, including transformers and generators, must be set back at least 150 feet from an abutting right-of-way or residentially zoned property and fully screened by an integrated building or a qualifying decorative screen wall.

  • Sites must provide a perimeter landscape setback at least 30 feet wide, with two staggered rows of large-canopy trees, at least five five-gallon shrubs per tree, and groundcover with at least 75% live coverage; enhanced landscape setbacks may require greater tree and shrub density.

  • Data center buildings, including facades longer than 100 feet and all building sides, must meet enhanced architectural standards requiring variation and detailing in materials, colors, textures, height, windows, articulation, building entrances, and similar features rather than a monolithic design.

  • Data centers must provide art within the private development, including qualifying facade or screening art where applicable.

  • Each street frontage must include a detached sidewalk at least six feet wide separated from the curb by a landscape strip at least eight feet wide, with large-canopy trees on both sides providing at least 75% shade and landscaping providing at least 75% live coverage.

  • On-site pedestrian pathways should receive at least 75% shade, and adjacent dedicated multi-use trails should receive at least 50% shade at tree maturity.

  • Existing or new visible overhead electric, communications, cable television, and on-premises wiring must be placed underground unless a technical appeal is approved.

  • Data centers must use dark-sky-compliant lighting.

  • Data center building design is directed to incorporate energy-efficiency measures.

  • A facility is treated as an accessory use rather than regulated as a data center only if it occupies no more than 10% of the gross floor area of all on-site buildings, serves the on-site owner's enterprise functions, and does not lease data services to third parties.

  • The new data-center regulations and design guidelines do not apply to facilities that had final site plan approval, or were specifically permitted or addressed in a City Council-adopted planned-unit-development narrative, before the ordinance's effective date.

Benefits & exceptionsHide benefits & exceptions8
  • Creates a formal zoning definition for “data center,” making the use specifically recognized in the Phoenix Zoning Ordinance.

  • Allows data centers in the C-2, C-3, CP/GCP, A-1, and A-2 zoning districts through a City Council special permit after Planning Commission review, subject to required studies, performance standards, stipulations, and impact-mitigation conditions.

  • Allows a proposed data center to proceed to preliminary site-plan review after a local utility company provides a written will-serve letter or contractual commitment confirming that it can supply the facility’s energy demand within two years.

  • Permits data centers within 300 feet of residential zoning districts when a third-party noise study shows that the facility and its on-site mechanical equipment will not increase existing ambient noise by more than 5%, subject to required mitigation.

  • Excludes certain on-site enterprise facilities from data-center-specific regulations when they occupy no more than 10% of the gross floor area of all on-site buildings, serve only the property owner’s enterprise functions, and do not lease data services to third parties.

  • Exempts data-center projects with qualifying site-plan approval before the ordinance took effect from the newer data-center regulations and design guidelines.

  • Protects data-center uses that were specifically permitted or specifically addressed in a City Council-adopted planned-unit-development narrative before the ordinance took effect from the newer data-center regulations and design guidelines.

  • Directs data centers toward identified redevelopment areas where infrastructure investments are needed.

Sources

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