Phoenix Implements New Zoning Rules for Data Centers to Balance Growth, Neighborhoods, and Environment

The Phoenix City Council has approved new zoning regulations for data centers in response to the rapid expansion of the industry across the city. The rules limit where data centers can be developed, restricting them from setting up in areas zoned for residential, commercial, or mixed-use purposes. Key elements of the new policy also include noise restrictions and a requirement for gated fences and walls to be enclosed with buildings or hidden from public view to reduce neighborhood disruption.

City officials say the changes aim to balance technological growth with long-term planning priorities, like preserving land for housing and minimizing environmental impact. Phoenix currently has about 60 data centers and expects more to come, given the global demand for AI and cloud computing. The fresh guidelines allow new centers in industrial zones only and raise environmental concerns, especially with demands on power and water resources.

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