- Mayor Gallego’s Position: During her May 20 State of the City address, Phoenix Mayor Kate Gallego called for an end to state tax breaks for data centers, calling them “antiquated” and no longer necessary for economic development.
- Power Grid Strain: Data centers account for 90% of the industrial electricity load in Phoenix’s development pipeline, raising concerns about long-term energy capacity and business competition.
- Zoning Shift: Phoenix is proposing new zoning rules requiring data centers to prove access to sufficient power and to be located away from major transit hubs.
- Local Pushback Trend: Similar to Chandler’s earlier restrictions, cities are increasingly skeptical of the trade-offs data centers offer—minimal jobs but heavy infrastructure demand.
- Investor Insight: With Phoenix reevaluating how it supports infrastructure-heavy development, investors should track how zoning and utility demands affect land value and new housing project approvals, especially in industrial corridors like Laveen.
(602) 898-3662