Attachment A - Item 108 - Back-Up Memo.pdf
Extracted text (via pymupdf)
68668 characters
To:
From:
City of Phoenix
PLANNING AND DEVELOPMENT DEPARTMENT
Alan Stephenson
Deputy City Manager
Joshua BednarelG
Planning and Development Director
Date:
June 26 2025
Subject: ITEM 108 ON THE JULY 2, 2025, FORMAL AGENDA - PUBLIC HEARING -
AMEND CITY CODE - ORDINANCE ADOPTION - DATA CENTERS - Z-TA-2-25-
y (ORDINANCE G-7396) - CITYWIDE
Item 108, is a request to hold a public hearing on a proposed text amendment Z-TA-2-25-Y
to amend the Phoenix Zoning Ordinance Chapter 2, Section 202 (Definitions) to add a
definition for data centers; amend Chapter 5, Section 507 Tab A.I1.D (Guidelines for
Design Review, City-Wide Design Review Guidelines, Specialized Uses) to modify the
section title and add design standards for data centers; and amend Chapter 6, Section 647
(Special Permit Uses), Section 647.A.2 to add data centers within the C-2 (Intermediate
Commercial), C-3 (General Commercial), CP/GCP (Commerce Park/General Commerce
Park), A-1 (Light Industrial), and A-2 (Industrial) zoning districts, with a Special Permit and
performance standards.
Fourteen Village Planning Committees have considered the request. Two VPCs
recommended approval, per the staff recommendation; three VPCs recommended
approval, per the staff recommendation, with direction; one VPC recommended approval,
per the staff recommendation, with a modification; one VPC recommended approval, per
the staff recommendation, with a modification and direction; three VPCs recommended
denial; four VPCs recommended denial, with direction; and one VPC did not have quorum.
The Planning Commission heard this item on June 5, 2025, and recommended approval, per
the memo from the Planning and Development Department Deputy Director dated June 4,
2025, by a vote of 9-0.
The proposed regulatory framework in Z-TA-2-25 responds to the challenges data centers
pose to the health and safety of Phoenix residents. The regulatory framework is also
consistent with City Council adopted policy and initiatives regarding access to healthy food,
health care services and heat response. Staff have compiled an overview of the health and
safety risks data centers present along with the City Council policy and initiative intersections
in a report. The report is attached to this memo as Exhibit A.
Exhibit B attached to this memo is a copy of the proposed text amendment language as
approved by the Planning Commission.
ATTACHMENT A
1
www.vanarsdelltd.com
HEALTH AND SAFETY IMPACTS:
DATA CENTERS
2025
Report prepared by the City of Phoenix Planning and Development Department
Exhibit A
2
Health and Safety Impacts: Data Centers
This report provides additional information regarding GPA-2-25-Y and Z-TA-2-25. The report
outlines health and safety concerns implicated by the evolution of data centers from small
5,800 square-foot office-like buildings to 48-foot-tall industrial buildings on one hundred
plus acre parcels with unprecedented energy demands and on-site power generation. The
report was compiled with input from the Office of Environmental Programs and the Fire,
Community and Economic Development and Information Technology departments.
Growth of Phoenix, and of “Data Centers”
Phoenix continues to be one of the fastest growing cities in the country. According to the U.S.
Census Bureau, Phoenix added more than 16,000 residents to its population between July
1, 2023, and July 2024 putting it in the top ten of growth for cities in the country.i
Phoenix has seen tremendous amounts of investment with this growth in a variety of
industries and sectors, including data centers. Based on a review of available data there are
more than a dozen existing data centers within Phoenix’s boundaries and there are six data
centers in the development review process, with the Planning and Development Department
as of the writing of this memo.
As noted in the staff report for Z-TA-2-25-Y, Phoenix does not define nor explicitly address
data centers in the Phoenix General Plan and the Phoenix Zoning Ordinance. Historically, city
staff considered some data centers as analogous to a general office, or to a
telecommunications facility or “telecom hotel.” Some of these comparisons were
documented by way of informal interpretations in an administrative process by city staff.
However, the concept of a “data center” has changed dramatically over the years, and
today’s data centers bear little resemblance to those that were built twenty, ten, or even five
years ago.
The activities carried out within today’s data centers have also shifted greatly in the last few
years; as described below, an AI data center is a fundamentally different land use when
compared to a traditional office or to the old concept of a “telecom hotel,” and it features
unique equipment and energy use patterns that create unique threats to public health and
safety beyond the borders of the data center property.ii
Data Centers: Change in Scale, Intensity + Health and Safety Impacts
Many of the data centers in Phoenix have been built within the last decade. Within that time
frame, they have increased dramatically in scale.iii Fifteen or twenty years ago, a “data
center” might fill a few thousand feet of an existing office building, without requiring
significant modifications to that building. But one of the more recent data centers built near
40th Street and McDowell Road is more than 80 acres in size and requires the development
of a new electrical substation. This change in the scale and intense use of electrical power
has necessitated a new definition of “data center” to differentiate it from uses which can no
longer be considered analogous and has created the need for new zoning standards that
account for the impact this use has on surrounding properties. Given their size, energy
demands, and potential desire for onsite energy generation, today’s data centers are not
analogous to office uses or telecommunication facilities.
3
Health and Safety Impacts: Data Centers
Related to their intense operations, recent incidents across the United States and the world
have highlighted the health and safety challenges data centers pose to residents including,
but not limited to, strains on energy and water resources, threats to the electrical grids
existing users rely upon, increased emissions created by heavy energy consumption, noise,
heat, and strain on public safety resources. In addition, data centers pose unique risks to
first responders due to their size, sensitivity, and high concentration of batteries and
electrical equipment.
Data Center Energy Demand: Significant Risks to the Electrical Grid
Projections provided by the electricity utility providers Arizona Public Service (APS) and Salt
River Project (SRP) show that energy demand in the industrial sector of their service areas is
anticipated to be more than 90% for data center development (Figure 1). As Phoenix and the
region continue to grow, ensuring that there are sufficient energy resources to support a
reliable electrical grid, especially during the hot summer months, is one of the greatest
challenges facing utility companies and municipalities.
Figure 1: Projected Industrial Energy Demand
In a 2024 updated report by the Lawrence Berkeley National Laboratory, funded by the
Department of Energy at the request of Congress, entitled United States Data Center Energy
Usage Report (2016), historical data center electrical consumption was reviewed back to
2014, and future demand was projected out to 2028. Of note, the report found that by 2018
data centers would account for 1.9% of all electricity consumption in the United States. The
report found that electrical consumption grew at an accelerated rate, with annual growth at
7% from 2014 to 2018, increasing to 18% between 2018 and 2023 and projected to further
increase 13%-27% between 2023 and 2028. That translates into data centers consuming
6.7% to 12% of all the electricity in the United States.ivv
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Health and Safety Impacts: Data Centers
The projected growth in Data Centers represents an unprecedented surge in demand for
electricity. The Department of Energy has predicted that data center electricity use will
double or triple by 2028vi. According to the Arizona Corporation Commission (ACC), Data
Center electricity use has increased 67% over the last year and that figure does not include
the 170-175 megawatts of product under construction as of the end of 2024.vii For context,
according to the ACC, 100 megawatts are enough to power several thousand homes in a day,
and Arizona data centers rank 4th in the nation for electricity they consume when compared
with data centers in other cities.viii
APS recently indicated that it expects its peak load to jump 40% by 2031 (5 years from now).
In late 2024, an APS official explained that the utility “has about 10 GW in pending
interconnection requests from data centers, but the utility cannot commit to serving them
because it would put existing customers at risk of having poor reliability.”ixx
APS provided an update on these figures in response to GPA-2-25-Y and Z-TA-2-25, and as of
the date of this report it “is planning to serve 3.3GWs of power to new data center projects.
In addition, we have a queue of requests from data centers for approximately 15GWsxi. As
APS suggests in its update, the scope of pending data center projects calls for “early-stage
coordination with City departments – such as Planning and Development, Water Services,
and Economic Development” to understand the demand these projects will have on the grid
and “to ensure that new growth proceeds in a manner that is both technically viable and
aligned with broader infrastructure capabilities.” Meanwhile, SRP is currently reviewing
requests for over 17 GW of load from approximately 60 pending data center projectsxii.
The ACC recently opened a new matter to study the likely impacts of data centers on existing
utility customers. In opening the matter, its Chairman explained: “Our utilities are currently
having a challenging time meeting the generational challenges of existing customers. We
need to explore potential solutions for developing behind-the-meter solutions to meet large
customer needs and growth that don't jeopardize the integrity of our grid.”xiii xiv
Data Center Demands on Available Land
This elevated demand for energy coincides with a corresponding increase in demand for
land for data centers. If data centers are treated like regular offices, properties zoned for
commercial, commerce park and industrial land uses can be developed into data centers
with very few restrictions. Commercial, commerce park and industrially zoned land equate
to approximately 20% of Phoenix’s land area (108 square miles / 530 square miles). Of these
108 square miles, only 3% of it (17 square miles) is vacant and ready for development such
as employment, health care, grocery stores or services.
As a fast-growing city, Phoenix has increasing needs for a diversity of jobs, health related
services and access to healthy food. Continued unfettered build-out of data centers within
Phoenix hinders the private sector market’s ability to provide these resources to city
residents.
5
Health and Safety Impacts: Data Centers
Health and Heat in Phoenix (Importance of Grid Stability to the Health and Safety of
Existing Residents and Land Users)
In response to increases in summertime temperatures and the number of days Phoenix
experiences temperatures more than 110 degrees; the City of Phoenix established the Office
of Heat Response and Mitigation in 2021. The Office coordinates programs and policies to
help lower urban temperatures and protect public health. It also tracks trends, collects data,
and collaborates with other governments and organizations to share ideas and solutions for
dealing with heat including the development of the Phoenix Heat Response Plan.
The 2025 Heat Response Plan documents the increased heat challenges and public health
risks Phoenix is attempting to address including:
• The 2024 Heat Season in Phoenix set many records with respect to the severity and
duration of extreme heat conditions. The most notable records from 2024 included
new all-time highs for the number of days with temperatures reaching 110°F (70) and
the number of nights with temperatures failing to drop below 90°F (39).
• The 2024 season also set a record for the number of consecutive days with
temperatures reaching at least 100°F (113). Average high and low temperatures for
June, September, and October all set historical records; average low temperatures in
August were also record-setting.
• Heat-related deaths have increased considerably in Maricopa County since 2014.
Particularly large year-over-year increases were evident from 2015 to 2016 (+83%),
2019 to 2020 (+62%), and 2021 to 2022 (+25%). Another large increase is evident from
2022 to 2023, with an increase of more than 47% to the record high of 625 cases in
Maricopa County that was recorded that year.
Within this context of a growing desert city attempting to respond to the health challenges
that heat poses for its residents, the added strain that an influx of data centers will place on
the energy grid warrants a more strategic approach regarding where they are developed and
what steps should be taken to mitigate their impact on existing users.
Phoenix is not unique in grappling with energy demand challenges posed by data centers,
but a stable electric grid is especially important here because it powers air conditioning,
which is essential to human life for much of the year and which places its own heavy burden
on the grid. The risk to Phoenix and all cities is highlighted by research done by the North
American Electric Reliability Corporation (NERC), the federal regulator for grid reliability. The
NERC founded a taskforce to study electrical grid disruptions caused by data centers and
crypto miners. The NERC released a report in December of 2024 that found that the risk of
power outages will only grow as new data centers come online. Nearly all the United States
will face higher risks of energy shortfalls over the next 5 to 10 years, according to the reportxv.
The data center threat to grid stability and to existing power users is not simply a matter of
total demand. In addition to their unparalleled energy appetite, data centers further stress
the grid with inconsistent flow patterns and short bursts of high usage.xvi This phenomenon
is especially pronounced with data centers that support AI, which produce unpredictable
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Health and Safety Impacts: Data Centers
energy spikes and which “are being built faster than grid upgrades can keep up.”
xviii
xvii These
spikes can lead to immediate grid failures, but they can also cause “bad harmonics” that
degrade the lifespan of connected electrical equipment including home appliances, can
lead to sparks and home fires, and can eventually lead to grid blackouts as effects
compound and escalate.
These effects have been observed in other jurisdictions,
including Loudoun County, Virginia, where bad harmonic readings have been reported to
reach four times the national average.xix These are direct negative impacts on existing users
of all types, so expectations of large-scale intermittent power use must be identified and
addressed on the front end in order to mitigate major adverse consequences on public
health and safety.
Onsite Power Generation and Emissions
One of the data center industry’s responses to the power demand their facilities are placing
on the electrical grid is to try to go it alone by establishing onsite power generation
independent of the grid. This response has been seen in Arizona, where utilities, utility
regulators, and the state legislature have all publicly called for “on-site” or “behind-the-
meter” generation to help ease the impact data centers have on our electric grid. ACC
Chairman Thompson recently stated that “we need to explore potential solutions for
developing behind-the-meter solutions to meet large customer needs and growth that don't
jeopardize the integrity of our grid.”
The utilization of onsite power generation poses numerous challenges including potentially
unregulated and independent power generation without state or federal oversight;
establishing power generating plants in neighborhoods, with all the related impacts to
residents; environmental impacts from air and water emissions, depending how the energy
is generated; the unknown impacts to an existing electrical grid in the event onsite power
generation fails and data centers revert to their backup power all at once. As an example,
power companies in Virginia had to scramble during the summer of 2024 when 60 of the
area’s 200 data centers out of Washington D.C. came off the grid and started using backup
power all at once, nearly setting off a series of rolling blackouts.xx
In 2024, the company xAI opened a data center in southwest Memphis, Tennessee. The
facility had negotiated an agreement with the public utility, Memphis Light, Gas and Water,
to draw 150 megawatts of power from the local grid. This was the amount the utility had
determined it could safely provide without affecting the availability and reliability of power
for existing users – but it was not enough to fully power the data center, which has applied
for an additional 150 megawatts. While its request for additional grid power was pending, xAI
is reported to have installed 35 gas-powered generators on its property. These generators
ignited significant concern and opposition from the surrounding community and from
environmental and health advocacy groups, which cited to the potential human health and
air-quality consequences of what a local lawmaker described as a “gas plant in the middle
of a neighborhood.”xxi
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Health and Safety Impacts: Data Centers
This experience highlights the need to understand where a data center will receive its power.
A data center that produces its own power – either permanently or while a local utility is
ramping up its generating capacity – presents different health and safety considerations than
a data center that gets all its power from a public utility, and large-scale on-site power
production may not be compatible with existing residential or other uses. Even when a data
center can be fully powered by the local utility, it may need a new substation or the
installation of new high-capacity transmission lines, and the impact of such infrastructure
on existing nearby uses should be understood.
The power source for backup and onsite power generation of many data centers is a diesel
generator.xxii As noted by the Washington Department of Ecology in analyzing data centers’
use of diesel power generation:
• Diesel exhaust is a toxic air pollutant, containing fine particles that can cause health
problems for people who are exposed frequently and at high enough levels. These
tiny particles are too small to be filtered out of the air by the nose and upper
respiratory system. The particles go deep into the lungs, where they can cause
damage and chemical changes.
• Nitrogen dioxide (NO2) is another toxic air pollutant that can cause breathing
problems even when you're exposed for a short time, from 30 minutes to 24 hours.
Nitrogen dioxide can make breathing harder for people who already have lung
problems, such as asthma. It also adds to acid rain and smogxxiii.
Nuclear energy has been identified as a dedicated power source for data centersxxiv.
Amazon, Microsoft, Google and Meta are investing in nuclear power to provide power for
their data center needs. These may include “small modular reactors” which are small, cost-
effective sources when compared to the traditionally large (and very expensive) nuclear
power plants most people are familiar withxxv. The Georgetown Environmental Law Review
Online (February 27, 2025) reports that the Virginia legislature adopted a statutory scheme
to incentivize nuclear power to meet growing energy needs of artificial intelligence (AI) from
a zero-carbon, climate friendly, renewable source.xxvi
Onsite nuclear power generation has gained enough support in Arizona that a bill to support
it was approved by the state legislature in its current session. HB 2774, which received
support from all three of the State’s largest electric utilities but was ultimately vetoed by the
Governor, encouraged “small modular nuclear reactors” to “collocate” with data centers by
exempting collocated reactors from the requirement to obtain an environmental
compatibility certificate. The specter of small, loosely regulated nuclear power plants
popping up everywhere to meet the accelerating demand for energy is further proof that the
location of a new data center must be carefully considered, and this consideration must
account for the data center’s expected power sources. As state authorities encourage data
centers to include major power generation facilities, it becomes increasingly important to
carefully consider the locations of such data centers.
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Health and Safety Impacts: Data Centers
Data Center Water Usage
While much of the attention regarding the resource demands of data centers has focused on
electricity, water resources are an area that still must be factored into their evaluation. Data
center water usage has improved in recent years due to changes in the cooling methodology
used, but recent studies suggest that water savings come at the cost of increased electricity
use and point to the industry continuing to need larger amounts of waterxxvii. For desert cities
and water providers like Phoenix, the ability to properly evaluate and regulate data center
water usage is paramount for the City’s survival.
Data Centers and Fire Safety
Data centers represent a new and challenging service area for firefighters. According to the
International Association of Fire Fighters the growing presence of data centers requires
specialized training, lots of planning and close cooperation with on-site security and
engineering teams at these new sitesxxviii.
The City of Phoenix Fire Department has noted the following challenges with data centers:
• Fires in data centers can produce vast quantities of dense, corrosive smoke, which
contains known carcinogens. Visibility may become nearly impossible, and when
combined with unfamiliar building configurations, the prospect of disorientation is
clear. Often, even a small fire isolated by the building's fire protection systems is a
high-risk and long-duration incident for responding firefighters.
• Two physical hazards in large data centers, which are generally not present to the
same intensity as other occupancies, are large lithium-ion batteries and electrical
power.
• Lithium-ion batteries contain volatile electrolytes that can release flammable gases
when exposed to high temperatures or physical damage.
• If a battery generates more heat than it can dissipate for any reason, it can lead to
rapid and uncontrolled heat releases, resulting in a fire (thermal runaway). In many
instances, fire sprinkler systems prevent fire spread, but cannot extinguish.
• Accidental battery overcharging can lead to fires.
• Batteries can be ejected from their casing during a fire, potentially spreading the fire
or causing secondary ignitions.
• Burning batteries release toxic chemicals into the air.
• Due to the large amounts of energy required, electrical distribution and fires involving
electrical components are another possibility. Firefighters must be familiar with the
power disconnect procedures and the vast electrical hazards of large data centers.
• Fire incidents in large data centers can necessitate using large volumes of water to
bring the fire under control, and contaminated runoff is an additional concern. This
runoff may contaminate surrounding soil and could get into the city’s storm drain
system and impact land miles away from the actual location.
• Fires involving lithium-ion batteries also release toxic heavy metal particulates,
requiring specialized decontamination of firefighter personal protective equipment.
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Health and Safety Impacts: Data Centers
Advanced review of proposed data centers would provide an opportunity for the Phoenix Fire
Department to provide critical insight into the proposed location, design and operation of
future data centers. That review will include an assessment of existing resources available
to serve the proposed data center location. Fire resources are not evenly distributed
throughout the City, and in some cases the City may need to invest in new infrastructure,
equipment, or resources to ensure its ability to serve new data center developments, or to
serve new data center developments without leaving existing users unprotected. This
analysis will be especially important when large data centers replace farmland, or other
much lower intensity uses (and such replacements have become increasingly common).
The Phoenix Fire Department works with other emergent technologies to address fire safety
concerns and to ensure safety for building occupants, the surrounding public, and
responding fire crews. As a contribution to this report, the Department wrote that it “is fully
committed to understanding new technologies and the associated evolution of our fire
protection efforts (i.e., fire suppression, prevention, and public education). We are a
recognized industry leader in this space and a couple examples include lithium-ion batteries
and energy storage systems, large warehouses, semiconductors, photovoltaics, electric,
hybrid vehicles, etc..” The Department shared several examples of its specialized
preparation for fires caused by other specialized land uses; those examples were consulted
for this report, and several can be accessed in the references section.
Fire Department review will also ensure compliance with the Phoenix Fire Code and industry
best practices and will allow the Fire Department to learn about and prepare for the specific
energy generation and storage equipment that will be present in a new data center. Energy
storage technologies continue to rapidly evolve, and that makes this level of review critical
to ensure that fire crews have equipment or techniques required based on the design and
chemistry of such equipment. Without the opportunity to prepare for these new risks, the
chance of a fire ignited by batteries or other electrical equipment spreading beyond a data
center’s walls to harm those on nearby properties will be greatly increased.
Data Center Security and Public Safety
According to a recent analysis by the Information Technology Department, data centers are
high-value investments and sometimes high-value targets, which may attract threats from
foreign actors who seek to disrupt data centers for espionage or sabotage, or to access them
for sabotage, disruption, or to exfiltrate valuable information. Considering the size and cost
of today’s data centers, the high profile of many data center owners, and the vast quantities
of data stored within a single data center, this risk assessment should not come as a
surprise. The sophistication and frequency of these attacks, including from foreign
locations, has increased. As more data centers come online in the region, a complex
challenge emerges that requires federal partnerships, strict resource management, and
increased regional costs in cyber resilience and protection to ensure community safety and
sustainability. Phoenix has already seen significant incidents targeting major industrial
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Health and Safety Impacts: Data Centers
facilities, and future data centers storing highly valuable commercial information, or
information related to national defense and security, may face even greater risks. The
location of this kind of sensitive data center should be carefully considered to protect
existing users and to ensure that adequate public safety resources are available in the
relevant area.
Access to Healthcare Services
As one of the largest and fastest growing cities in the country the City of Phoenix has made
providing residents with access to life-saving health care services one of its highest
priorities. To that end, the City recently partnered with Arizona State University and the
Arizona Board of Regents to establish a new medical school in downtown Phoenix to be
opened in 2028.
While there is excitement about the new medical school and the progress it will position
Phoenix and the state to make, there are active areas of need in the health care sector in
Phoenix. Some areas in Phoenix are considered a Health Professional Shortage Area (HPSA).
A HPSA is a geographic area, population, or facility that has a substantial shortage of
primary, dental, or mental health care providers designated by the Health Resources &
Services Administration. For example, in Phoenix’s Laveen Village, there are 12 HPSA areas
and in the South Mountain Village there are 24 HPSA areas. In addition, the Laveen and South
Mountain villages do not have a Level 1 Trauma Center as defined by the Arizona Department
of Health Services. Laveen and South Mountain are home to some of the largest areas where
data centers could concentrate, preventing other development that could serve the
surrounding community. Without an updated zoning framework, it will be nearly impossible
to ensure that there will be any available land for a hospital or other medical services in these
villages.
Access to Healthy Food
The Laveen and South Mountain villages also highlight challenges Phoenix faces in ensuring
its residents have access to healthy food. In 2020 the Phoenix City Council adopted the 2025
Food Action Plan to establish goals, policies and strategies to achieve a robust and healthy
food system for Phoenix residents.
The Food Action Plan analyzes the challenges Phoenix faces in achieving its envisioned food
system. According to the report, there are 55 food deserts in Maricopa County, and there are
43 food deserts in Phoenix that amount to nearly half of Phoenix’s populated area. The Plan
identifies the South Mountain, Laveen and Maryvale villages in Phoenix as areas most
impacted by food deserts.
Like the challenges in ensuring there is enough land area to provide the necessary health
services to residents, Phoenix has a decreasing amount of available land for grocery stores.
Preserving opportunities for access to healthy food, especially in areas that have been
identified as food deserts, is critical for protecting the health of Phoenix residents. Allowing
data centers to uncontrollably fill in and concentrate in these areas would run counter to the
Phoenix’s Food Action Plan and frustrate plans to address food deserts.
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Health and Safety Impacts: Data Centers
Data Center Noise Pollution
One common detrimental health and safety consequence of data centers, which has been
discussed during the public hearing process for Z-TA-2-25, has been noise. While there has
been some debate regarding the minimum standards and methodology the city should
employ, there has been little pushback on the notion that data centers do generate
significant noise with significant impacts to neighboring properties.
Data centers contribute to noise pollution due to the equipment inside making noise as it
operates.xxix Noise around areas of data centers can reach up to 92 dB(A) for sites with
greater densities of equipment, and up to 96 dB(A) inside.xxx The National Institute for
Occupational Safety and Health (NIOSH) threshold for requiring hearing protection is 85
dB(A) over an eight-hour period. As a result, people working in data centers and people
residing in neighborhoods around them may be impacted by noise pollution.
Constant humming and buzzing noises in nearby neighborhoods may have adverse health
impacts including headache, stress, and sleep disturbancexxxi. Poor quality sleep and stress
can also contribute to cognitive impairment and cardiovascular risks.
With more information regarding noise generated by data centers becoming available,
providing a regulatory framework that ensures that they are not located near residents will
help protect the health and well-being of Phoenix residents.
Regulatory Framework: Not a Ban
The City does not have any plan or desire to enact a ban on data centers, and many data
center projects may be warmly welcomed. However, a Special Permit requirement, like the
requirement applicable to a self-storage warehouse in the city’s commercial zoning districts,
would be a vehicle to help contain or mitigate the health and safety impact data centers have
on nearby users. The Phoenix City Council has approved dozens of Special Permits for self-
storage and car dealerships in the last 10 years and may well approve a similar number of
new data centers once health and safety challenges have been adequately addressed.
The Special Permit Process: Response to Years of Council-Adopted Policy + A
Collaborative Framework for the Future
The policy and regulatory framework proposed in GPA-2-25-Y and Z-TA-2-25 position Phoenix
to employ a holistic approach to the development of today’s “data centers,” which bear so
little resemblance to the land uses that once used that same name. This new policy and
regulatory framework are focused on protecting public health and safety from threats that
easily cross the boundaries of a data center property, including fire, power disruption, and
heat, noise, air, and wastewater pollution, and they respond to several existing City Council
adopted policies including the Food Action Plan and Phoenix Heat Response Plan. The
Special Permit process provides opportunities for city staff to evaluate proposed data center
facilities and ensure that the location, design, site and operational features take into
consideration the health and safety needs of the community. The requirements for
agreements with electric utility providers will help the City understand the level of on-site
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Health and Safety Impacts: Data Centers
generation, high-voltage transmission, or other infrastructure that is being approved, and to
evaluate the likely impact of such infrastructure on the health and safety of existing nearby
users.
The Special Permit process will also allow the City to assess the adequacy of public safety
resources near the data center, to assess the likely impact of the data center’s operation on
those resources, and to determine whether additional resources will need to be developed
or deployed. The Special Permit provides an opportunity for landowners, data center
developers, city staff, neighbors and the Phoenix City Council to collaborate and ensure that
new investments in data centers are strategically located within the city limits, and serve the
best interests of the City, neighbors, and the data center developer.
i https://www.census.gov/newsroom/press-releases/2025/vintage-2024-popest.html
ii https://www.forbes.com/sites/rrapier/2025/03/26/how-ai-data-centers-are-reshaping-americas-electric-
grid/
iii See Report by the International Energy Administration (https://iea.blob.core.windows.net/assets/40a4db21-
2225-42f0-8a07-addcc2ea86b3/EnergyandAI.pdf): “Data centres – at least at the scale seen today – are
relatively new actors in the energy system at the global level, and data collection and reporting on their
electricity consumption remain limited.”
iv https://escholarship.org/uc/item/32d6m0d1#page=50
v https://www.eesi.org/articles/view/data-center-energy-needs-are-upending-power-grids-and-threatening-the-
climate (see section “Data Centers as a Paradigm Shift in the Electricity Sector)
vi https://www.energy.gov/articles/doe-releases-new-report-evaluating-increase-electricity-demand-data-
centers
vii https://ktar.com/arizona-business/acc-protect-payers-energy/5693869/
viii https://ktar.com/arizona-business/acc-protect-payers-energy/5693869/
ix https://www.utilitydive.com/news/data-center-grid-reliability-residential-cost-aps-load-growth/732480/
x ACC Chairman Kevin Thompson recently noted “it took Arizona Public Service about a century to build a grid
that meets the 8,400 megawatts demand it has now,” and that the utility will have to “double or triple their
current grid capacity in a very short time to meet anticipated demand.” (https://ktar.com/arizona-
business/acc-protect-payers-energy/5693869/)
xi APS Letter dated June 25, 2025 (attachment A)
xii SRP Letter dated June June 26, 2025 (Attachment B)
xiii ACC Chairman Kevin Thompson, April 10, 2025 statement upon opening “In the Matter of the Commission’s
Inquiry and Review of the Existing Rate Classifications and other Potential Issues relating to Data Centers”
(Docket No. E-00000A-25-0069).
xiv This closely tracks a recent statement by Virginia State Corporation Chair Jehmal Hudson, who has been
quoted stating: “When it comes to adding transmission and generation capacity, we’re trying to make a
determination: how can we fulfill those needs to data centers, but also keep the lights on in the
commonwealth?” (https://www.utilitydive.com/news/data-center-grid-reliability-residential-cost-aps-load-
growth/732480/)
xv https://www.reuters.com/technology/big-techs-data-center-boom-poses-new-risk-us-grid-operators-2025-03-
19/#:~:text=%22What%20it%20tells%20us%20is,U.S.%20Federal%20Energy%20Regulatory%20Commission.
xvi https://www.rcrwireless.com/20250417/fundamentals/ai-infra-energy-spikes
xvii https://carboncredits.com/ais-energy-hunger-is-straining-americas-power-grids-and-your-home-appliances/;
the impacts of AI are so significant that one researcher describes AI as “a big hammer” on the grid
(https://www.datacenterdynamics.com/en/news/ai-data-centers-causing-distortions-in-us-power-grid-
bloomberg/)
xviiihttps://www.datacenterdynamics.com/en/news/ai-data-centers-causing-distortions-in-us-power-grid-
bloomberg/; and https://carboncredits.com/ais-energy-hunger-is-straining-americas-power-grids-and-your-
home-appliances/
13
Health and Safety Impacts: Data Centers
xix https://www.datacenterdynamics.com/en/news/ai-data-centers-causing-distortions-in-us-power-grid-
bloomberg/
xx https://www.reuters.com/technology/big-techs-data-center-boom-poses-new-risk-us-grid-operators-2025-03-
19/
xxi https://amp.cnn.com/cnn/2025/05/19/climate/xai-musk-memphis-turbines-pollution
xxii https://www.microgridknowledge.com/distributed-energy/article/11427459/why-do-data-center-operators-
choose-diesel-backup-over-cleaner-microgrids
xxiii https://ecology.wa.gov/air-climate/air-quality/data-
centers#:~:text=Air%20pollution%20from%20data%20centers,can%20be%20built%20or%20expanded.
xxiv
https://www.eia.gov/todayinenergy/detail.php?id=63304#:~:text=Although%20historically%20costly%20to%2
0build,us%20about%20data%20center%20demand?
xxv https://www.youtube.com/watch?v=58zHJL1dKtw
xxvi Going Nuclear: Virginia’s Answer to the Intensive Energy Needs of Artificial Intelligence Data Center,
Georgetown Environmental Law Review Online, February 27, 2025, Sarah Bosworth.
xxvii https://www.bloomberg.com/graphics/2025-ai-impacts-data-centers-water-data/; see also
https://www.sciencedirect.com/science/article/abs/pii/S0921344922000428?fr=RR-
2&ref=pdf_download&rr=94fff2af6fb1341c (describing the “trade-off between water and energy consumption” in
data center design, by analyzing two Phoenix data centers served by SRP and identifying unique challenges
presented by our “hot-dry climate.”
xxviii https://www.iaff.org/news/data-centers-are-booming-and-fire-fighters-must-adapt-to-new-challenges/
xxix https://www.datacenterknowledge.com/sustainability/why-data-centers-are-loud-and-how-to-quiet-them-
down
xxx https://www.sensear.com/blog/data-centers-arent-loud-right
xxxi https://www.techtarget.com/searchdatacenter/tip/Understanding-the-impact-of-data-center-noise-pollution
Fire Department References:
•
Data-Driven Fire Operations - Firefighting - Fire Engineering
•
Lithium-Ion Batteries, Fire Investigations, and Keeping Pace with Emerging Technologies -
BESS
•
The Impact of Solar Energy on Firefighting
•
FPRF_FireFitherSafety.pdf
•
EVTrainingEmergencyResponders.pdf
Attachment A: Letter from APS dated June 25, 2025
Attachment B: Letter from SRP dated June 26, 2025
14
Health and Safety Impacts: Data Centers
Attachment A: June 25, 205 letter from APS
15
Health and Safety Impacts: Data Centers
Attachment B: June 26, 205 letter from SRP
1
Ordinance G-
EXHIBIT B
THIS IS A DRAFT COPY ONLY AND IS NOT AN OFFICIAL COPY OF THE FINAL,
ADOPTED ORDINANCE
ORDINANCE G-
AN ORDINANCE AMENDING PORTIONS OF THE CODE OF THE CITY OF PHOENIX,
ARIZONA, PART II, CHAPTER 41, THE ZONING ORDINANCE OF THE CITY OF
PHOENIX BY AMENDING CHAPTER 2, SECTION 202 (DEFINITIONS) TO ADD A
DEFINITION FOR DATA CENTERS; AMENDING CHAPTER 5, SECTION 507 TAB
A.II.D (GUIDELINES FOR DESIGN REVIEW, CITY-WIDE DESIGN REVIEW
GUIDELINES, SPECIALIZED USES) TO MODIFY THE SECTION TITLE AND ADD
DESIGN STANDARDS FOR DATA CENTERS; AND AMENDING CHAPTER 6,
SECTION 647 (SPECIAL PERMIT USES), SECTION 647.A.2 TO ADD DATA
CENTERS WITHIN THE C-2 (INTERMEDIATE COMMERCIAL), C-3 (GENERAL
COMMERCIAL), CP/GCP (COMMERCE PARK/GENERAL COMMERCE PARK), A-1
(LIGHT INDUSTRIAL), AND A-2 (INDUSTRIAL) ZONING DISTRICTS, WITH A
SPECIAL PERMIT AND PERFORMANCE STANDARDS.
WHEREAS, the City of Phoenix (the “City”) is in the top 10 of fastest growing cities in the
country, adding over 16,000 residents between July 1, 2023, and July 1, 2024; and
WHEREAS, while managing this population growth, the City is seeing ever-increasing
interest in data centers; and
WHEREAS, today’s data centers are typically very large and intense uses, with some
data centers being more than 90 acres in size and often require a new electrical
substation or other significant new infrastructure; and
WHEREAS, the activities carried out within today’s data centers have also shifted greatly
in the last few years; and AI data centers are fundamentally different land uses when
compared to an office or the outdated concept of a “telecom hotel.” Today’s data centers,
and AI data centers in particular, feature unique equipment and energy use patterns that
create unique threats to public health and safety beyond the borders of their properties;
and
WHEREAS, the proliferation of data centers within certain areas of the City may result in
adverse impacts on local neighborhoods and other existing uses; and
WHEREAS, there is convincing documented evidence that data centers pose risks to
public health, and safety, including, but not limited to, potential negative impacts to the
availability and reliability of power for neighboring properties because of significant, and
2
Ordinance G-
sometimes erratic, data center power consumption, potential air quality degradation and
adverse noise impacts from onsite power generation, increased fire danger and response
challenges, and potential adverse effects from typical operational noise, all of which
extend beyond the boundaries of a data center property; and
WHEREAS, because of the potential public health and safety impacts, land use
considerations for data centers require individualized analysis; and
WHEREAS, the City Council desires to avoid outright bans on data centers in most zoning
districts and prefers to utilize the special permit process to ensure data centers comply
with reasonable land use standards designed to address public health and safety
concerns and to minimize negative secondary effects to the neighborhoods, businesses
and residents around data centers, while still providing for opportunities for data centers
at various locations within the City; and
WHEREAS, when evaluating the negative secondary effects of data centers, the City is
permitted to consider the impacts on health and safety that have been experienced in
other urban areas; and
WHEREAS, the City has compiled substantial data from other urban areas relating to
negative secondary effects of data centers on surrounding neighborhoods, along with the
findings and research previously conducted by its staff and consultants, in a report entitled
“Health and Safety Impacts: Data Centers 2025” (the “Health and Safety Report”), which
has been provided to and reviewed by the City Council, and is the primary impetus for its
adoption of this ordinance; and
WHEREAS, the City Council has determined this ordinance is necessary to address the
health and safety challenges associated with data centers, including (i) risks to the public
health and safety in the communities in which they are located, (ii) unique firefighting
challenges, (iii) adverse environmental impacts to air, land, and water, (iv) extensive
water usage, (v) noise pollution, (vi) significant energy demand, (vii) land use challenges,
including a loss of land for jobs and housing, inactive frontages along public streets, and
(viii) conflicts with the City’s approach of maximizing transportation investments with
walkable communities.
NOW THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
PHOENIX, as follows:
SECTION 1: Purpose.
It is the purpose of this ordinance to (i) provide a process to review, monitor, and regulate
data centers to ensure that the negative secondary effects of data centers do not
adversely impact the health and safety of the residents of the City, and (ii) establish
reasonable and uniform regulations to prevent and mitigate such adverse impacts
(existing and potential) to residents, neighborhoods, and the City as a whole. This
3
Ordinance G-
ordinance is not intended to ban data centers in most zoning districts, nor is it intended
to discourage location of data centers in the City of Phoenix.
The special permit regulatory framework employs a holistic approach to data center
development and provides opportunities for City staff to evaluate the health and safety
needs of the community and to ensure that the health and safety consequences
associated with the location, design, site and operational features are taken into
consideration. In addition to the traditional site-related considerations, the City has
determined it is necessary to require evidence of agreements with electric utility providers
to ensure the local community will not be negatively impacted or imperiled by demands
on the power infrastructure created by the data center, or by on-site power generating
facilities that are incompatible with the health and safety of the existing residents. The
special permit provides an opportunity for landowners, data center developers, City staff,
neighbors and the Phoenix City Council to collaborate and ensure that new investments
in data centers are strategically located in appropriate areas of the City and serve the
best interests of the City, the neighbors, and the data center developer.
SECTION 2: Findings.
Studies, news articles, research articles, industry publications, relevant data, input from
experts and consultants, and the review of the operations and impact of data center sites
in other locations including, but not limited to, Phoenix, Mesa, Los Angeles, Memphis,
Houston, Lincoln, Nebraska, Boston, Ogden, Utah, Seattle, Virginia, and overseas
locations including South Korea, Belgium, Indonesia, Strasbourg, Milan, Belfast, and
Madrid were gathered and reviewed. The results have been summarized, with links to
the source data, in the Health and Safety Report. Upon review of the Health and Safety
Report, and the source materials as deemed necessary, the City Council make the
following findings:
1. Increase in Size, Scale, Number and Power Usage. Phoenix is a desirable location
for data centers due to its favorable climate. Within the last decade, data centers have
increased dramatically in scale, becoming intense users of land and local resources.
This change in the scale and intense use of electrical power has necessitated a new
definition of “data center” to differentiate it from uses that can no longer be considered
analogous and has created the need for new zoning standards that account for the
impacts data centers have on surrounding properties. Related to their intense
operations, recent incidents across the United States and the world have highlighted
the health and safety challenges data centers pose to residents including, but not
limited to, strains on energy and water resources, threats to the electrical grids existing
users rely upon, increased emissions created by heavy energy consumption, noise,
heat, and on-site generating facilities and strain on public safety resources. In addition,
data centers pose unique risks to first responders due to their size, sensitivity, and
high concentration of batteries and electrical equipment.
a) Significant Power consumption. Arizona Public Service (“APS”) and Salt River
Project (“SRP”) anticipate that more than 90% of the energy demand in the
4
Ordinance G-
industrial sector of their service areas is related to data center development. The
projected growth in data centers represents an unprecedented surge in demand
for electricity. The Department of Energy has predicted that data center electricity
use will double or triple by 2028. The special permit process, and in particular the
requirement for the City Council to fully understand how power will be provided to
meet the data center needs, is designed to ensure that the data center is proposed
for a location with appropriate infrastructure, that an appropriate plan has been
developed to construct that infrastructure, and that gap-bridging on-site
infrastructure will not endanger existing nearby users.
b) Potential to Destabilize Local Power Grid. As Phoenix and the region continue to
grow, ensuring that there are sufficient energy resources to support a reliable
electrical grid, especially during the hot summer months, is one of the greatest
challenges facing utility companies and municipalities. The risk to Phoenix is
highlighted by research done by the North American Electric Reliability Corporation
(“NERC”), the federal regulator for grid reliability. The NERC founded a taskforce
to study electrical grid disruptions caused by data centers and crypto miners. The
NERC released a report in December of 2024 that found that the risk of power
outages will only grow as new data centers come online. Nearly all the United
States will face higher risks of energy shortfalls over the next 5 to 10 years,
according to the report. Understanding a data center’s power usage, needs, and
plans for providing that power, is an essential part of the special permit process,
which is necessary to ensure that the introduction of a data center to an area does
not imperil critical power reliability for nearby residents and businesses.
The data center threat to grid stability and to existing power users is not simply a
matter of total demand. In addition to their unparalleled energy appetite, data
centers further stress the grid with inconsistent flow patterns and short bursts of
high usage. These consequences are especially pronounced with data centers that
support AI, which produce unpredictable energy spikes. These spikes can lead to
immediate grid failures, but they can also cause “bad harmonics” that degrade the
lifespan of connected electrical equipment including home appliances, can lead to
sparks and home fires, and can eventually lead to grid blackouts as effects
compound and escalate. These effects have been observed in many places,
including Loudoun County, Virginia, where bad harmonic readings have been
reported to reach four times the average rate. These are direct negative impacts
on existing users of all types, so expectations of large-scale intermittent power use
should be addressed on the front end to mitigate major consequences on public
health and safety.
c) Onsite Power Generation. SRP and APS are anticipating unprecedented
additional demand for power related to data centers. APS expects its peak load
to jump 40% by 2031. APS officials have recently explained that the utility has
more pending interconnection requests from data centers than it can fulfill without
putting existing customers at risk of having poor reliability, and recent proceedings
before the Arizona Corporation Commission have revealed support for developing
5
Ordinance G-
“behind the meter solutions” for data center power. The lack of power from the
electrical grid will place additional pressure on data centers to produce their power
on-site. During the 2025 legislative session, the Arizona legislature approved HB
2774 (vetoed by the Governor but supported by the State’s three largest utilities),
which incentivized small nuclear reactors that collocate with large industrial users
by eliminating the requirements for collocated reactors to receive environmental
compatibility certificates. As detailed in the Health and Safety Report, in Memphis,
Tennessee, a large data center utilized 35 gas-powered generators for on-site
power generation in response to a lack of available power from the local power
company. HB 2774 and the examples from other jurisdictions highlight the need
for the City Council to ensure that the methods of power generation are closely
evaluated (through the special permit process) to ensure the health and safety of
neighboring residents and businesses are not adversely impacted.
2. Limited available land employment generators; health care; and grocery stores. Of the
land zoned commercial, commerce park and industrially zoned, only 3% of it is vacant
and ready for development such as employment, health care, grocery stores or
services. Phoenix has increasing needs for a diversity of jobs, health related services
and access to healthy food. Continued unfettered build-out of data centers within the
City hinder the private sector market’s ability to provide these resources to Phoenix
residents Phoenix has Health Professional Shortage Areas (“HPSA”), which are
geographic areas that have a substantial shortage of primary, dental, or mental health
care providers and food deserts. In Phoenix’s Laveen Village there are 12 HPSA
areas and in the South Mountain Village there are 24 HPSA areas.
There are food deserts in Phoenix. The City of Phoenix has adopted a 2025 Food
Action Plan which analyzes the challenges residents face in achieving a healthy and
robust food system. Data centers contribute to the decreasing amount of land area
available to provide the necessary health services to residents, including grocery
stores. Preserving and opportunities for access to healthy food, especially in areas
that have been identified as food deserts, is critical in protecting the health of Phoenix
residents. The special permit process allows the City Council to evaluate the impact
of a proposed data center on health services for an area.
3. Water usage. While Data center water usage has improved in recent years due to
changes in the cooling methodology used, these technologies tend to require larger
amounts of power and recent studies point to the industry continuing to need larger
amounts of water. Additionally, for desert cities and water providers like Phoenix, the
ability to properly evaluate and regulate data center water usage is paramount for the
City’s survival.
4. Fire Safety. Data centers represent a new and challenging service area for
firefighters. According to the International Association of Fire Fighters the growing
presence of data centers requires specialized training, considerable planning, and
close cooperation with on-site security and engineering teams at these new sites. As
detailed in the Public Safety Report, data centers have components that are typically
6
Ordinance G-
not present at the same scale and intensity in other occupancies of a similar size. The
proposed special permit process for data centers will provide an opportunity for the
Phoenix Fire Department to provide critical insight into the proposed location, design
and operation of future data centers. That review will include an assessment of
existing resources available to serve the proposed data center location. Fire resources
are not evenly distributed throughout the City, and in some cases the City may need
to invest in new infrastructure, equipment, or resources to ensure its ability to serve
new data center developments, or to serve new data center developments without
leaving existing residents and businesses unprotected. This analysis will be especially
important when large data centers replace farmland or other much lower intensity
uses.
Fire Department review will also ensure compliance with the Phoenix Fire Code and
industry best practices, and will allow the Fire Department to learn about and prepare
for the specific energy generation and storage equipment that will be present on-site.
Energy storage technologies continue to rapidly evolve, and that makes this level of
review critical to ensure that fire crews have equipment or techniques required based
on the design and chemistry of such equipment. Without advance knowledge, the
chance of a fire sparked by large batteries or other electrical equipment spreading
beyond a data center’s walls to harm those on nearby property will be greatly
increased.
5. Noise. Noise around areas of data centers can reach up to 92 dB(A) for sites with
greater densities of equipment, and up to 96 dB(A) inside. The National Institute for
Occupational Safety and Health (NIOSH) threshold for requiring hearing protection is
85 dB(A) over an eight-hour period. These constant humming and buzzing noises
may have adverse health impacts in nearby neighborhoods including headache,
stress, and sleep disturbance. Poor quality sleep and stress can also contribute to
cognitive impairment and cardiovascular risks. The special permit process will allow
the City to evaluate potential noise impacts to the surrounding areas to ensure that
neighboring residents and businesses are not negatively impacted by unreasonable
noise from the introduction of a data center to the area.
6. Holistic Review of Health and Safety. In addition to the key concerns enumerated
here, other jurisdictions have experienced other health and safety challenges
including heat, noise, air, and stormwater pollution. Furthermore, as the quantity,
value, and sensitivity of the data stored in today’s data centers continues to increase,
these facilities become increasingly sensitive and generate security issues that can
affect nearby users and the sufficiency of public safety resources. Given the rapid
pace of evolution in data center size, equipment, power usage, and activities, a holistic
review of new data center projects is required to ensure that they are located and
designed with consideration for the many well-documented, and therefore predictable,
consequences to the health and safety of existing residents and land users.
SECTION 3: The Code of the City of Phoenix, Chapter 2, Section 202 (Definitions)
to hereby amended to add a definition for “Data Centers” to read as follows:
7
Ordinance G-
***
Section 202. Definitions.
***
DATA CENTER: A FACILITY USED PRIMARILY FOR DATA SERVICES, INCLUDING
THE STORAGE, PROCESSING, MANAGEMENT, AND TRANSMISSION OF DIGITAL
DATA. A FACILITY SHALL NOT BE CONSIDERED A DATA CENTER WHEN IT DOES
NOT EXCEED 10% OF THE GROSS FLOOR AREA OF ALL ON-SITE BUILDINGS; IS
USED TO SERVE THE ENTERPRISE FUNCTIONS OF THE ON-SITE PROPERTY
OWNER; AND IS NOT USED TO LEASE DATA SERVICES TO THIRD PARTIES.
***
SECTION 4: The Code of the City of Phoenix, Chapter 5, Section 507, Tab A.II.D
(Guidelines for Design Review, City-Wide Design Review Guidelines, Specialized Uses), is
hereby amended to modify the section title and add design standards for data centers, and
to read as follows:
Section 507 Tab A. Guidelines for design review.
***
II.
CITY-WIDE DESIGN REVIEW GUIDELINES. The design review guidelines indicate
specific standards of implementation and are categorized as Requirements (R),
Presumptions (P), or Considerations (C). INDICATED WITH THE MARKERS (R),
(R*), (P), (T), AND (C) SHALL BE APPLIED AND ENFORCED IN THE SAME
MANNER AS INDICATED IN SECTION 507. ITEMS NOT INDICATED WITH AN
(R), (R*), (P), (T), AND (C) SHALL BE TREATED AS (R).
***
D.
Specialized Uses.
***
5.
DATA CENTERS.
8
Ordinance G-
5.1.
SETBACKS. ALL MECHANICAL EQUIPMENT, INCLUDING
BUT NOT LIMITED TO ELECTRICAL TRANSFORMERS
AND GENERATORS, SHALL BE SET BACK A MINIMUM OF
150
FEET
FROM
ABUTTING
RIGHT-OF-WAY
OR
RESIDENTIALLY ZONED PROPERTY; IN ADDITION TO
THE FOLLOWING: (R*)
5.1.1. THE EQUIPMENT MUST BE FULLY SCREENED BY
A BUILDING THAT IS VISUALLY INTEGRATED WITH
THE DESIGN OF THE OVERALL DEVELOPMENT;
OR
5.1.2 THE EQUIPMENT MUST BE FULLY SCREENED BY
A
DECORATIVE
SCREEN
WALL
HAVING
VARIATIONS IN COLORS, MATERIALS, PATTERNS,
TEXTURES, AND/OR AN ART INSTALLATION SUCH
AS A MURAL.
RATIONALE:
GROUND
EQUIPMENT
SHOULD
BE
ENCLOSED AND SET BACK TO PROVIDE VISUAL
SCREENING AND REDUCE NOISE LEVELS.
5.2.
LANDSCAPE SETBACK. A MINIMUM 30-FOOT WIDE
PERIMETER
LANDSCAPE
SETBACK
SHALL
BE
PROVIDED, SUBJECT TO THE FOLLOWING:
5.2.1. TWO STAGGERED ROWS OF LARGE CANOPY
SHADE TREES PLANTED 20 FEET ON CENTER OR
IN EQUIVALENT GROUPING SHALL BE PROVIDED,
AS
APPROVED
BY
THE
PDD
LANDSCAPE
ARCHITECT. (T)
5.2.2 FIVE 5-GALLON SHRUBS PER TREE SHALL BE
PROVIDED, AT A MINIMUM. (T)
5.2.3 GROUNDCOVERS
SHALL
BE
PROVIDED
TO
SUPPLEMENT THE TREES AND SHRUBS SO THAT
A MINIMUM 75% LIVE COVERAGE IS ATTAINED. (T)
RATIONALE: AN ENHANCED LANDSCAPE SETBACK
WITH A DENSE NUMBER OF TREES AND SHRUBS HELPS
TO MITIGATE NEGATIVE VISUAL IMPACTS.
9
Ordinance G-
5.3.
ARCHITECTURE.
5.3.1. BUILDING FACADES THAT EXCEED 100 FEET
SHOULD
CONTAIN
ARCHITECTURAL
EMBELLISHMENTS AND DETAILING SUCH AS
TEXTURAL CHANGES, PILASTERS, OFFSETS,
RECESSES,
WINDOW
FENESTRATION
(INCLUDING FAUX WINDOWS), SHADOW BOXES,
AND OVERHEAD/CANOPIES. (P)
5.3.2. ALL SIDES OF A BUILDING/STRUCTURE SHOULD
PROVIDE AN ENHANCED DESIGN INCLUDING A
VARIATION IN COLORS, MATERIALS, PATTERNS,
TEXTURES, HEIGHT, WINDOWS (INCLUDING FAUX
WINDOWS),
ARTICULATION,
AND/OR
ART
INSTALLATIONS. (P)
5.3.3. EACH MAIN ENTRANCE SHOULD INCLUDE A
FEATURE THAT DIFFERENTIATES IT FROM THE
REMAINDER OF THE BUILDING FACADE BY A
CHANGE IN BUILDING MATERIAL, PATTERN,
TEXTURE, COLOR, AND/OR ACCENT MATERIAL,
AND THAT PROJECTS OR IS RECESSED FROM
THE ADJOINING BUILDING PLANE. (P)
5.3.4. ARCHITECTURAL DESIGN SHOULD TAKE INTO
ACCOUNT THE SOLAR CONSEQUENCES OF
BUILDING HEIGHT, BULK, AND AREA. (C)
RATIONALE:
DATA
CENTER
BUILDINGS
SHOULD
INCLUDE
ENHANCED
ARCHITECTURAL
DESIGN
FEATURES IN ORDER TO PROVIDE VISUAL INTEREST,
TO BREAK UP THE MASS OF THE BUILDING/STRUCTURE
AND TO PROVIDE AN ENHANCED DESIGN INTERFACE
WHERE VISIBLE FROM A RIGHT-OF-WAY AND/OR
RESIDENTIALLY ZONED PROPERTY.
5.4.
STREETSCAPE. FOR EACH STREET FRONTAGE, A
MINIMUM
6-FOOT-WIDE
DETACHED
SIDEWALK
SEPARATED FROM THE CURB BY A MINIMUM 8-FOOT-
WIDE
LANDSCAPE
STRIP,
SUBJECT
TO
THE
FOLLOWING:
10
Ordinance G-
5.4.1. SINGLE-TRUNK, LARGE CANOPY SHADE TREES,
PLANTED
20
FEET
ON
CENTER
OR
IN
EQUIVALENT GROUPINGS, SHALL BE PROVIDED
ON BOTH SIDES OF THE SIDEWALK AND PROVIDE
A MINIMUM OF 75% SHADE. (T)
5.4.2 A
MIXTURE
OF
SHRUBS,
ACCENTS,
AND
VEGETATIVE GROUNDCOVERS WITH A MAXIMUM
MATURE HEIGHT OF TWO FEET SHALL BE
DISTRIBUTED THROUGHOUT THE LANDSCAPE
AREAS TO ACHIEVE A MINIMUM OF 75% LIVE
COVERAGE. (T)
5.4.3 ALL NEW OR RELOCATED ELECTRIC LINES 12 KV
AND SMALLER, COMMUNICATIONS AND CABLE
TELEVISION AND ALL ON PREMISE WIRING SHALL
BE
PLACED
UNDERGROUND
IN
ALL
DEVELOPMENTS WHERE VISIBLE FROM STREETS
OR
ADJOINING
PROPERTIES,
UNLESS
OTHERWISE APPROVED THROUGH A TECHNICAL
APPEAL. (T)
RATIONALE: AN ENHANCED STREETSCAPE HELPS TO
SOFTEN THE EDGE OF THE DEVELOPMENT OF A
LARGER NON-RESIDENTIAL USE.
5.5.
SHADE.
5.5.1. ALL ON-SITE PEDESTRIAN PATHWAYS SHOULD
BE SHADED A MINIMUM OF 75% BY A STRUCTURE,
LANDSCAPING, OR A COMBINATION OF THE
TWO. (P)
5.5.2 DEDICATED MULTI-USE TRAILS ADJACENT TO
THE SITE SHOULD BE SHADED A MINIMUM OF 50%
AT TREE MATURITY. (P)
RATIONALE:
ENHANCED
PEDESTRIAN
COMFORT
SHOULD BE PRIORITIZED ADJACENT TO AND WITHIN
DATA CENTER DEVELOPMENTS ACROSS THE CITY.
***
11
Ordinance G-
SECTION 5: The Code of the City of Phoenix, Chapter 6, Section 647 (Special
Permit Uses), Section 647.A.2 is hereby amended to add data centers within the C-2
(Intermediate Commercial), C-3 (General Commercial), CP/GCP (Commerce Park/General
Commerce Park), A-1 (Light Industrial) and A-2 (Industrial) zoning districts, with
performance standards to read as follows:
Section 647. Special Permit Uses.
***
A.
Permitted uses. There shall be permitted, in addition to the uses enumerated in the
several use districts, certain additional uses subject to the requirements of this
section.
***
2.
A special permit may be granted by the Council upon recommendation of the
Commission to establish the following uses in the use districts named:
***
KK.
DATA CENTERS IN THE C-2, C-3, CP/GCP, A-1 AND A-2 ZONING
DISTRICTS, SUBJECT TO THE FOLLOWING:
(1)
THE DEVELOPMENT SHALL BE NO CLOSER THAN 2,640
FEET FROM AN APPROVED HIGH-CAPACITY TRANSIT
STATION.
(2)
PRELIMINARY SITE PLAN APPROVAL WILL NOT BE
GRANTED FOR A DATA CENTER UNTIL SUCH TIME THAT
A
LOCAL
UTILITY
COMPANY
PROVIDES
A
CONTRACTUAL
AGREEMENT
THAT
AFFIRMS
ITS
CAPACITY AND COMMITMENT TO SERVE THE ENERGY
DEMAND FOR THE PROPOSED DATA CENTER. THE
AGREEMENT FROM THE UTILITY COMPANY SHALL BE
SUBMITTED
TO
PDD
CONCURRENT
WITH
THE
PRELIMINARY SITE PLAN.
(3)
THE FOLLOWING SHALL APPLY WHEN THE SITE IS
LOCATED WITHIN 300 FEET OF A RESIDENTIAL ZONING
DISTRICT:
12
Ordinance G-
(a)
PRELIMINARY SITE PLAN APPROVAL FOR A DATA
CENTER SHALL NOT BE GRANTED UNLESS IT HAS
BEEN DEMONSTRATED THAT THE DATA CENTER,
INCLUDING
ALL
ON-SITE
MECHANICAL
EQUIPMENT AND FACILITIES, WILL NOT EXCEED
THE EXISTING AMBIENT NOISE LEVEL FOR THE
SITE BY MORE THAN 5% OR A SPECIFIC NOISE
STANDARD MAY BE STIPULATED AS A CONDITION
OF AN APPROVED SPECIAL PERMIT.
(b)
TO DETERMINE COMPLIANCE WITH THE PRIOR
SUBSECTION, THE DEVELOPER SHALL SUBMIT A
NOISE
STUDY
TO
PDD
PRIOR
TO
OR
CONCURRENT WITH THE PRELIMINARY SITE
PLAN. THE NOISE STUDY SHALL BE PERFORMED
BY A THIRD-PARTY ACOUSTICAL ENGINEER TO
DOCUMENT BASELINE NOISE LEVELS IN THE
AREA OF THE PROPOSED DATA CENTER,
INCLUDING NOISE LEVELS MEASURED AT THE
PROPERTY LINE OF THE NEAREST RESIDENTIAL
ZONING DISTRICT TO THE PROPOSED DATA
CENTER PROPERTY.
(c)
UPON APPROVAL OF THE NOISE STUDY, THE
METHODS PROPOSED TO MITIGATE NOISE SHALL
BE STIPULATED AS A CONDITION OF FINAL SITE
PLAN APPROVAL. A FINAL CERTIFICATE OF
OCCUPANCY SHALL NOT BE ISSUED IF THE
AMBIENT NOISE EXCEEDS THE PRIOR EXISTING
NOISE LEVEL BY MORE THAN 5%.
13
Ordinance G-
(4)
THESE REGULATIONS AND THE DESIGN GUIDELINES
SET FORTH IN SECTION 507 TAB A.II.D.5., DATA
CENTERS ARE NOT APPLICABLE TO DATA CENTERS
WHICH HAVE RECEIVED FINAL SITE PLAN APPROVAL;
OR A DATA CENTER USE THAT IS SPECIFICALLY LISTED
AS A PERMITTED USE OR SPECIFICALLY DISCUSSED IN
A COUNCIL ADOPTED PLANNED UNIT DEVELOPMENT
NARRATIVE PRIOR TO [THE EFFECTIVE DATE OF THIS
ORDINANCE]. OTHERWISE, THE DEVELOPMENT IS
SUBJECT
TO
THESE
REGULATIONS
AND
ALL
APPLICABLE DESIGN GUIDELINES SET FORTH IN
SECTION 507 TAB A, INCLUDING THOSE FOR SECTION
II.D.5, DATA CENTERS.
***
PASSED by the Council of the City of Phoenix this 2nd day of July, 2025.
________________________________
MAYOR
ATTEST:
____________________________City Clerk
APPROVED AS TO FORM:
____________________________City Attorney
REVIEWED BY:
____________________________City Manager