Attachment B - Staff Report - Z-TA-2-25-Y.pdf

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Staff Report 
Zoning Ordinance Text Amendment 
Z-TA-2-25-Y
May 1, 2025
Application No. Z-TA-2-25-Y: Amend the Phoenix Zoning Ordinance Chapter 2, 
Section 202 (Definitions) to add a definition for data centers; amend 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 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 
Staff recommendation: Staff recommends approval of Z-TA-2-25-Y as shown in the 
proposed text in Exhibit A. 
BACKGROUND 
In 2024, the Mayor and City Council directed City staff to create new policy guidance 
and zoning regulations related to data centers, in response to the increased frequency 
and development of these types of facilities. Data centers house a large collection of 
technological equipment designed to store, process, and manage vast amounts of 
digital information. One major concern with data centers is that their energy demand is 
expected to increase significantly, in large part due to Artificial Intelligence. Another 
major concern is the scale at which these types of facilities are built and how they can 
negatively affect the surrounding community they are built in. The companion general 
plan amendment, GPA-2-25-Y is a request to amend the 2025 General Plan to add a 
section to provide policy guidance for data centers addressing the major concerns they 
pose to the community and to the city.  
Staff researched other cities in the nation that have adopted ordinances related to data 
centers for best practices and looked at ways Phoenix could enhance those ordinances. 
ATTACHMENT B

Staff Report: Z-TA-2-25-Y 
 
May 1, 2025 
Page 2 
 
PURPOSE 
The intent of the proposed text amendment is to create a regulatory framework for data 
centers. Data centers are not defined nor are they explicitly listed as a permitted use in 
the Phoenix Zoning Ordinance; therefore were addressed via informal interpretation. 
This text amendment will create a new definition for “data center”; create design 
guidelines such as setback requirements and screening design standards for equipment 
enclosures and accessory public utility buildings and facilities, such as electrical 
substations; and create enhanced landscaping, architectural, and streetscape standards 
to soften the design of data centers so they can better blend into the surrounding 
environment they are built in; and develop location criteria and performance standards 
for data centers. This includes spacing from high-capacity transit; noise standards to 
reduce the impact of data centers when located within a certain distance from 
residential; and allow data centers only the following zoning districts: C-2, C-3, CP/GCP, 
A-1 and A-2 with a Special Permit.   
 
DESCRIPTION OF THE PROPOSED TEXT  
The proposed text amendment includes three main components: Definitions, Data 
Center-Specific Design Guidelines, and special permit requirements and performance 
standards: 
 
1. Definitions: 
The Zoning Ordinance currently does not have a definition for the term “data center”. 
The proposed definition states generally what a data center is and when it may be 
considered as an accessory use to a non-residential use, if it occupies no more than 
10 percent of the building footprint, is used to serve the enterprise functions of the 
on-site property owner, is not used to lease data storage and processing services to 
third parties and is not housed in a separate stand-alone structure on the site. 
 
2. Data Center-Specific Design Guidelines:  
The proposed regulations for data centers were based and built upon established 
practices in other municipalities. Equipment enclosures would need to be setback a 
minimum of 150 feet from abutting rights-of-way and residentially zoned properties, 
and screened by a decorative solid wall or building. Mechanical equipment, such as 
an electrical substation, would also need to meet similar setbacks and decorative 
screening requirements. Since data centers are very large in scale, enhanced 
streetscape, landscape setback and planting standards will help to soften the edges 
of data center sites and will beautify the edges of the site that interacts with the 
surrounding community. Enhanced architectural design guidelines, such as variation 
in colors, materials, patterns, textures, height, window fenestration, and articulation, 
and standards for art in private development, will help to avoid large, monotonous, 
undifferentiated surfaces and avoid large, monolithic buildings, and instead will 
provide an enhanced design interface with a visual interest for the surrounding 
community.

Staff Report: Z-TA-2-25-Y 
 
May 1, 2025 
Page 3 
 
3. Special Permit Requirements and Performance Standards: 
The Zoning Ordinance currently does not have development regulations for data 
centers. The proposed text amendment would allow data centers in the C-2, C-3, 
CP/GCP, A-1 and A-2 zoning districts with a Special Permit.  The performance 
standards for data centers include a half a mile spacing from approved high-capacity 
transit, noise study and noise mitigation requirements for data centers located within 
300 feet of a residential zoned district and a will-server letter from the utility company 
that it can serve the energy demand within two years.   
 
Conclusion: 
This text amendment will create a process for data centers to be proposed and 
evaluated through a public hearing process. The text amendment will provide standards 
to address major concerns that data centers cause. By adding a definition for the term 
“data center”, clarifying the districts in which they are permitted, and adding standards 
for data centers to follow, Phoenix will be leading in ensuring that data centers blend 
with the surrounding environment while limiting negative impacts to existing 
communities.  
 
Staff recommends approval of the changes to the Zoning Ordinance as proposed in Exhibit 
A. 
 
 
Writer 
Adrian Zambrano 
May 1, 2025 
 
Team Leader 
Racelle Escolar 
 
Exhibit 
A. Proposed Language

Staff Report: Z-TA-2-25-Y 
 
May 1, 2025 
Page 4 
 
Exhibit A 
 
Staff Proposed Language That May Be Modified During the Public Hearing Process is 
as follows: 
Section 202.  Definitions. 
Amend Chapter 2, Section 202 (Definitions) to add a definition for data centers. 
 
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. 
*** 
 
Amend 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 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.

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May 1, 2025 
Page 5 
 
 
 
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: 
 
 
 
 
 
 
5.4.1. 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) 
 
 
 
 
 
 
5.4.2 FIVE 5-GALLON SHRUBS PER TREE SHALL BE 
PROVIDED, AT A MINIMUM. (T) 
 
 
 
 
 
 
5.4.3 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. 
 
 
 
 
 
 
5.3. ARCHITECTURE.

Staff Report: Z-TA-2-25-Y 
 
May 1, 2025 
Page 6 
 
 
 
 
 
 
 
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:

Staff Report: Z-TA-2-25-Y 
 
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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 EXISTING OVERHEAD UTILITIES WITHIN THE 
RIGHTS-OF-WAY ABUTTING THE DEVELOPMENT 
SHALL BE PLACED UNDERGROUND, 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. 
 
***

Staff Report: Z-TA-2-25-Y 
 
May 1, 2025 
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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 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 CONFIRMS IN 
WRITING WITH A “WILL-SERVE” LETTER THAT IT CAN 
SERVE THE ENERGY DEMAND WITHIN TWO YEARS 
FOR THE PROPOSED DATA CENTER.  THE LETTER 
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:

Staff Report: Z-TA-2-25-Y 
 
May 1, 2025 
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(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%. (T) 
 
 
(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%. 
 
 
(4) 
THE DEVELOPMENT IS SUBJECT TO ALL APPLICABLE 
DESIGN GUIDELINES SET FORTH IN SECTION 507 TAB 
A, INCLUDING THOSE FOR SECTION II.D.5, DATA 
CENTERS. 
 
***