Flagstaff Planning and Zoning Commission recommends ban on commercial data centers, sends measure to City Council

The Flagstaff Planning and Zoning Commission voted to recommend Proposal 2, a zoning code text amendment that would effectively bar new commercial data centers within city limits, sending the item to the Flagstaff City Council after a 4-3 recorded vote.

Staff had recommended a regulatory approach (Proposal 1) that would allow data centers only under a conditional use permit with mitigation measures. In explaining that recommendation, staff warned of legal risk: developers who already own land might challenge restrictive local standards under Arizona Proposition 207 and could seek compensation if a court found the municipal restrictions impaired property value. Staff said the proposed CUP framework aimed to balance local mitigation while avoiding preemption and to provide a model other jurisdictions could adopt.

The commission—debate centered on resource use, public-safety review, enforceable standards and legal exposure. Commissioners questioned whether a CUP…