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Council presses staff to study code changes after developer signals interest in PH‑5 data center

Phoenix City Council · July 7, 2026
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Summary

Councilors raised alarms after a developer reportedly sought to site a data center in PH‑5; members asked the city manager and city attorney to explore legislative or land‑use code options, including a possible prohibition, and to brief council on next steps.

Councilors on July 6 said a developer had privately expressed interest in siting a data center in PH‑5 and near the helicopter‑pad parcel, and they directed the city manager and city attorney to research legal and code options to regulate or prohibit such facilities.

The Chair (speaker 1) described a conversation in which an individual asked whether the city would welcome a data center and said the developer claimed substantial funding for the project. The Chair said the developer had suggested funding “between $50 and $100 million” and asked the council to be proactive rather than reactive.

Multiple councilors said they did not want the city to be unprepared if a large data‑center proposal appears. One councilor asked planning staff to begin a code review to limit building heights and uses in certain districts; another urged exploring a formal ordinance that would explicitly restrict data centers in residential‑adjacent zones. The city attorney and city manager were asked to report back with options, including legislative language and land‑use code amendments.

Council members framed their concerns around local impacts: water and electrical demand, generator noise and air emissions from backup power, and the potential difficulty of reversing approvals once infrastructure is in place. The Chair said he had asked the city manager to “move ahead” on reviewing options and to bring recommendations to council for consideration.

No formal ban was adopted; the council’s action was to request staff analysis and potential draft legislation or code changes to present at a later meeting.