Council approves development agreement with Compass Data Centers despite water concerns

The El Mirage City Council voted on Aug. 17 to approve a development agreement with Compass Data Centers PHX 2 for a multi-building project at the southwest corner of El Mirage Road and Peoria Avenue.

Staff told council the agreement requires Compass to construct 0.5 of the street improvements along Peoria Avenue once APS removes power poles, allowing the developer to move forward with certificates of occupancy in the interim. "No, this development agreement is strictly because this project Compass is required to build 0.5 street improvements along Peoria Avenue," staff said during questions.

Public commenters, including Arturo Barunda, pressed council on potential water impacts, citing national examples of wastewater and groundwater problems at large data facilities. "What good is a park when our water is threatened by toxic industrial waste?" Barunda asked, urging impact fees and transparency on water usage. Staff and the applicant responded that Luke Air Force Base had reviewed the project and that site-specific stipulations addressing mission concerns were incorporated.

Council members split on the item; council approved the agreement with one member voting no. Staff did not provide a project-level municipal water‑consumption total in the hearing; council discussion focused on mitigation via stipulations and off‑site improvements secured by the agreement.

Next steps: Final engineering, pole removal by APS and coordination of Peoria Avenue improvements will determine construction timing; the council did not adopt a separate impact-fee ordinance at this meeting.