Scottsdale is set to explore potential safeguards for data centers following a recent City Council study session that assessed regulation practices and the implications of larger developments on the community. The council has tasked the city attorney with presenting regulatory options that would address concerns such as water usage, noise, and safety.
Current Landscape of Data Centers
Scottsdale currently hosts two data centers, operational since 1999 and 2000, which are considered modest in size and utility demands compared to the larger facilities being developed in other regions. As of now, there are no pending applications for new data centers, and city economic development staff reported no active discussions with potential developers.
Data centers serve as facilities that house computer servers and equipment responsible for storing, processing, and transmitting digital information. They require extensive cooling systems, electrical infrastructure, and backup power. Erin Perreault, Senior Director of Planning and Development Services, noted that while the concept of data centers is familiar, the scale and intensity of newer facilities have grown significantly due to increasing demand for artificial intelligence and cloud computing.
Regulatory Framework and Zoning Considerations
Scottsdale’s zoning regulations do not specifically define data centers; instead, they fall under a broader category known as “data processing, hosting and related services.” These are permitted within the city’s Industrial Park and General Industrial zoning districts, primarily located in the Scottsdale Airpark. Existing regulations cover various standards such as building height, setbacks, equipment screening, and site design but do not differentiate between smaller data centers and larger facilities.
Currently, there is no requirement for a conditional use permit specifically for data centers. According to Kevin Burke, Senior Director of Economic Development and Tourism, the land and utility requirements for large data centers limit their development in Scottsdale, as the city lacks the site availability found in other communities across the region.
Future Steps and Community Impact
Staff indicated that the existing data centers in Scottsdale have electrical capacities of approximately 5 and 15 megawatts. In contrast, newer hyperscale data centers may require 200 megawatts or more. Additionally, water demand varies significantly based on a facility’s size and cooling technology.
Next steps include reviewing strategies utilized by other communities, collaborating with city departments and utility providers, and determining the regulatory scope available under current law. Any proposed measures will be presented for further consideration by the City Council.
Source: City of Scottsdale
