Maricopa County, Arizona, December 13, 2025
The Maricopa County Board of Supervisors has approved a significant rezoning request for a $25 billion data center hub on a 2,000-acre site near Tonopah, Arizona. This project aims to bolster local economic growth and meet the increasing demands of the artificial intelligence sector. While it presents numerous opportunities, local residents have raised concerns about potential environmental impacts, prompting developers to engage with the community to address these issues.
Maricopa County Approves $25 Billion Data Center Hub
New technology infrastructure project set to boost local economy and meet AI demands.
Maricopa County, Arizona – The Maricopa County Board of Supervisors has approved a rezoning request for a proposed $25 billion data center hub, marking a significant step in the development of a major technology infrastructure project in the region. The approval pertains to a 2,000-acre parcel of land near Tonopah, Arizona, acquired earlier this year by Arizona Land Consulting and venture capitalist Chamath Palihapitiya for $51 million. The site, known as Hassayampa Ranch, is intended to host a data center capable of supporting one gigawatt of power, primarily to meet the growing demands of the artificial intelligence industry.
While this project represents a robust opportunity for economic growth and innovation, it is not without controversy. Local residents and adjacent landowners have voiced concerns related to potential pollution, decreased property values, and the anticipated high water and energy consumption associated with such a large-scale development. In light of these concerns, developers have committed to collaborating with neighbors to address the issues raised. Supervisor Debbie Lesko has underscored the necessity for development in the area to advance economic growth and technological progress.
Support for Modern Zoning Regulations
The approval of the Hassayampa Ranch Data Center aligns with Maricopa County’s recent initiatives to modernize its zoning ordinances. The Board of Supervisors has overhauled its zoning regulations, which now includes a first-time definition for data centers. This updated ordinance facilitates the construction of data centers in designated industrial areas, aiming to strike a balance between economic development and local concerns. Board Chair Thomas Galvin has pointed out the significance of situating such projects in appropriate locations to mitigate detrimental impacts on residential communities.
Strategic Development Location
The Hassayampa Ranch Data Center boasts a strategic proximity to other major developments, including the Teravalis master-planned project and the Belmont development area in Buckeye, Arizona. This location is part of a broader trend in the region as municipalities like Mesa and Marana pursue similar initiatives. For instance, the Marana Planning Commission has recommended rezoning for a 600-acre data center project, illustrating the increasing interest in establishing data centers in the area to bolster technological infrastructure and economic development.
Community Engagement and Stakeholder Involvement
As the Hassayampa Ranch Data Center progresses, stakeholders—including local residents, business owners, and government officials—will be crucial in assessing the project’s impact on the economy, environment, and community. By keeping lines of communication open, developers aim to address concerns while tapping into the numerous benefits that come with such a significant investment in technology infrastructure.
Conclusion
The approval of the Hassayampa Ranch Data Center represents a pivotal moment for economic growth in Maricopa County. While it faces skepticism from some community members, the potential for job creation, technological advancement, and further private investment cannot be overlooked. As Phoenix continues to grow and adapt, supporting local entrepreneurial efforts will be vital in shaping a prosperous economic future for all residents.
Frequently Asked Questions (FAQ)
What is the Hassayampa Ranch Data Center?
The Hassayampa Ranch Data Center is a proposed $25 billion data center hub intended to support one gigawatt of power, primarily to meet the growing demands of the artificial intelligence industry. It is located on a 2,000-acre parcel of land near Tonopah, Arizona, acquired earlier this year by Arizona Land Consulting and venture capitalist Chamath Palihapitiya for $51 million.
What concerns have been raised about the project?
Local residents and adjacent landowners have expressed concerns regarding potential pollution, decreased property values, and high water and energy consumption associated with the development. Developers have pledged to collaborate with neighbors to address these issues, while Supervisor Debbie Lesko emphasized the need for development in the area to support economic growth and technological advancement.
How does this project fit into Maricopa County’s zoning regulations?
The project aligns with Maricopa County’s recent efforts to modernize its zoning ordinances. The Board of Supervisors overhauled its zoning regulations, including the first-time definition of data centers within county zoning rules. The updated ordinance allows data centers to be built in specific industrial areas, aiming to balance economic development with community concerns.
What other data center projects are underway in the region?
Other municipalities in the region, such as Mesa and Marana, are also considering or approving data center projects. For example, the Marana Planning Commission recently recommended rezoning for a 600-acre data center project, reflecting the growing interest in establishing data centers in the area to support technological infrastructure and economic development.
Key Features of the Hassayampa Ranch Data Center Project
| Feature | Details |
|---|---|
| Project Value | $25 billion |
| Location | 2,000-acre parcel near Tonopah, Arizona |
| Land Acquisition | Acquired for $51 million by Arizona Land Consulting and Chamath Palihapitiya |
| Power Capacity | One gigawatt |
| Primary Industry Served | Artificial Intelligence |
| Community Concerns | Potential pollution, decreased property values, high water and energy consumption |
| Developer’s Response | Commitment to collaborate with neighbors to address concerns |
| Supervisor’s Emphasis | Need for development to support economic growth and technological advancement |
| Strategic Location | Near Teravalis master-planned development and Belmont development area in Buckeye, Arizona |
| Regional Trend | Other municipalities like Mesa and Marana considering or approving data center projects |
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