GILBERT, AZ — As artificial intelligence drives demand for data centers across Arizona, Gilbert is considering stricter regulations aimed at protecting its water supply and nearby neighborhoods without unnecessarily restricting potential future development.
The town is reviewing proposed changes to its Land Development Code that would establish new standards for water use, zoning, noise, lighting and building design.
The proposal would prohibit open-loop evaporative cooling systems and require primary data centers to use reclaimed water for cooling.
Water consumption remains a major concern. Town officials say a data center proposed in 2021 would have required approximately 2 million gallons of water daily. The developer ultimately decided against building in Gilbert.
“This is our attempt at trying to get ahead of the game and establish clear and predictable standards for not only residents, but for the developers,” Gilbert town planner Sal DiSanto said.
Some residents have raised concerns about where data centers could be built and their potential impact on surrounding communities.
Town leaders are also examining whether the proposed regulations could unintentionally restrict smaller facilities supporting local businesses, hospitals and emerging technologies.
“I don’t want to create an ordinance for the past when we can do one for the future,” Vice Mayor Chuck Bongiovanni said.
The economic benefits are another consideration. Gilbert’s Office of Economic Development says large data centers can generate construction activity and tax revenue but relatively few permanent jobs.
Andrea Clinton, director of community engagement for the Arizona Data Center Alliance, said collaboration between the industry and communities is important as demand for data centers continues to grow.
The Town Council voted to delay a decision to allow further review of the proposed regulations, particularly how they could affect smaller facilities and changing technology.
For now, Gilbert’s existing data center regulations remain in effect. Town officials say no data center use-permit applications have been submitted since the requirement was introduced in 2016.
