The Gilbert Town Council has directed municipal staff to revise a set of proposed enhanced regulations for data centers and bring the updated measure back for consideration on Dec. 15.
Council members were scheduled on Oct. 20 to vote on proactive regulations designed to limit where and how future data centers can operate within town limits. The proposed ordinance includes prohibiting open-loop evaporative cooling systems, restricting data centers exclusively to Light Industrial- and General Industrial-zoned properties, establishing a 650-foot setback distance from residential areas, and prohibiting the town from providing municipal potable water to principal data centers for cooling purposes.
Vice Mayor Chuck Bongiovanni urged the council to take additional time before finalizing the rules. During the meeting, Bongiovanni stated that Gilbert has only four or five parcels of land large enough to accommodate a major data center, noting that future technology trends may lean toward smaller, micro data centers built by individual businesses. He supported a suggestion by Councilman Monte Lyons to consult an expert regarding industry trends and urged staff to seek input from the Gilbert Chamber of Commerce and local business owners. Bongiovanni expressed a desire to focus regulation efforts on smaller facilities rather than focusing exclusively on large operations.
Councilwoman Yung Koprowski noted that the council was addressing local business concerns, pointing out that recent revisions to the proposal would allow accessory data centers to use town drinking water. Water Resources Manager Lauren Hixson explained to council members that this adjustment was designed to allow existing operations, such as hospitals, to add or expand small internal data processing services without requiring expensive extensions of the town's reclaimed water system.
Koprowski favored taking action on the proposed ordinance immediately rather than delaying. She argued that the proposed measure would reduce the town's current vulnerability to data center developments and noted that council could always amend the rules at a later date as new information becomes available.
Councilman Kenny Buckland cast the sole vote against delaying the decision. Buckland cited a March study from Arizona State University which found that large data centers raise downwind neighborhood air temperatures by 2.5 degrees. He raised concerns about the potential impact on local utility bills for residents who would have to use more electricity to cool their homes.
Councilman Jim Torgeson inquired whether the town could separate the regulation into two parts, approving rules for large facilities immediately while addressing smaller accessory facilities later. Development Services Director Kyle Mieras cautioned against splitting the proposal, explaining that adopting a complete regulation at once and amending it later would be easier and avoid leaving the town vulnerable regarding accessory facilities. Torgeson ultimately supported delaying the vote to address the Chamber of Commerce's concerns after learning that future amendments could take six months to a year to process.
Public comment during the meeting included remarks from local resident Nicki Reber, who spoke against allowing additional data centers in Gilbert. Reber expressed concern over noise and resource usage, comparing data center operations to an electrical battery storage facility located near her bedroom window. Reber noted that cooling fans generate continuous noise and that alternative recirculating water systems consume significant amounts of electricity.
Currently, Gilbert is home to one active data center, the 14,000-square-foot AZO1 Phoenix facility operated by US Signal, located at the Sunrise Business Park near McQueen and Elliot roads.
