Goodyear moves to set rules for data centers as industry expands

By James Goldmeer
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Goodyear officials are moving to formally regulate data centers as the fast-growing West Valley city continues attracting digital infrastructure projects, prompting new zoning rules aimed at addressing noise, building design and water-use concerns.

The city currently has six active data center campuses and a seventh under construction, positioning Goodyear as one of the Phoenix area’s emerging hubs for the rapidly expanding industry.

During a recent work session, the Goodyear City Council reviewed proposed updates to the city’s zoning ordinance that would standardize how future data centers are approved and regulated. The effort would shift the city away from negotiating project requirements case by case and toward a formal framework that establishes clear development standards.

Development Services Director Katie Wilkin said the city has gained experience since its first data center project opened in 2011.

“Now we're codifying a lot of that learning so that there's clarity and consistency in the process,” Wilkin told the council.

Design and neighborhood concerns

Council members said one of the most common complaints about data centers involves the buildings' massive, boxlike appearance.

Councilmember Trey Terry said the structures often stand out visually compared with surrounding development.

“I think one of the biggest reasons modern data centers get bad PR is they look like blocks out of Minecraft,” Terry said, referencing the block-style graphics of the popular video game.

Council members discussed potential design guidelines that could encourage developers to incorporate architectural features that make the buildings resemble office or commercial structures rather than industrial facilities.

Councilmember Laura Kaino pointed to an existing facility along Bullard Avenue as an example of a more compatible design, noting the building’s appearance blends into nearby commercial development.

The draft zoning proposal would also establish standards for noise and building placement.

While data centers themselves typically operate quietly, backup generators used during emergencies must be tested regularly. Those tests can generate noticeable noise, particularly in areas near residential neighborhoods.

Under the proposed ordinance, operators would provide testing schedules and limit the times and days generator testing can occur. Facilities located within 500 feet of residential areas could also be required to submit annual noise monitoring reports.

The proposal also calls for a 300-foot setback from residential zones and 100-foot setbacks from commercial or industrial areas.

Power and infrastructure

Council members also addressed common misconceptions about how data centers affect local utilities.

Councilmember Brandon Hampton said many facilities in Goodyear fund their own electrical infrastructure rather than relying on existing residential systems.

“Data center brings our own power,” Hampton said. “It's not like a lot of data centers throughout the country where they lump that all together with residential and commercial.”

Hampton said the city still expects operators to integrate responsibly with surrounding communities.

“But I do want them to be good neighbors,” he said.

Hampton also noted Arizona’s relatively stable climate has helped attract the industry.

“Our lack of natural disasters is one of the reasons why data centers are really moving here,” he said. “We don’t deal with tornadoes, hurricanes.”

Water use remains one of the most common concerns residents raise about data centers, though some councilmembers said many of those concerns are based on outdated assumptions.

Councilmember Vicki Gillis said she frequently hears from residents worried about the industry’s water consumption.

“I just think I get a lot of people that say to me, ‘Data centers take so much water,’” Gillis said. “Well, they really don’t today.”

City officials say water demand is carefully regulated through Goodyear’s water allocation policies.

“We look at it just like a financial budget,” said Barbara Chappell, the city’s water services director. “We only have so much money to go around, or water in this instance. And so we give a developer a budget for a parcel.”

The city’s Water Resources Allocation Policy requires large water users, including data centers, to justify projected demand while remaining within Goodyear’s long-term supply planning.

Ray Diaz, the city’s water resources manager, said developers must also file water usage reports with state regulators.

“We have to show every 10 years that we have a 100-year supply of water to meet our current and future demands,” Diaz said.

Across Arizona, the number of data centers has grown rapidly as demand for cloud computing, artificial intelligence and online services expands.

Researchers say the infrastructure requires significant cooling to manage the heat produced by constantly running servers.

Carrie Hiddenbottom, an associate professor at the University of Arizona who studies water and energy use in data centers, said communities throughout the region are increasingly focused on how the facilities affect local resources.

“It’s one of the most pressing challenges in our region,” Hiddenbottom said. “Communities are worried that data centers are especially going to take all of the water and energy in those areas.”

Research into cooling systems shows a trade-off between water and electricity use. Facilities that rely on air-cooled systems generally use less water but require more electricity, while evaporative cooling systems conserve energy but consume significantly more water.

Part of a broader zoning overhaul

The proposed data center rules are part of a broader effort to modernize Goodyear’s zoning ordinance.

City planning manager Christian Williams said the update is intended to give the city more control over how growth occurs as development accelerates across the West Valley.

“The state does not feel that we are doing enough and they are considering, every year, taking different abilities for the cities to regulate its own future away,” Williams said. “We want to be a part of the solution. We want to be in control of our own destiny, and we want our citizens to be in control of their destiny.”

The zoning update will revise development standards such as parking requirements, landscaping and permitting processes but will not change existing zoning designations for private property.

Consultant Matthew Klyzeiko said the goal is to create a zoning code that balances growth with neighborhood protection.

“The grand slam is if we can achieve all of this, have a code that is functional, that is current, and then also continues to guide the city in a positive direction,” he said. “It’s all about balance.”

The issue is also becoming part of a national policy discussion.

Kaino recently was appointed to the Energy, Environment and Natural Resources Committee of the National League of Cities, where she said data centers are a frequent topic among local leaders.

“These topics, infrastructure, water, energy, environment, they’re really relevant in Arizona right now,” Kaino said. “I think we’re going to see a lot more discussion even in the city council about it.”

Kaino said she hopes to bring Goodyear’s experience managing water resources into that national conversation.

“Goodyear has been a very good steward of water,” she said. “Planning in advance and anticipating need is how we can contribute to conversations at the national level.”

City staff will continue gathering public feedback on the zoning update before bringing the proposed ordinance back to the council for consideration later this year.

If adopted, the changes would establish formal standards for data center development in Goodyear as the city continues to attract new technology investment.

Visit goodyearaz.gov for more information. 

James Goldmeer
Reporter | Goodyear & Litchfield Park

jgoldmeer@iniusa.org

Meet James
James Goldmeer joined Independent Newsmedia, Inc., USA, in July 2024, starting their career as a reporter in Goodyear and Litchfield Park.

Community: James grew up in the West Valley, calling Avondale home and going to school in Glendale and Peoria. Returning to the community after university, James plans to get involved in everything arts and culture, and civil rights.

Education: Northern Arizona University a bachelor's degree in Journalism, a certificate in Professional Communications, with a minor in English. 

Random Fact: James spent half a year as an intern for the Arizona House of Representatives communication team, working with legislators to inform the public through press releases and social media.  

Hobbies: James collects postcards and old books, reads memoirs and attends local jazz shows.