Phoenix's planned data center would utilize existing power grid infrastructure rather than requiring new transmission capacity.

Phoenix Mayor Kate Gallego outlined the city's multi-year regulatory approach to data centers and outlined the specifics of a downtown project near Seventh Avenue and Grant Street.

"Several years ago, before data centers were in the news, we did a new program to require a special use permit for every data center," Gallego said in remarks to KTAR News 92.3 FM. "That made sure that we could address the very significant health and safety issues around these data centers, that they go in the right place, that we have cybersecurity protections, fire, appropriate water supply and so much more."

The downtown Phoenix project predates these requirements but is notable for its collaboration with neighbors and additional safety measures. "It was the first data center in Phoenix to agree to significant health and safety protections, from cybersecurity to addressing some of the more local fire challenges," Gallego said.

The facility is relatively modest at 24 megawatts, "dramatically smaller than the closest data center," and will rely on Arizona Public Service (APS) grid power rather than on-site generation. This stands in contrast to larger facilities now coming to the region. "In many ways that is good because we are seeing data centers like the one in the West Valley bring in their own power plant," Gallego said.

The West Valley project has applied for an air quality permit to use a cruise ship engine to power its data center—a comparison Gallego did not make lightly. "I never thought, as mayor of Phoenix, that I would have to learn about cruise ship engines."

Using existing grid infrastructure also avoids the disruption of new transmission lines to the neighborhood. Gallego recalled a church that had lost part of its children's playground to a transmission line required for a previous project. "In some ways, there are real benefits for a smaller data center that does already have power and won't have to disrupt a neighborhood."