---
title: "Data Centers FAQ - City of Avondale"
url: https://stacklist.com/card/c0a227f6-7862-44b9-8ed1-a514ee45f591
source_url: "https://avondaleaz.gov/government/departments/economic-development/data-centers-faq/"
stack: https://stacklist.com/stack/bdc8bd54-88b9-4cf5-9784-73d6295a550a
summary: "Data Centers FAQ from Avondale, Arizona addresses common questions about technology investments, including three major data center projects (Prime Data Centers, Stack Infrastructure, and QTS Data Centers) that will bring significant economic benefits and jobs to the community. The facilities use advanced closed-loop cooling systems, renewable energy, and create minimal environmental impact while generating $863M+ in state and local tax contributions."
tags: "data-centers, arizona, avondale, economic-development, infrastructure, renewable-energy, faq"
key_entities: "Avondale (location), Arizona (location), Phoenix metro (location), Prime Data Centers (organization), Stack Infrastructure (organization), QTS Data Centers (organization), Arizona Commerce Authority (organization), NAIOP (organization), JLL (organization), closed-loop cooling (concept), renewable energy (concept), hyperscale campus (concept), Prime Data Centers Groundbreaking May 2026 (event)"
classification: "reference"
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---

# Data Centers FAQ - City of Avondale

Data Centers FAQ Answering common questions about technology investments in our community. $863M+ Arizona data center state and local tax contribution (2023) Arizona Commerce Authority (2023); NAIOP Data Center Market Report; JLL North American Data Center Report H2 2024 $8-$17 Returned per $1 of city services used Arizona Commerce Authority (2023); NAIOP Data Center Market Report; JLL North American Data Center Report H2 2024 #2 Phoenix metro projected data center market by planned capacity Arizona Commerce Authority (2023); NAIOP Data Center Market Report; JLL North American Data Center Report H2 2024 What is a Data Center? A data center is a highly secure facility housing computer servers and network equipment that support cloud computing, internet services, financial transactions, healthcare systems, artificial intelligence applications, and many of the digital services residents use every day. Data centers are generally considered one of the lowest-impact industrial land uses — generating minimal traffic, no smokestacks, and quiet operations compared to manufacturing or warehouse facilities. Avondale Data Centers Prime Data Centers Groundbreaking on May 2026 Located on S. Avondale Blvd and W. Lower Buckeye Rd 1.3M Sq Ft Building Space 66.5 Acre Campus Five-building hyperscale campus; first 3 buildings (267,000 sq ft/ 48MW each) broke ground May 2026. Phase One: 260,000 square feet closed-loop cooling facility using approximately 97% less water than an equivalent residential neighborhood. Committed to 100% renewable energy; purchases Water Restoration Certificates at 120% of annual consumption. Dedicated on-site substation with up to 250MW capacity. The campus is pursuing SOC2 Type II (independent audit of data security controls) and ISO 27001 (international information security management standard) certifications — two of the most rigorous third-party security verifications in the industry. Stack Infrastructure Under Construction Located on S. Litchfield Rd and W. Lower Buckeye Rd 1M Sq Ft Building Space 100 Acre Campus Approximately 1 million square feet across three anticipated buildings on a 100-acre campus. First building expected to be completed in 2027. Access to renewable power from Arizona’s solar utilities; closedloop cooling reduces water use. QTS Data Centers Planned Located on S. Avondale Blvd and W. Lower Buckeye Rd 3.2M Sq Ft Building Space 206 Acre Campus Eight-building, multi-story campus totaling approximately 3.2 million square feet. Campus will incorporate a closed loop water system. Campus master plan includes supporting commercial and retail development. QTS cited Avondale’s skilled workforce as a primary factor in site selection. Frequently Asked Questions Do data centers create jobs? Yes. Construction phases create hundreds of jobs per building for electricians, engineers, and skilled trades. Once operational, facilities provide long-term positions in IT, cybersecurity, electrical systems, facilities management, and engineering — typically with competitive wages and benefits. Will my electricity rates go up due to Data Centers? No. Data centers are served under separate utility rate structures designed for large industrial users. Electrical infrastructure upgrades are funded by the developers — not passed on to Avondale residents. The City has worked closely with utility providers to plan capacity without impacting service reliability for residents and existing businesses. How much water do they use? Very little. All data centers approved in Avondale use closed-loop cooling systems that completely eliminate ongoing process water use during operations — a deliberate policy choice the City made early on. Phase One of Prime Data Centers uses approximately 97% less water than an equivalently sized residential neighborhood. Are data centers noisy? Data centers are generally quieter than most industrial uses. Every project is reviewed for compliance with noise standards. Setbacks, acoustic screening, and equipment enclosures may be required. Backup generators are used only during power outages and limited periodic testing. The City’s noise ordinance (Chapter 15, Avondale Code of Ordinances) prohibits unreasonably loud, disturbing, or unnecessary noise. Avondale Code of Ordinances What about air quality? Data centers have no manufacturing processes, smokestacks, or routine combustion emissions. Daily operations run on utility-supplied electricity. They rank among the lowest-impact industrial uses from an air quality standpoint. Will they increase traffic? Data centers generate substantially fewer daily vehicle trips than warehouses, manufacturing, or large retail centers. Most traffic occurs during construction and employee shift changes. Traffic impact analyses are required as part of Avondale’s development review process. What happens to native plants on the sites? All projects must comply with state and local native plant protection regulations. Protected plants including saguaros are evaluated during planning. Relocation programs preserve viable specimens, and landscaping plans incorporate native and drought-tolerant vegetation. How has the City changed its approach to data centers over the past few years? Like many cities across the Valley, Avondale has seen significant interest from data center developers. Early on, the City took a proactive approach by prioritizing the responsible use of natural resources. Avondale was among the first communities in the region to restrict water-cooled data centers, choosing instead to consider only closed-loop, aircooled facilities. This approach allows Avondale to support economic development while protecting long-term water resources. Phase One of the Prime Data Centers project will include a 260,000-square-foot closed-loop cooling facility that uses approximately 97 percent less water than an equivalently sized residential neighborhood — roughly comparable to the water use of only a few single-family homes. In parallel, the City began working closely with utility providers to ensure adequate electrical capacity to support these high-energy users without impacting service reliability for residents and existing businesses. What has the City heard from residents regarding new data center development? Initial feedback from residents focused primarily on concerns about water use. As the conversation evolved, residents also raised questions about the appearance and scale of data center facilities. In response, the City worked directly with developers to ensure buildings have an office-style design and incorporate substantial landscape buffers where adjacent to other development. Over time, residents have come to better understand the role these facilities play in strengthening Avondale’s tax base. Revenue generated by data centers helps fund community amenities without increasing taxes on residents. How will revenue generated by data centers benefit residents? Revenue generated from commercial and industrial development helps support community priorities such as: Parks and recreation facilities Public safety services Water and wastewater infrastructure Community programs and services Street and roadway improvements Economic development initiatives Future quality-of-life investments A stronger commercial tax base helps the City fund infrastructure and amenities while reducing pressure to rely solely on residential taxpayers for future improvements. Bottom Line: Growth in Avondale’s commercial and industrial sectors helps create resources that can be reinvested into the community to enhance services, amenities, and opportunities for residents. Will data centers increase the urban heat island effect? Residents have asked whether converting land to industrial development could increase local temperatures. Any development that replaces undeveloped land can contribute to localized heat retention if not properly designed. Avondale’s Design Manual for Commercial, Industrial, and Multi-Family Development directs developers to use landscape techniques for energy control, including shade trees, tree canopies, and building envelopes designed to manage solar exposure. The Design Manual also requires enhanced landscaping within transition setbacks, including evergreen trees at minimum 20-foot intervals along property lines abutting residential uses. Avondale has participated as a pilot city for the University of Arizona CLIMAS (Climate Assessment for the Southwest), an urban heat mapping program that informs planning and infrastructure investment decisions. All development projects must meet drainage standards and include open-space features to reduce heat island impacts where feasible. Bottom Line: While any urban development can affect local temperatures, Avondale’s Design Manual establishes landscape and shading standards for commercial and industrial projects that help mitigate heat retention. Source: City of Avondale Design Manual for Commercial, Industrial, and Multi-Family Development (avondaleaz.gov). Have pedestrian safety improvements been evaluated? The City understands concerns regarding pedestrian safety in the area. Transportation studies conducted for data center projects evaluate roadway operations, traffic flow, and safety considerations associated with each development. Potential enhancements may include improved crosswalks, traffic signal improvements, sidewalk connections, street lighting, and traffic calming measures. Data centers generate significantly less ongoing traffic than warehouses or retail centers of comparable size — reducing overall pedestrian conflict points. Future pedestrian bridges, enhanced crossings, or additional safety infrastructure would be evaluated based on engineering studies, traffic volume, funding availability, and community needs. Bottom Line: While any urban development can affect local temperatures, Avondale’s Design Manual establishes landscape and shading standards for commercial and industrial projects that help mitigate heat retention. Source: City of Avondale Design Manual for Commercial, Industrial, and Multi-Family Development (avondaleaz.gov). What economic benefits will these projects generate? Data centers represent some of the largest private investments occurring in Avondale. Prime Data Centers and STACK Infrastructure are currently under construction in Avondale. Construction creates hundreds of jobs per building, supporting local contractors, electricians, engineers, and skilled trades. Operational facilities provide long-term technology, engineering, security, and management positions with competitive wages. Data centers contribute property taxes, utility-related revenues, commercial rental taxes, and other revenues that directly support municipal services. Nationally, for every $1 data centers use in local government services, they return $8–$17 in local tax revenue. Bottom Line: Data centers create high-quality jobs, attract billions in private investment, and strengthen the City’s long-term financial position. What about sustainability and community stewardship? Several developers have committed to sustainability initiatives that extend beyond the facility itself. Avondale was among the first Phoenix-area communities to require closed-loop, air-cooled data centers — protecting the region’s water resources. Prime Data Centers has committed to 100% renewable energy and purchases Water Restoration Certificates equal to 120% of its annual water consumption. Prime Data Centers has proposed an on-site beekeeping and pollinator-support program, supporting biodiversity and habitat restoration on previously disturbed land. Major data center operators are among the largest clean energy buyers in the world, supporting Arizona’s renewable energy future. The City requires office-style architectural design and substantial landscape buffers adjacent to residential areas. Bottom Line: Sustainability commitments — from renewable energy to water restoration to pollinator programs — demonstrate that responsible development and economic growth can go hand in hand in Avondale. How does Avondale ensure responsible development? Every project undergoes a comprehensive review process involving planning, engineering, utilities, and building safety professionals. The City evaluates: Infrastructure capacity and utility requirements Site design, landscaping, and drainage Traffic impact and pedestrian safety Noise standards compliance Neighborhood compatibility and land use alignment Bottom Line: Responsible development in Avondale means every project is carefully reviewed for infrastructure capacity, public safety, site performance, and neighborhood compatibility before it moves forward. Sources Arizona: $863M data center tax contribution (2023) PwCEconomicImpactAnalysis,citedinArizonaTechnologyCouncil(aztechcouncil.org,2024) Phoenix metro #2 in North America for planned capacity (4.2 GW) JLL North America Data Center Report — Midyear 2025 (jll.com) Avondale closed-loop cooling requirement City of Avondale (avondaleaz.gov); Grist (grist.org, March 2026) Closed-loop: 100 MW facility uses ~8,000 gal/day vs. 10x for residential Valicor Environmental Services (valicor.com, May 2026); Data Center Dynamics (March 2 026) Prime Data Centers: 240MW, 1.3M SF, May 2026 groundbreaking Business Wire press release, May 21, 2026; Prime Data Centers (primedatacenters.com) Prime: 97% less water than equivalent residential neighborhood Prime Data Centers (primedatacenters.com); City of Avondale Prime: Water Restoration Certificates at 120% of annual consumption Prime Data Centers Sustainability Report (primedatacenters.com) STACK Infrastructure: 1M SF, under construction Data Center Frontier (datacenterfrontier.com); STACK Infrastructure (stackinfra.com) QTS Data Centers: 206 acres, 3.2M SF, 8-building campus, 2024 acquisition Bloomberg; QTS Data Centers (qtsdatacenters.com); Avondale planning documents $8–$17 returned per $1 of local government services EconsultSolutions,DataCenterEconomic Impact Study (2019); AZ Capitol Times (June 2026) Arizona: 81,000 jobs supported; each data center job supports 6 others PwCEconomicImpactAnalysis,citedinArizonaTechnologyCouncil(aztechcouncil.org,2024) SOC2 Type II / ISO 27001 definitions American Institute of CPAs (aicpa.org); International Organization for Standardization (iso.org) Avondale landscape/shade standards for commercial & industrial development City of Avondale Design Manual for Commercial, Industrial, and Multi-Family Development (avondaleaz.gov) Avondale as pilot city for Univ. of Arizona CLIMAS (Climate Assessment for the Southwest) University of Arizona / Arizona Environment (environment.arizona.edu, February 2020) Arizona data center tax incentive: 10-year equipment sales/use tax exemption Arizona Commerce Authority (azcommerce.com); Arizona Department of Revenue Closed-loop cooling: 50–70% water reduction vs. evaporative system Environmental and Energy Study Institute (eesi.org); Power Magazine (October 2025)