Data center developers overhaul strategies as community backlash stalls Arizona projects

Data center developers are tweaking everything from their messaging to their designs while projects stall as backlash towards the facilities explodes across the Valley and the country.

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While demand for capacity shows no sign of waning as the rush to create capacity for artificial intelligence – data center vacancy is at 1% nationally for the third year in a row – getting local communities on board is now the biggest obstacle for the industry, according to a new report from JLL.

More than 66 gigawatts of data center capacity are under construction in North America today, with about 2 gigawatts underway in Arizona, according to JLL’s report.

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In Phoenix and neighboring cities, the entitlement process for new data centers is “infinitely harder” today than it was a year ago, according to Adam Baugh, partner at Withey Morris Baugh PLC, who counts data center developers among his clients.

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Read more of this story from the Business Journal.

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