Arizona Attorney General Probes Phoenix Data Center
The state is investigating a massive data center campus under construction in an Ahwatukee neighborhood.
Updated on Oct. 29, 2026 in Data Centers
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Arizona Attorney General Kris Mayes has launched an investigation into a data center project in Phoenix that began construction in April 2026. The facility spans nearly 1 million square feet across a 38-acre site in Ahwatukee.
Why it matters
The project faces scrutiny because Phoenix approved the development without requiring environmental or health impact studies. Officials argue the plan adheres to industrial zoning designations established in 1996, while the state investigation questions the oversight process.
The campus consists of five two-story buildings covering 1 million square feet on a 38-acre lot. Power requirements for the facility include an electrical substation and more than 100 diesel generators.
The players
Kris Mayes
As the Arizona Attorney General, she is the state's chief legal officer and lead investigator for the project.
Menlo Digital
This private firm is the developer responsible for the construction and planning of the Ahwatukee data center campus.
Phoenix
This municipal government oversaw the zoning approvals and development permits for the data center facility.
The details
Menlo Digital purchased the land north of Chandler Boulevard in 2015 and submitted development plans in 2024. Because the approval occurred before a 2025 city ordinance, the project proceeded despite the lack of specialized health reviews.
Timeline
The property was originally rezoned for industrial use in 1996.
Menlo Digital purchased the 38-acre site in 2015.
Plans for the data center were submitted to the city in 2024.
Construction on the data center campus began in April 2026.
The Attorney General announced an investigation into the project in October 2026.
The Tech Race
This project highlights the growing tension between rapid digital infrastructure expansion and legacy municipal zoning policies. It marks a shift where cities are increasingly forced to update regulations to address the specific environmental and electrical demands of modern data centers.
Residents in the Ahwatukee neighborhood near Chandler Boulevard may experience increased noise and emissions due to the reliance on over 100 diesel generators for backup power. The state investigation aims to clarify whether these impacts were adequately considered by local authorities.
The takeaway
Large-scale infrastructure projects often utilize older zoning laws that may not account for current industrial footprints. Homeowners concerned about local development should review municipal plans and check if new ordinances apply to active projects.
Further reading
Learn more about the local industry at the Phoenix Data Centers section.
Source note: This article includes information reported by AZfamily.
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Should city zoning laws prohibit data centers from being built in residential neighborhoods?
