Monday, October 26, 2026·Focal News

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Gilbert pauses data center rules review as officials weigh water limits and neighborhood impacts

Gilbert Town Council delayed a decision on proposed data center standards, seeking more review of how the rules could affect smaller facilities and future technology. The draft would require reclaimed water for cooling and bar open-loop evaporative systems amid concerns over water demand and nearby neighborhoods.

Gilbert pauses data center rules review as officials weigh water limits and neighborhood impacts

Gilbert officials are considering tighter rules for data centers, including limits on cooling systems and requirements to use reclaimed water, but the Town Council has postponed a decision while it examines how the proposal might affect smaller facilities and changing technology.

The proposed Land Development Code changes would set standards for water use, zoning, noise, lighting and building design. They would prohibit open-loop evaporative cooling and require primary data centers to use reclaimed water for cooling.

Water demand is a central concern. Town officials said a data center proposed in Gilbert in 2021 would have used about 2 million gallons per day. The developer ultimately chose not to build there.

The town is seeking rules that offer residents and developers predictable standards without ruling out future development, Gilbert planner Sal DiSanto said. Residents have also raised concerns about where data centers could be located and how they might affect surrounding neighborhoods.

Vice Mayor Chuck Bongiovanni said the town should avoid writing rules that only address current technology. Officials are reviewing whether the draft could inadvertently limit smaller facilities that serve local businesses, hospitals and emerging technologies.

Economic benefits are part of the debate. Gilbert’s Office of Economic Development says large data centers can bring construction activity and tax revenue, but typically create relatively few permanent jobs. Andrea Clinton, community engagement director for the Arizona Data Center Alliance, said cooperation between the industry and communities is important as demand grows.

For now, existing rules remain in place. Gilbert has required a use permit for data center projects since 2016, and town officials said no applications for such permits have been submitted since that requirement began.

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