Oro Valley considers getting ahead of the issueTomorrow, the Oro Valley Town Council will consider whether to begin reviewing the Town Code as it relates to data centers. As it stands now, Oro Valley does not appear to have development regulations written specifically for large-scale data centers. That leaves the Town relying on existing zoning categories and development standards for a type of use that can differ significantly from a conventional office, warehouse or industrial building. At a minimum, we expect that Council will consider whether the code should be clarified or amended so that any future proposal is evaluated under standards that reflect Oro Valley’s community values.
Southern Arizona communities are doing the same
Oro Valley is not alone. Local governments across Southern Arizona have been examining the same issue. Marana adopted specific data center regulations in 2024 and is now considering additional requirements dealing with noise and decommissioning. Tucson adopted regulations for large-scale data centers in August 2026 following a year-long review. Pima County is currently developing its own zoning-code text amendment, including standards for development, design and noise mitigation, after the Board of Supervisors initiated the process in 2025.
The issue is a complex one. Large data centers can occupy dozens or even more than 100 acres and contain hundreds of thousands or more than a million square feet of buildings. They can require extraordinary amounts of electricity, in some cases enough to power roughly 100,000 homes, while water use can vary considerably depending on the cooling system employed. They can also require substations, backup generators and extensive mechanical equipment. Construction can create hundreds or thousands of temporary jobs and generate significant construction sales tax revenue. However, once operating, these facilities may provide relatively few permanent jobs compared with their size and investment. Significant property tax revenue can also be generated by a data center. That revenue, however, would not go directly to the Town of Oro Valley because the Town does not levy a property tax. Thus, communities must weigh potential tax and economic benefits against concerns involving water, power infrastructure, noise, building scale, nearby residential uses and the amount of land devoted to a relatively low-employment use.
Barrett called for a such a proactive review
During her election campaign, Mayor-elect Melanie Barrett made her position clear. “I am against Data Centers in or adjacent to Oro Valley,” she wrote, adding that, if elected, she would “...review our Town Code to see what can be done to address this issue proactively.” Barrett cited concerns about water and energy demand, limited long-term employment and potential effects on Oro Valley’s quality of life. She also pointed to the large State Trust Land parcels adjoining Oro Valley as areas that could someday attract interest from data center developers. (Source: Melanie Barrett campaign website.)
Setting the rules before a proposal arrives
Wednesday’s discussion does not put a data center proposal before the Council, nor does it commit the Town to any particular regulation. It begins a more basic conversation about whether Oro Valley should establish the rules before such a proposal arrives. Given what neighboring jurisdictions are already doing, reviewing the Town Code now gives Oro Valley an opportunity to decide in advance where, if anywhere, large data centers should be permitted and what protections should be required for residents, water resources and the character of the community.
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