Oro Valley Council Moves Quickly To Close Data Center Zoning Loopholes

Council votes to expedite changes to the Town Code
The Oro Valley Town Council voted 6-0, with one abstention, on October 7 to begin an expedited process to amend the Town's zoning code to prevent data centers from being permitted automatically in any zoning district. The action follows concerns that existing zoning provisions might allow data centers without specific regulations governing their development. As LOVE reported earlier this week, Oro Valley currently lacks development regulations written specifically for large-scale data centers.

Barrett seeks immediate action to close potential loopholes
Vice Mayor and Mayor-elect Melanie Barrett, who requested the agenda item with Mayor Joe Winfield, said she had become aware of possible loopholes in the Town Code that could allow data centers in several zoning districts. She compared the situation to the recent Board of Adjustment proceedings involving the interpretation of existing zoning provisions. Barrett also indicated that there might already be parties interested in pursuing data center development under the current code. She urged Council to act quickly, preferably before the current Council leaves office, to prevent developers from taking advantage of potential ambiguities.

A two-stage approach to regulating data centers
Barrett proposed addressing the issue in two stages. The first would clarify that data centers are not permitted by right in any Oro Valley zoning district. This means a developer could not rely solely on existing zoning permissions to establish a data center. The second stage, which Barrett suggested leaving to the incoming Council, would involve a more comprehensive review of potential regulations addressing noise, water consumption, electricity demands, and other impacts. She also suggested following similar regulatory efforts underway in Tucson and Pima County.

Council establishes an aggressive timetable
Barrett's motion directs that the Planning and Zoning Commission hold a special meeting on or before October 27, followed by a special Town Council meeting on October 28 to consider the proposed amendment. The motion also calls for a temporary moratorium on data center development to the extent legally possible while the review proceeds. Councilmember Murphy seconded the motion, which passed with six votes in favor and one abstention. Following the vote, staff raised concerns about meeting the required public notification deadlines, including notifying property owners in the C-1, C-2, and Technological Park zoning districts. The Council did not change the schedule.

The decision does not permanently prohibit data centers
The Council's action begins the process of changing the Town Code. It does not immediately establish new zoning restrictions or permanently prohibit data centers in Oro Valley. Rather, the proposed amendment would prevent data centers from being permitted automatically under existing zoning classifications. Whether the Town should eventually allow such facilities, where they might be located, and what development standards should apply remain questions for future consideration.

Oro Valley moves to establish the rules before development proposals arrive
The October 7 decision moves Oro Valley beyond simply considering whether its code needs revision. Council has now directed that a specific amendment be prepared and reviewed within three weeks. If the proposed timetable is met, the current Council will have an opportunity to act before the newly elected Council takes office. The broader discussion of whether data centers are appropriate for Oro Valley, and under what conditions, would then become a matter for the new Council to address.
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See our preview report on this.

Council Considers Addressing Land Use Code and Data Centers

Oro Valley considers getting ahead of the issue
Tomorrow, 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.

A land use with unusually large land and community impacts... but not as much economically

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 advocated for a proactive data center zoning review during her campaign
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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Bits and Pieces

Caton appointed Scottsdale Assistant City Manager

Greg Caton has been appointed as Assistant City Manager in Scottsdale. He was Oro Valley Town Manager from July 2011 to 2016. Caton was an Assistant Town Manager for one year prior to that.

Since leaving Oro Valley, Caton served as the City Manager in Grand Junction and as the Assistant City Manager for the City of Durango. 

Caton holds a bachelor's degree in political science from Fort Lewis College in Durango and a master's degree in public administration from the University of Colorado at Denver. His appointment was announced by Scottsdale City Manager Jim Thompson on February 14. He will start May 6.

Oro Valley has 12% of remaining land awaiting development

Earlier this month, town planner Milini Simms briefed the Oro Valley Planning and Zoning Commission on the status of the town's land use. Land use is an important feature of the general plan. Simms noted that there's approximately 12% of Oro Valley's land that is yet to be developed. Half of the land has already been planned, while the other half has not. Existing zoning on the available land will allow for about 1,400 single-family residential units and 1,600 multifamily residential units. In other words, Oro Valley is going to continue to grow.

Town plans temporary closures as Naranja Park nears completion

As the Naranja Park Expansion Project nears completion, the Town of Oro Valley provides this update on the progress of this transformative effort.

• March 4-5: Naranja Park will be completely closed to widen and pave the park’s main intersection. 
• Starting March 4: The park’s south entrance at Naranja Drive will be closed for 4-6 weeks for Musette Drive bridge and storm drain work. Access to the Archery Range will still be available. 
• March 6: The park’s new north entrance at Tangerine Road opens, becoming the sole access point through mid-April. 
• March 6 through mid-April: The northern entrance will be the exclusive access point to Naranja Park during this period. The southern entrance will re-open in mid-April.

These temporary closures are crucial to completing the Naranja Park Expansion successfully, adhering to schedule and budget, as the Town strives to deliver an enhanced park experience for the community. (Source: Town of Oro Valley Media Release)

Take the OVPathForward Community Survey Today and get involved in future events

OVPathforward is conducting an online survey on life in Oro Valley. "The BIG Community Survey includes questions about public safety, traffic, development, views, and more" Here's the link.  In addition, you can meet with the OVPathforward team and share you thoughts on the following dates and locations:

• February 25 - Oracle Crossings Plaza (near Sprouts) from 12PM - 2 PM 
• February 27 - Noble Hops from 11AM - 2PM 
• February 28 - Copper Creek HOA at 7PM 
• March 2 - Farmers Market at Steam Pump Ranch from 9AM - 1PM 
• March 9 - Plaza Escondida (near Trader Joes) from 12PM - 2PM

There's ample opportunity to get involved. So do take advantage of that. (Source: OVPathfoward email)

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Oro Valley's Four Phases of Residential Home Growth

 Click on the graphic to enlarge

Oro Valley Is Not Approaching "Buildout"

There has been for some time now the idea floated by town staff that Oro Valley is approaching "buildout." It is often referred to as some "dreaded event"; as if something dreadful will happen if the town stops growing. Understanding this, town council defined a strategic objective last February to "Develop a buildout analysis that projects short and long-term impacts to Town service levels and provides potential mitigation options." According to Town Manager Jacobs, that analysis will not be available until the winter of 2023.

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"Buildout" is a vague term

The town has not defined what it means when it says that Oro Valley is approaching buildout. We say this because the town has 20,300 acres of buildable land of its 27,000 acre size. As of last April, 10,900 acres were "built-out". 10,400 acres were "Vacant". That's 20,300 acres of buildable land. 

Certainly, a town that has almost half of its available building land designated as "vacant" is not approaching any building saturation point.  So, to what is the town referring when it says that Oro Valley is approaching buildout?

It is unplanned vacant land to which the town refers when it says that Oro Valley is reaching buildout...but that is is only 15% of total vacant land available for growth

85% of the 10,400 acres of vacant land have an approved plat or development plan. The remaining vacant land is designated by the town as "unplanned."  This land  is mostly located the periphery of the town [see panel]. 

We think that it is this land, the vacant "unplanned land," to which the town is referring with it says that town is reaching “buildout.” 

That is an unfair definition because it fails to recognize that other other 8.900 acres are either being built or will be built also.

Permitting activity remains strong... Lots of construction remains

By no means is the town approaching "buildout." Construction remains strong in Oro Valley and it will be such for along time. In November, for example,  "220 total permits were issued . . . compared to 160 permits issued in October. Year-to-date, 2,380 total permits have been issued since the beginning of the year compared to 2,290 issued during the same period in 2020." (Source: Town Manager Executive Report To Council, December 2021)

Town annexation strategy would increase available land for homes via the "Tangerine 880"

The town's annexation strategy will increase land for growth. The major source of a near team increase land for homes is the 880 acres of state land ("Tangerine South"and "Tangerine North"). That is a "near term target". This land is located on the Northwest tip of Oro Valley. It would extend Oro Valley's reach to Thornydale. 

The town vetted the Tangerine North annexation to the community in 2017-2018. It was met with resident opposition. Read one report on this here. Both the North and South Tangerine annexations remains open. If not heard by this council, it will certainly be heard by the next council.

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Addendum to Wednesday’s article, “Eliminate and ignore citizen participation…It’s in our nature.”

After studying the resolution in the June 7th council packet regarding the agenda item, “Consolidate the Planning and Zoning Commission and the Conceptual Design Review Board” it appears that:

The 7-member Conceptual Design Review Board (CDRB) is going to be abolished and the Arts Review Commission is going to take its place.

The responsibilities of the Planning and Zoning Commission will be markedly different, as follows:

(1) They will no longer coordinate the development review of Town land use plans. (No more citizen oversight).

(2) They will no longer be responsible for maintaining the adopted General Plan criteria. (No more citizen oversight to make sure that developments are consistent with the General Plan prior to going to Council for a vote).

(3) They will no longer consider all conditions listed as requirements in the Oro Valley Zoning Code for a given conditional use permit (CUP). They will no longer provide recommendations to the Town Council on proposed rezonings or conditional use permits. (No more citizen input on rezonings or CUP’s prior to going to Council for a vote).

(4) Their focus will no longer be limited primarily to land use issues, but will now include “detailed design consideration.” This task was previously performed by the 7-member CDRB.

It appears that most developer activity will now go directly to the Town Council with no citizen review or input beforehand.