CASA GRANDE, AZ – The City of Casa Grande Planning and Zoning Commission approved a Conditional Use Permit (CUP) for the proposed Grande Valley Data Center campus at its October 1 meeting following a public hearing and consideration of public comment.

The proposed campus would be located on approximately 954 acres generally south of Maricopa-Casa Grande Highway, west of Montgomery Road and east of the Midway Road alignment. The property is zoned Industrial (I-2), where data centers are an allowable use subject to approval of a Conditional Use Permit. No specific end user or data center operator has been identified at this time.

The proposed development would include data center facilities along with onsite power generation, accessory battery energy storage, and related electrical and utility infrastructure.

The primary power supply is proposed to be generated onsite using the adjacent natural gas infrastructure. The project also proposes closed-loop cooling and power-generation systems designed to limit water demand. The project is sited within the Certificate of Convenience and Necessity (CCN) of Global Water Resources, who would be the identified water provider to serve the development.

Conditional Use Permit Requirements

The City Council adopted regulations requiring future data center projects in the Industrial (I-2) zoning district to obtain a Conditional Use Permit. The requirement was established as the City evaluated the appropriate locations and regulatory framework for data center development as interest in the industry increased throughout Arizona in 2024 and 2025.

For the Grande Valley Data Center campus, the approved CUP establishes enforceable requirements addressing:

• Water use limitations and annual public reporting
• On-site power generation, emission and regulatory compliance, and interconnection requirements, and electrical demand
• Noise mitigation, including required studies and post-operation verification
• Compliance reporting
• Fire protection and emergency response
• Battery energy storage and uninterruptible power supply (UPS) systems
• Hazardous material and fuel storage

The CUP allows for a phased development of the data center campus and associated onsite electrical generation, utility distribution and battery energy storage infrastructure.

Additional Development Review Required

Approval of the Conditional Use Permit does not authorize construction of the proposed campus. Any future development on the property must complete all applicable development review and permitting processes and comply with federal, state and local requirements.

Those requirements may include building, engineering, fire, utility, environmental and other applicable reviews and approvals before construction can begin.

Community benefit commitments will be discussed and evaluated with the end-user negotiated as part of a development and permitting process.

The project is anticipated to generate significant property and sales tax revenues for the community, county and local school districts, which could support future investments in roads, parks, public safety and other public infrastructure.

Residents can review information about the proposed project, including the Planning and Zoning Commission agenda packet, on the Agendas, Minutes & Public Notices page.