Consideration and Adoption of Resolution No. 2026-15 and Ordinance No. 2026-10:  A Resolution of the City Council of the City of Flagstaff, Coconino County, Arizona, declaring as a public record that certain document filed with the City Clerk, entitled "PZ-26-00018  - Data Centers" and an Ordinance of the City Council of the City of Flagstaff, Coconino County, Arizona, amending the Flagstaff City Code, Title 10, Flagstaff Zoning Code.
 

Staff requests to continue the Public Hearing until May 5, 2026 to allow more time for consideration. 

There are no anticipated financial impacts affiliated with the propoposed Zoning Code Text Amendment.

There are no anticipated policy impacts affiliated with the proposed Zoning Code Text Amendment.

There has not been a previous City Council decision on this ordinance.

The City Council may adopt, modify, or deny the proposed amendment.

The purpose of the proposed amendment is to address community concerns in relation to Data Center land uses and  ensure that appropriate mitigation measures are provided for a land use that is already permitted under the general category of Heavy General Industrial with specific use standards.  Based on feedback received at the Planning & Zoning Work Session on March 11, 2026, staff has prepared two drafts of the proposed amendment.  Proposal #1 includes adding a specific land use category called Data Center with specific use standards as described below:
 

• Chapter 10-40: Specific to Zones, Division 10-40.30: Non-Transect Zones, Section 10-40.30.050: Industrial Zones, Table 10-40.30.050. B.: Industrial Zones – Allowed Uses – is amended to add Data Center as a primary land use in the Heavy Industrial (HI) and Heavy Industrial Open (HI-O) zones with the issuance of a Conditional Use Permit.
• Chapter 10-40: Specific to Zones, Division 10-40.60: Specific to Uses – is amended to add Section 10-40.60.145: Data Center specific use standards.

General Requirements.

1. Development Sites shall be designed in accordance with Division 10-30.60: Site Planning Design Standards.
2. Buildings shall be designed to reduce perceived mass through architectural articulation, variation in façade materials, or modulation of building planes as required in Division 10-50.20: Architectural Design Standards.
3. Mechanical, electrical, and cooling equipment shall be fully enclosed or screened from view from rights-of-ways and adjacent properties.
4. Outdoor storage of equipment or materials shall be prohibited, except during permitted construction or maintenance activities.
5. A minimum 200-foot setback should be provided from a property line abutting a residential use or residential zoning district. 
6. Perimeter fencing, if provided, shall be decorative and integrated with site landscaping.
7. Noise generated by all on-site operations, including cooling equipment and generators, shall not exceed a maximum outdoor dBA of 60 dBA / 70 dBC during the daytime (7 a.m. to 10 p.m.) and 50 dBA / 60 dBC during the nighttime (10 p.m. to 7 a.m.) at the property line.  Sound attenuation walls shall be provided on any property line abutting a residential use or residential zoning district.
8. Generator and generator use must be in compliance with all applicable state and federal regulations.  If a Data Center uses diesel generators, only tier IV or newer generators are permitted. Backup generators shall be used solely for emergency operations, testing, and maintenance, and shall not serve as a primary power source.  Generator testing shall be limited to daytime hours and scheduled to minimize impacts on adjacent uses.
9. Fuel storage and handling shall comply with all applicable fire, building, and environmental regulations.
10.  All mechanical cooling systems shall utilize a closed-loop configuration.
11. Cooling towers, chillers, and related equipment shall be screened and designed to minimize noise, plume visibility, and visual impacts.
12. Hazardous materials shall be limited to those necessary for operation and shall be stored and handled in accordance with applicable regulations.
13. Data centers shall not emit smoke, dust, odors, or vibration detectable beyond the property boundary, except during emergency generator operation.
14. Data Centers that have ceased operations for a continuous period of 12 months shall be considered abandoned and must be decommissioned.  Within 90 days of the end of operations, the owner or operator shall submit a decommissioning plan to the City for review and approval.  Decommissioning must be completed with 12 months of abandonment and shall include
    1. Removal of all equipment, structures, and above-ground facilities; and
    2. Proper disposal of any hazardous materials in accordance with applicable state and federal regulations; and
    3. Restoration of the site to a safe, stable condition, including grading and seeding of disturbed areas.

Conditional Use Permit Application Requirements.

1. A baseline noise study establishing existing noise levels prior to project construction including a Low-Frequency Noise Impact Report prepared by a licensed acoustical engineer including a noise contour exhibit depicting the anticipated noise levels (including low frequency noise) to be generated by the Data Center.
2. An assessment of current and future energy needs for the site.
3. Identification of the energy source(s) for the proposed Data Center and documentation from the utility provider(s) affirming sufficient power exists to serve the site. The applicant must include an estimate of annual energy consumption over all phases of the project, expected peak demand, and the percentage of energy demands that will be met by carbon-free energy, during each year of project operations. The use of 100% renewable energy for all data center energy needs is preferred and is attainable through methods including but not limited to on-site generation, virtual power purchase agreements, and purchasing RECs through electric utility providers.
4. An estimate of peak day and annual water consumption and wastewater discharge for the site.
5. Identification of the source of water for the proposed Data Center and documentation from the water utility provider affirming sufficient water resources to serve the Data Center. A Water and Sewer Impact Analysis (WSIA) must be approved by the Water Services Division.  The use of 100% non-potable and/or recycled water for all data center needs is preferred.
6. Identification and concentration of constituents in the wastewater stream that may have negative effects on the Publicly Owned Treatment Facility.
7. A narrative that describes how the proposed Data Center will comply with each of the requirements of this section.

• Chapter 10-80: Definitions, Division 10-80.20: Definition of Specialized Terms, Phrases, and Building Functions, Section 10-80.20.040: Definitions “D” – to add Data Center definition.

Data Center:  A facility or portion of a building used to house computer systems, servers, and associated infrastructure for the storage, processing, management, or distribution of digital data. Data centers may include equipment for power distribution, backup power generation, cooling, fire suppression, and security.

Exceptions.   Data Centers that are ancillary to another primary land use are permitted by right in all zones if they occupy no more than ten percent of the building footprint, are used to serve the enterprise functions of the primary land use and are not housed in a separate stand-alone structure on a parcel.

Proposal #2 amends existing land use definitions and provides a new definition of Data Center to prohibit Data Centers as a primary land use in the City of Flagstaff as described below:

• Chapter 10-80: Definitions, Division 10-80.20: Definition of Specialized Terms, Phrases, and Building Functions, Section 10-80.20.040: Definitions “D” – to add Data Center definition.

Data Center:  A facility or portion of a building used to house computer systems, servers, and associated infrastructure for the storage, processing, management, or distribution of digital data. Data centers may include equipment for power distribution, backup power generation, cooling, fire suppression, and security.  Data Centers as a primary use are not permitted in the City of Flagstaff.  Data Centers that are ancillary to another primary land use are permitted by right in all zones if they occupy no more than ten percent of the building footprint, are used to serve the enterprise functions of the primary land use and are not housed in a separate stand-alone structure on a parcel.

• Chapter 10-80: Definitions, Division 10-80.20: Definition of Specialized Terms, Phrases, and Building Functions, Section 10-80.20.090: Definitions “I”, Section 10-80.20.160: Definitions “P”, Section 10-80.20.180: Definitions “R” – to exclude Data Centers from the Heavy General Industrial, Light General Industrial, Public Facility, and Research and Development definitions.

A Zoning Code Text Amendment shall be evaluated based on the following findings:
A.    Finding #1:
The proposed amendment is consistent with and conforms to the objectives and policies of the General Plan and any applicable specific plan;
Flagstaff Regional Plan 2030
Goal E&C.2. Achieve carbon neutrality for the Flagstaff community by 2030.
Policy E&C.2.1. Encourage the reduction of all energy and material consumption.
Policy E&C.2.2. Promote investments that create a more connected and efficient community, decrease emissions from transportation and building energy, and strengthen climate resiliency.
Policy E&C.2.3. Review and revise existing regulations, standards, and plans (codes, ordinances, etc.) to reduce the community’s vulnerability to climate change impacts and reduce the disproportionate impacts on vulnerable communities.
Goal E&C.8. Maintain areas of natural quiet and reduce noise pollution.
Policy E&C.8.1. Establish location-appropriate sound management tools with measurable criteria.
Policy E&C.8.2. Evaluate land uses and transportation proposals for their potential noise impacts.
Goal WR.3. Satisfy current and future human water demands and the needs of the natural environment through sustainable and renewable water resources and strategic conservation measures.
Policy WR.3.1. Work together with regional partners to address regional human and environmental water needs.
Policy WR.3.2. Favor low-water consuming businesses and industries over water intensive uses.
Policy WR.3.3. Integrate sound water conservation and reuse systems into new and updated public facilities.
Policy WR.3.4. Use reclaimed water and rainwater harvesting wherever appropriate and practical.
Goal E.1. Increase energy efficiency.
Policy E.1.4. Promote cost-effective, energy-efficient technologies and design in all new and retrofit buildings for residential, commercial, and industrial projects.
Policy E.1.6. Develop land use regulations promoting land use patterns that increase energy efficiency.
Policy E.1.7. Support policies and programming that reduce electricity, natural gas, and water consumption in order to conserve natural resources and reduce financial costs.
Policy E.1.8. Incorporate alternative energy conservation and renewable energy systems in applicable codes.
Policy E.1.9. Develop standards and guidelines to guide builders, architects, and developers toward optimal building, water use, and energy performance.
Goal E.2. Expand production and use of renewable energy.
Policy E.2.4. Encourage small-scale renewable energy production and use on the local level on appropriate residential, commercial, and industrial parcels.
Goal CC.4. Design and develop all projects to be contextually sensitive, to enhance a positive image and identity for the region.
Goal LU.16. Establish heavy industrial areas that provide for the manufacturing of goods, flexible space, and intermodal facilities that are well maintained, attractive and compatible with adjoining nonindustrial uses.
Policy LU.16.5. Consider all health impacts on the community in the design of new industrial uses, such as wastewater treatment, traffic safety, noise, and other impacts.
B.    Finding #2
The proposed amendment will not be detrimental to the public interest, health, safety, convenience, or welfare of the City;
The amendment provisions are not anticipated to be detrimental to the public interest, health, safety, convenience, or welfare of the City.  The proposed Data Center land use is limited currently to the Heavy Industrial and Heavy Industrial Open zones with the oversight of a Conditional Use Permit.   Additionally, specific use standards are created for the purposes of offsetting any potential negative impacts.  The second proposal would specifically exclude the Data Center land use.
C.    Finding #3
The proposed amendment is internally consistent with other applicable provisions of this Zoning Code.
The amendments are internally consistent, utilizes the existing format, and does not conflict with other Zoning Code provisions. The amendments maintain the Zoning Code’s purpose as a comprehensive contemporary set of land uses and requirements that are straightforward, usable, and easily understood.
 

Achieve a well-maintained community through comprehensive & equitable code compliance, & development is compatible with community values.

Flagstaff Regional Plan 2030
Goal E&C.2. Achieve carbon neutrality for the Flagstaff community by 2030.
Policy E&C.2.1. Encourage the reduction of all energy and material consumption.
Policy E&C.2.2. Promote investments that create a more connected and efficient community, decrease emissions from transportation and building energy, and strengthen climate resiliency.
Policy E&C.2.3. Review and revise existing regulations, standards, and plans (codes, ordinances, etc.) to reduce the community’s vulnerability to climate change impacts and reduce the disproportionate impacts on vulnerable communities.
Goal E&C.8. Maintain areas of natural quiet and reduce noise pollution.
Policy E&C.8.1. Establish location-appropriate sound management tools with measurable criteria.
Policy E&C.8.2. Evaluate land uses and transportation proposals for their potential noise impacts.
Goal WR.3. Satisfy current and future human water demands and the needs of the natural environment through sustainable and renewable water resources and strategic conservation measures.
Policy WR.3.1. Work together with regional partners to address regional human and environmental water needs.
Policy WR.3.2. Favor low-water consuming businesses and industries over water intensive uses.
Policy WR.3.3. Integrate sound water conservation and reuse systems into new and updated public facilities.
Policy WR.3.4. Use reclaimed water and rainwater harvesting wherever appropriate and practical.
Goal E.1. Increase energy efficiency.
Policy E.1.4. Promote cost-effective, energy-efficient technologies and design in all new and retrofit buildings for residential, commercial, and industrial projects.
Policy E.1.6. Develop land use regulations promoting land use patterns that increase energy efficiency.
Policy E.1.7. Support policies and programming that reduce electricity, natural gas, and water consumption in order to conserve natural resources and reduce financial costs.
Policy E.1.8. Incorporate alternative energy conservation and renewable energy systems in applicable codes.
Policy E.1.9. Develop standards and guidelines to guide builders, architects, and developers toward optimal building, water use, and energy performance.
Goal E.2. Expand production and use of renewable energy.
Policy E.2.4. Encourage small-scale renewable energy production and use on the local level on appropriate residential, commercial, and industrial parcels.
Goal CC.4. Design and develop all projects to be contextually sensitive, to enhance a positive image and identity for the region.
Goal LU.16. Establish heavy industrial areas that provide for the manufacturing of goods, flexible space, and intermodal facilities that are well maintained, attractive and compatible with adjoining nonindustrial uses.
Policy LU.16.5. Consider all health impacts on the community in the design of new industrial uses, such as wastewater treatment, traffic safety, noise, and other impacts.

Encourage sustainable consumption.

This amendment has no connection to the 10-Year Housing Plan.