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City Manager Keene, Community Investment Director Dave McIntire, IT Director CJ Perry, Sustainability Director Nicole Antonopoulos, Water Services Director Lee Williams, and Interim Deputy City Manager Heidi Hansen provided a PowerPoint presentation that covered the following:
INTRODUCTION TO DATA CENTERS
BACKGROUND ON DATA CENTERS
ECONOMIC DEVELOPMENT PROCESS
TWO PATHS FORWARD
FIRST TYPE
SECOND TYPE
EXAMPLES OF INFORMATION SOUGHT
ECONOMIC DEVELOPMENT’S INTENTION
POTENTIAL IMPACTS OF DATA CENTERS
SUSTAINABILITY IMPACTS
ENERGY IMPACTS
AIR QUALITY AND EMISSIONS IMPACTS
EQUITY IMPACTS
NOISE IMPACTS
LAND DEGRADATION IMPACTS
WATER RELATED ENERGY IMPACTS
MORE ON WATER IMPACTS
OVERVIEW
WATER COMMISSION DECISION
DIRECT VS INDIRECT WATER USAGE
WHAT DO THEY LOOK LIKE?
HYPER-SCALE DATA CENTERS (1 MILLION SQ FT +)
AVERAGE DATA CENTERS (AI TRAINING WORKLOADS)
AVERAGE DATA CENTERS (COLLOCATION OR EDGE DATA CENTERS)
HOW BIG ARE THEY?
WHAT DEFINES A DATA CENTER?
POTENTIAL IMPACTS OF DATA CENTERS
ECONOMIC IMPACTS REVISITED – INDIRECT IMPACT
ECONOMIC IMPACTS REVISITED – DIRECT IMPACT
LEARNING FROM OTHERS
Councilmember House asked whether the city’s information gathering process would evaluate both community needs and community values, not just potential economic upside. Her concern was whether policy could require data centers to prioritize serving local needs rather than external demand such as preventing outside users like major streaming services from consuming capacity. Mr. McIntire responded that both factors would be considered: whether a data center improves services like business efficiency, healthcare, logistics, and communications, and whether it fits Flagstaff’s character and zoning values. He also noted that scale matters, suggesting very large facilities (e.g., 500,000–1,000,000 sq. ft.) would likely not fit, though smaller ones might be evaluated case-by-case, along with economic impacts like revenue to the city, county, and schools.
Councilmember House then asked whether Flagstaff has geographic or logistical advantages for data centers. Staff discussed that Flagstaff’s cooler climate could reduce cooling costs compared to Phoenix, but that Flagstaff is not uniquely required for data center placement. The typical drivers are proximity to population centers, latency needs, highway access, and power infrastructure. Arizona offers data center tax incentives, and Northern Arizona’s solar potential and infrastructure access could be attractive factors.
Councilmember Garcia suggested that the city may want to think beyond data centers specifically and instead consider broader categories like high water and energy use industries. He asked about water recapture, wastewater treatment impacts, and concerns raised in presentations that future data centers may rely heavily on liquid cooling. Staff responded that water and cooling systems do involve liquid circulation and potential discharge, which could require treatment coordination and possibly development agreements.
City Manager Joanne Keene shared that policy structure, planning and zoning outcomes, and regulatory questions would be addressed at the upcoming May 5, 2026, meeting.
Councilmember Aslan expressed appreciation for a presentation that helped clarify misconceptions and wished more of the public could see it to reset the tone of the community conversation around data centers. He emphasized that not all data centers are alike and suggested the city use clearer terminology to distinguish smaller-scale facilities, like server rooms or computational hubs, from large industrial data centers, so residents do not conflate very different impacts. He also noted emerging technologies, such as underwater data centers, to illustrate how quickly the industry is evolving.
Councilmember Aslan challenged the road analogy used in the presentation. He argued the comparison breaks down because roads are public goods that broadly distribute benefits, while data centers are privately controlled, profit-driven infrastructure. Data centers often create limited local employment while consuming significant resources, meaning their benefits are narrowly captured while impacts, like water and energy use, are born locally. He advocated for a water productivity policy framework. Instead of simply asking whether the city has enough water, he proposed evaluating whether a project delivers sufficient economic return per gallon of water used, factoring in jobs, tax revenue, and overall community benefit. Flagstaff may not yet be a prime target due to limited broadband capacity; it could become more attractive in the future. He urged policy development to guard against large, water-intensive facilities that generate few local jobs and export profits.
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Council Member Spence shared that he recently hosted a small listening session at a Dark Skies event in Heritage Square. It was a great way to have more direct community engagement and encouraged his colleagues to consider doing something similar.
Ms. Keene provided an update on the upcoming Public Safety Power Shutoff announced by APS due to high fire danger and forecasted 60 mph winds. She noted that outages could last 12–24 hours, with preparations underway including use of the Aquaplex as a Red Cross shelter and ongoing public updates.
Councilmember Aslan highlighted a community event at Lowell Observatory for viewing the Lyrid meteor shower.
Councilmember Garcia shared an update on a recent trip to Washington, D.C., where he joined Mayor Daggett, Councilmember Matthews, and city leadership to advocate for key Flagstaff projects. He described meetings with the Bureau of Reclamation, members of Congress, and federal departments. The discussions were productive and aligned with Flagstaff’s priorities and focused on securing final support to move projects forward. He also highlighted the strong teamwork and synergy among the delegation, noting their ability to collaboratively and effectively communicate the city’s needs.
Councilmember Matthews emphasized the importance of maintaining strong relationships with federal and state partners since cities cannot fund major projects alone and are impacted by external policies. She reiterated that the trip focused on critical priorities such as the Rio de Flag flood control project, Red Gap Ranch water supply, forest health, airport infrastructure, transportation, and housing. The trip was fast-paced and demanding but ultimately valuable and productive in advancing the city’s goals.
Vice Mayor Sweet highlighted local events including Palette to Palate, Water Professionals bowling date, and the Viola Award.
Ms. Keene reminded Council about the upcoming budget retreat and additional community events, the High Country Humane brunch, Miss Cleo’s Tea Party, and Drop-Off Day.
Assistant City Manager Shannon Anderson promoted “Go Orange Day,” led by the American Traffic Safety Services Association. She encouraged everyone to wear orange to raise awareness for roadway worker safety.
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