Infrastructure & City Planning Weekly AI News

December 8 - December 16, 2025

## Infrastructure & City Planning Update: AI Data Center Rejected in Arizona

A significant development in how communities are planning for artificial intelligence infrastructure took place this week when the Chandler City Council in Arizona (United States) unanimously rejected a major AI data center project. On December 11, city leaders voted against a rezoning request that would have allowed a New York-based company called Active Infrastructure to build a 422,000-square-foot data center facility on a plot of land that once held an abandoned office building. This decision represents a rare victory for residents and community groups fighting to have a say in how AI technology develops in their neighborhoods.

The proposed facility was designed to house powerful computers that run artificial intelligence systems, and the developer said it could attract advanced technology companies to open offices nearby. According to the project plans, the site would have included five additional buildings for support staff and flexible use. However, the Chandler planning office recommended against the rezoning, citing concerns from the community about how data centers affect neighborhoods.

What made this particular story capture national attention was the involvement of former U.S. Senator Kyrsten Sinema, who publicly supported the project at two local meetings. Sinema spoke on behalf of Active Infrastructure and identified herself as the founder and co-chair of the AI Infrastructure Coalition, a group backed by technology giants like Microsoft, Meta, and Andreessen Horowitz, as well as energy companies like Exxon Mobil and NextEra. She told city officials that if Chandler didn't approve the project now, they would lose the opportunity to make their own decisions when federal preemption laws take effect.

The community's opposition was overwhelming and organized. More than 250 emails and over 200 written comments opposing the project were submitted to the city. During the city council meeting, residents packed the chambers and held signs reading "No More Data Centers". Vice Mayor Christine Ellis explained her no vote by saying she had met with Sinema and asked point-blank, "What's in it for Chandler?" Ellis made clear that without clear local benefits, she could not support the project.

Residents and city leaders raised several practical concerns about the data center. They worried about noise pollution, since data centers operate machinery constantly to keep computers cool. They were also concerned about water usage, as these facilities require significant amounts of water for cooling systems. Additionally, community members questioned whether the project would create enough jobs for local residents and whether it would increase power costs in the area.

Chandler had already established zoning rules in 2022 specifically to limit where data centers could be built, following earlier community concerns. The city already hosts 10 existing data centers, so residents felt they had already contributed enough to supporting this type of infrastructure. While Active Infrastructure claimed their cooling systems would minimize water usage and noise, the community remained unconvinced.

This moment in Chandler reflects a larger pattern happening across the United States. While the Trump administration is actively pushing states and cities to build more data centers to support AI development, local governments in cities like Phoenix and Tucson in Arizona have written new zoning rules for data centers. Officials in Oregon, Missouri, Virginia, Indiana, and other states have also rejected proposed data center projects.

The AI Infrastructure Coalition that Sinema chairs represents major technology and energy companies working together to advocate for building more AI infrastructure nationwide. However, the Chandler vote shows that these powerful interests face real resistance from communities concerned about how AI infrastructure affects their daily lives. A resident named Eric Runnestrand commented that community members showing up and speaking their concerns sends a powerful message to elected officials about what people actually want.

This story matters for infrastructure planning because it demonstrates that even as powerful technology companies and government agencies work to build AI systems, local communities retain the ability to shape how that development happens in their neighborhoods. The Chandler decision suggests that future AI infrastructure projects will likely face increased scrutiny from communities wanting to understand what benefits they will receive in exchange for the disruption and resource use that data centers bring.

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