Arizona Board Approves $25 Billion AI Data Center Project Amid Local Opposition
The Maricopa County Board of Supervisors unanimously approved an amendment in early December for the industrial rezoning of a 2,000-acre property at Hassayampa Ranch, 50 miles west of Phoenix. This decision greenlights a massive AI data center project, estimated to cost up to $25 billion and require 1.5 gigawatts of power. Developer Anita Verma-Lallian, backed by investors including Chamath Palihapitiya, acquired the land for $51 million in May 2025, despite hundreds of local residents signing petitions opposing the development.
In early December, the Maricopa County Board of Supervisors unanimously approved an amendment allowing for the industrial rezoning of a 2,000-acre property at Hassayampa Ranch, located 50 miles west of Phoenix. The decision enables the development of a significant AI data center project in an area previously characterized by its tranquil desert landscape and clear skies.
Developer Anita Verma-Lallian purchased the tract of desert for $51 million in May 2025, with support from tech investors including billionaire venture capitalist Chamath Palihapitiya. The project aims to establish a new tech hub featuring rows of humming, energy- and water-hungry GPU racks in gigantic AI data centers. Verma-Lallian anticipates attracting major cloud providers or "hyperscalers" such as Meta, Google, or OpenAI, noting interest from six to eight potential tenants.
The proposed data center will include large buildings filled with GPU server racks and require continuous cooling systems. It is projected to consume 1.5 gigawatts of power, an amount equivalent to the electricity needs of over a million homes. The estimated construction cost for this extensive project is up to $25 billion, according to statements from Verma-Lallian and Palihapitiya.
The unanimous vote by the Board of Supervisors proceeded despite hundreds of local residents having signed petitions opposing the project, citing concerns about its impact on the serene environment. District 4 Supervisor Debbie Lesko, whose district includes Tonopah, was among those who voted for the approval.
This development at Hassayampa Ranch reflects a broader national trend where large-scale data center projects are transforming landscapes, straining energy grids, and affecting water tables. These facilities provide the essential computing power for the AI boom and are central to the U.S. effort to lead in the artificial intelligence sector. Major companies like Alphabet, Amazon, Meta, OpenAI, and Anthropic are collectively investing hundreds of billions annually to expand their AI infrastructure, with data center equipment and infrastructure spending potentially reaching a trillion dollars per year by 2030. According to Fortune, these projects often lead to disputes between developers, environmentalists, and rural communities.
