Ahwatukee residents push back on proposed 38-acre Menlo Digital data center

Published July 9, 2026 9:03 PM MST

A proposed data center facility in Ahwatukee is facing opposition from nearby residents who say they are concerned about how the project could impact their neighborhood and quality of life.

Local perspective:

Ana Marshall, who has lived in her Ahwatukee home since 2017, and the city for 20 years, says she was surprised to learn a data center could be built directly behind her property.

"What is in it for us?" Marshall said. "Would you like to buy a house 150 feet away from a data center?"

Marshall says she is concerned about the potential impacts of the development.

"What it brings is noise pollution and air pollution," Marshall said.

What we know:

According to Menlo Digital's website, the proposed 38-acre campus would include five data center buildings at one million square feet, and a dedicated onsite electrical substation. The company says, according to information on its website, the campus would be capable of providing more than 257 megawatts of utility power and 180 megawatts of critical IT load.

What they're saying:

In a statement to FOX 10, SRP says the developer would pay the full upfront cost of the infrastructure needed for the project. SRP also says rates for other customers will not increase because of the development.

The backstory:

Last week, the Phoenix City Council approved removing existing drainage and waterline easements on the property, a step that helps prepare the site for future development.

Big picture view:

The project comes as Phoenix continues to see growth in the data center industry. Phoenix Mayor Kate Gallego said the region has become a major hub for these facilities.

"The amount of data centers in this community makes us one of the epicenters in the world," Gallego said during the July 1 meeting. "The greater Phoenix area has one of the highest concentration of data centers anywhere."

Dig deeper:

Residents say their concerns include possible heat, noise and air quality impacts. Craig Evans with the Ahwatukee Community Alliance says the group is not opposed to data centers but questions whether a facility of this size belongs next to residential neighborhoods.

"Five imposing structures, tightly packed that nobody can get in and out of, not going to have traffic flowing through it," Evans said. "It's not a part of the community. It's a tumor on the community."

What's next:

Menlo Digital's website shows that the project’s design and engineering phase is complete, and it is now working to secure the necessary permits. 

Residents say they want the city to reconsider the property’s zoning before the project moves forward. Evans says residents expected commercial development on the property but believe the proposed facility is different in scale. Marshall says she wants residents to have a greater role in the process.

"We didn’t have a proper zoning meeting," Marshall said. "So my goal is to have a zoning meeting and to have the community involved and let the community decide."

The Source: Information in this report was gathered from Ana Marshall, Menlo Digital, SRP, Mayor Kate Gallego, Craig Evans with the Ahwatukee Community Alliance, and the Phoenix City Council.

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