Pinal County Supervisors Deny Development Proposal for La Osa Energy Center
In a significant decision, Pinal County supervisors have turned down the proposed La Osa Energy Center near Eloy, which was set to be one of Arizona’s largest data centers. The ambitious project by developer Vermaland included plans for 11 data center buildings, a 500-megawatt natural gas plant, and battery energy storage systems capable of meeting the energy needs of a large city.
The decision to reject the project comes despite Vermaland’s concessions to reduce the scale by 80%, impose self-regulated water usage limits, and cover all energy costs.
Robin Davis, a resident of Hidden Valley, expressed skepticism about the developers’ reduction in project scale, suggesting it was a negotiation tactic. “Ask for more than you want and settle for what you really wanted,” she commented.
In the time between May’s public hearing and the recent vote, Vermaland introduced 22 new conditions, including a restriction on fresh water usage to 600 acre-feet within the data center and natural gas plant — approximately 200 million gallons of water. The developer also mentioned the possibility of offsetting this with effluent water purchases, though no firm commitments were made.
The water supply was to be sourced from the Central Arizona Irrigation and Drainage District, with assurances from the district’s general manager about the Eloy sub-basin’s capacity to meet the site’s demands. However, Mary Eileen Flanagan, a local resident, raised concerns about existing water supply issues, citing instances of wells running dry and significant costs to drill deeper.
Energy supply for the project was another point of contention. Vermaland had secured 500 megawatts of natural gas but needed an additional 500 megawatts. Robert Clang from Vermaland suggested potential sources like nearby solar facilities or the Palo Verde nuclear station, which is over 100 miles away. Supervisor Jeffrey McClure highlighted the challenge, noting that much of the solar power is already allocated elsewhere.
The La Osa Energy Center proposal had been under scrutiny since last September, starting with a comprehensive plan that initially included 59 data center buildings requiring 3 gigawatts of energy. Karen Mooney from the Planning and Zoning Commission indicated that earlier submissions contained inadequate and inaccurate data regarding jobs and economic impact.
The rejection has led residents like Mark Seidel from Florence to call for more stringent guidelines for future developments. Seidel expressed concerns about incomplete proposals and unenforceable stipulations, seeking a county code that better addresses data center specifics.
Ultimately, the supervisors voted 4-1 against the rezoning request and development plans for La Osa. Supervisor Stephen Miller, a vocal proponent of property rights and free market principles, questioned the opposition, suggesting that data centers are essential for national defense.
Currently, Pinal County’s zoning code lacks specific definitions or development requirements for data centers, and the initial stipulations addressed only basic landscaping and setback needs. All water usage restrictions and energy cost measures were proposed voluntarily by Vermaland.
