Casa Grande, Arizona approves a permit for a 954-acre data center campus planned to run on on-site gas power, per local reports
Casa Grande's Planning and Zoning Commission approved a conditional use permit for the Grande Valley Industrial Data Center Campus on October 1, 2026, according to local reports. The 954-acre campus plans on-site natural gas generation using Bloom Energy fuel cells plus battery storage, and the developer says it will not connect to the grid. The permit caps water use at 300 acre-feet a year. No MW figure has been reported. [Source 1] [Source 2]
All news & analysisDevelopment & PowerCasa Grande, Pinal County, Arizona (near Maricopa to Casa Grande Highway and Montgomery Road)Approved (conditional use permit granted by the Casa Grande Planning and Zoning Commission on October 1, 2026, per local reports). Other permits and construction status not reported.
Disclosed terms
Approval
Conditional use permit approved by the Planning and Zoning Commission on October 1, 2026, per local reports [2]
On-site natural gas fuel cells and batteries; developer says no grid connection [1]
Water cap
300 acre-feet a year (about 97 million gallons) for cooling and on-site generation [1]
Applicant
Colliers Energy on behalf of LKY Development Company, per KJZZ [3]
The disclosure and our analysis
Evidence dates
Evidence: KJZZ reports dated October 1 and October 2, 2026; Casa Grande Dispatch (PinalCentral) report dated October 2, 2026. The commission meeting was held Thursday, October 1, 2026.
What local reports say
Casa Grande's Planning and Zoning Commission approved a conditional use permit for the Grande Valley Industrial Data Center Campus at its October 1, 2026 meeting, according to KJZZ and the Casa Grande Dispatch. KJZZ reported the vote as 6 to 1. The Dispatch reported it as 5 to 1. We could not confirm the count from city records. [Source 1] [Source 2]
KJZZ reports the application came from Colliers Energy on behalf of LKY Development Company. The site covers 954 acres southwest of the Maricopa to Casa Grande Highway near Montgomery Road, about 8 miles from the city center. The Dispatch describes it as southwest and southeast of the Maricopa to Casa Grande Highway and Montgomery Road intersection. [Source 2] [Source 3]
The campus plans on-site natural gas generation and battery energy storage. A Bloom Energy representative said the project would be the company's first solid oxide fuel cell installation in Arizona. The developer says the campus will not connect to the grid, to avoid shifting costs onto other customers. [Source 1] [Source 2]
The permit limits the site to 300 acre-feet of water a year, about 97 million gallons, covering both server cooling and on-site power generation. KJZZ reports there is no cap on energy use, and the application does not disclose a cap on the number of data center buildings. [Source 1] [Source 3]
This was the first data center to go through Casa Grande's conditional use permit process. The city made data centers in industrial zones a conditional use in 2025, so they can no longer be built by right. KJZZ reports that the commission's decision is final under current rules. [Source 1] [Source 3]
Buyer analysis
This is our analysis.
**A use permit is one approval.** It is not a building permit, an air permit for on-site generation or a gas supply contract. None of the reviewed reports gives a MW figure, a phase schedule or a construction start.
**Off-grid power changes the questions.** A campus that runs on its own gas fuel cells avoids a utility interconnection queue but depends on gas supply and on-site equipment for every megawatt. Buyers evaluating capacity on a site like this should ask what the backup is if generation trips, how fuel supply is contracted, and how the power cost is passed through.
**Water caps are becoming permit terms.** A fixed acre-foot limit that covers both cooling and generation shapes what cooling designs and densities the campus can support. Buyers in the Phoenix area should ask providers whether any water limit applies to their site and how it affects future expansion.
**No tenant or operator has been named.** The reports identify the applicant and its representatives, not an end user. This is not available capacity.
What remains unknown
The reviewed reports do not disclose a MW figure or its basis, the number of buildings or phases, the end user or operator, the gas supplier, the construction schedule, air permit status or the permit's full list of conditions. Local reports differ on the vote count. We did not find the city's staff report, agenda packet or minutes for the October 1 meeting online.
The Michigan Public Service Commission approved DTE Electric's special contracts with Google on October 1, 2026 for a data center in Van Buren Township, Wayne County. The 20-year supply agreement requires Google to pay for at least 80% of contracted demand, and a separate agreement has Google pay for up to 1,600 MW of renewable energy and 480 MW of battery storage that DTE will build and own. DTE expects service to begin in December 2027 and reach maximum load by December 2028. [Source 1]
Van Buren Township, Wayne County, Michigan · Approved (MPSC approved the DTE and Google special contracts on October 1, 2026, with customer protection conditions). Service expected to begin December 2027, per DTE. No construction or energization status disclosed in the reviewed sources.
Enerflex said on October 1, 2026 that it has been contracted to design, engineer, fabricate and assemble approximately 450 MW of behind-the-meter natural gas power generation units for an unnamed North American data center developer. Deliveries are scheduled to start in 2027 and finish in 2028. [Source 1]
Not disclosed (North America) · Announced (equipment contract awarded as of October 1, 2026; deliveries scheduled to start in 2027 and finish in 2028). No site, customer or power purchase terms disclosed.
Kline Township supervisors in Schuylkill County, Pennsylvania unanimously approved Amazon's proposed data center plan at a special meeting on September 30, 2026, according to local reports. The roughly 350-acre site near Route 309 and Interstate 81 would hold about 2 million square feet of data center buildings. The approval carries a nine-page list of conditions, and state approvals remain. [Source 1] [Source 2]
Kline Township, Schuylkill County, Pennsylvania · Approved (township supervisors approved the plan with conditions on September 30, 2026, per local reports). Zoning permits and state approvals remain pending. No construction, power or capacity status disclosed.
