New water restrictions have slowed Phoenix housing developments. However, these restrictions don't apply to commercial developments in the same area.
Phoenix Mayor Kate Gallego discusses affordable housing, compact homelessness and water resources in her State of the City address on April 12, 2023.On the outskirts of metro Phoenix, some new housing developments won't get approved due to a lack of water, but in those same fast-growing areas, commercial development is moving forward unhindered.
Kinney said many local companies that are members of NAIOP told her they were getting worried calls from their investors about Arizona's perceived lack of water. However, she said she has not heard of anyone backing out of a deal because of water. Those investors and developers talked with local experts, like economic development professionals, about what the move actually means and where is affected, calming their fears.
Warehouses and distribution centers, which make up about 65% of the industrial buildings in the Phoenix market, usually only use water in bathrooms, fire sprinklers and landscaping. When Facebook parent company Meta announced its southeast Mesa data center near Elliot and Ellsworth roads in 2021, the company pledged to make it one of the most water-efficient data centers in the world. At the time, the project was estimated to use about 1,400 acre-feet of water per year, the equivalent of about 4,900 single-family homes.
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