In a sudden change of course, Denver-based land acquisition firm Tract has backed down from its ambitious $14 billion data center project in West Valley, after neighboring cities raised concerns over its fit within the community. Plans to transform roughly 1,000 acres in Maricopa County into one of the largest data center campuses in the Valley have been shelved, with Tract officially withdrawing its zoning applications.

The withdrawn proposal, originally filed last November, aimed to construct up to 30 buildings with a combined 5.6 million square feet of space near Yuma and Perryville roads. The project promised to significantly boost economic development, with projections of generating substantial tax revenue alongside up to 300 high-paying jobs. However, the sheer scale and perceived incompatibility with current land designations prompted pushback from local Goodyear and Buckeye officials, as reported by ABC15 News.

Concerns highlighted by city staff focused on the proposed building heights and potential issues regarding noise, as well as the impact on emergency resources. According to the Phoenix Business Journal, Buckeye and Goodyear had voiced their objections to Maricopa County, citing the project's encroachment on areas designated for residential use and potential disturbance to existing neighborhoods.

Efforts were made by Tract to adjust the plans, including reducing the height of the proposed data centers and increasing the setbacks from the nearby communities. However, these revised applications were not enough to keep the project afloat, and Tract chose to withdraw completely about a month later. Maricopa County confirmed the applications have been closed, with a spokesperson stating, "No further action will be taken by the county," effectively putting an end to the project's current trajectory.

While Tract did not respond to requests for comment on the matter, previous statements by the company's chief investment officer, Graham Williams, described the vision of a "high-value" project that would contribute greatly to the local economy. Despite the setback in Arizona, Tract, which is supported by funding from Columbia Capital and the van Rooyen Family Office, continues to pursue data center developments in other regions, including Nevada and Utah, according to their website.