Data Center View - December 16, 2025 - Active Infrastructure rejected in Chandler

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NEWS ROUNDUP

DEVELOPMENT: Active Infrastructure rejected in Chandler. The Chandler City Council unanimously rejected a rezoning request for a 422,000-square-foot AI data center proposed by Active Infrastructure, despite lobbying by former U.S. Sen. Kyrsten Sinema. Vice Mayor Christine Ellis said the project failed to show clear local benefits for Chandler, prioritizing community impact over national AI expansion. Active Infrastructure CEO Jeffrey Zygler argued the campus could attract advanced tech users, but residents raised concerns over water, power, and jobs, filing more than 200 comments against the plan.

DEVELOPMENT: Western Hospitality plans data center. After being denied rezoning for a data center near New Carlisle, Western Hospitality Partners plans to build a 10-building data center campus on 300 acres in South Bend, where the site is already zoned industrial and does not require rezoning or public hearings.

DEVELOPMENT: Blue Origin, SpaceX eye space AI. Jeff Bezos and Elon Musk are reportedly pursuing rival plans to deploy AI data centers in space. Bezos’ Blue Origin has been developing orbital AI data center technology for more than a year, while Musk’s SpaceX is planning upgraded Starlink satellites capable of carrying AI computing payloads. The concept aims to ease Earth’s growing energy strain from AI infrastructure, as data centers already consume a rising share of U.S. electricity. Will Marshall, co-founder of Planet Labs, said falling launch and satellite costs are bringing the long-discussed idea closer to reality.

DEVELOPMENT: Panattoni eyes SE Michigan data center. Panattoni Data Center Group is proposing a hyperscale data center on roughly 280 acres in Van Buren Township, Wayne County, near Belleville. Adam Kramer, who leads data center development for Panattoni, said the site is zoned to allow a data center by right and would likely generate less traffic than an industrial use.

READ: AI data center risks ahead.

DATA CENTER PROPERTY FOR SALE

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63,12 Acres | Price: $1,300,000 | Commercial Land | Zoning None

Price: $499,000 | 3.27 Acres | Zoning M-1 | Commercial Land

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