The recent rejection of the proposed La Osa Energy Center in Pinal County, Arizona, is a timely reminder that digital infrastructure proponents must address community concerns before they will clear the land use entitlement stage. Vermaland proposed to construct its La Osa Energy Center south of Eloy, near the Greene Wash, which is part of the Santa Cruz Wash, on roughly 3,385 acres proposed for industrial zoning, planned area development treatment, and proposed open space. The concept began as a much larger campus, with up to 59 data center buildings, gas-fired generation, and battery storage, before being scaled back to 11 data center buildings, a 500 MW gas plant, battery energy storage, and total energy demand of up to 1 GW.
Opponents raised concerns about groundwater demand, existing aquifer stress, alleged subsidence and fissuring, power supply, air quality, noise, light, wildlife habitat, property values, and industrialization of desert land near Ironwood Forest National Monument. Those concerns persisted even after the developer proposed an 80% scale reduction, a 600-acre-foot annual freshwater cap, and commitments to carry energy infrastructure costs.
On August 26, 2026, the Pinal County Board of Supervisors voted 4-1 to reject the rezoning and related planned area development overlay, despite the Planning and Zoning Commission’s earlier recommendation of approval. Public reporting indicates that the denial followed unresolved concerns over water use, power adequacy, environmental and land-use compatibility, and the absence of data-center-specific zoning standards.
For data center developers in markets where water supply, power availability, and land-use compatibility are contested, a successful entitlement strategy starts early and treats community credibility as a core project parameter.



