Tempe, AZ Data Centers & Crypto Mining: Crypto Mining Rules (2026)

Tempe's Zoning and Development Code does not carve out a separate ordinance for crypto mining, it folds the activity into the definition of a data center. Section 7-105 defines a data center as a facility housing computer systems and associated components, and expressly lists "crypto currency mining/processing" among the equipment types covered, alongside servers, GPUs and cloud computing hardware. Once a crypto mining operation meets that definition, it is regulated under Section 3-429, the code's dedicated data center standards. That section restricts data centers to the MU-ED (Mixed Use Employment District), GID (General Industrial District) and HID (Heavy Industrial District) zoning districts only, and requires approval of a use permit under Section 6-308 before the facility can be built or occupied.

Two siting rules apply directly to the physical footprint of a mining operation: the building housing the equipment cannot sit within 500 feet of the property line of any site with a residential use or residential zoning district, and any generators serving the facility must be enclosed in a building with ventilation designed to cut down on noise reaching neighboring properties. Applicants also face a substantive approval hurdle beyond the standard use permit criteria in Section 6-308(E): they must submit an economic impact study for review by the Economic Development Director (or designee) addressing the facility's effect on innovation hub or rail corridor job growth.

If the operation qualifies as an "extreme water use" facility, a water use plan must also be filed with the Public Works Department under Tempe City Code Section 33-142, since crypto mining rigs and their cooling systems can be heavy water and power draws. There is no outright ban and no city-specific moratorium language in the code text; the restriction operates entirely through the zoning district limitation, the 500-foot residential buffer, and the discretionary use permit and study requirements layered on top.