Vintage Partners has scrapped plans for a data center in Laveen, Phoenix, Arizona.

The real estate developer will instead build a mixed-use project on the 63-acre site, including commercial, retail, restaurant, and multifamily residential space.

Vintage has faced struggles with local regulations and power availability and changed course at the city of Phoenix's request, despite already beginning initial infrastructure work, reports the Phoenix Business Journal.

The company has reportedly spent a year and a half building a data center campus at the site and had secured city approval. Vintage partner Walter Crutchfield told the Phoenix Business Journal that the site was “almost ready to switch on.”

The land parcel, located at the southwest corner of Lower Buckeye Road and the Loop 202, features existing transmission lines and an electrical substation.

Phoenix has clamped down on data centers over the past year or so. Just over a year ago the city voted for more regulation on data center growth, citing concerns over land and power demand. This followed calls from Phoenix’s mayor, Kate Gallego, to end tax incentives for data centers. The regulations were adopted on July 2.

According to the Phoenix Business Journal, quoting Crutchfield, these new regulations, along with changes to the process for those waiting in line for power, meant that Vintage was now responsible for upgrades to the power grid as part of a user “cluster.”

The company filed for compensation for the property's loss in value, but the city asked it to drop the claim and scrap plans for the data center.