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  • Why Data Centers Love Gas, Halo Vista Rises in Phoenix, ADUs Go Mainstream, India’s Bharat Future City

Why Data Centers Love Gas, Halo Vista Rises in Phoenix, ADUs Go Mainstream, India’s Bharat Future City

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Editorial Staff
April 06, 2026

 

Here’s our latest roundup of the big news and trends shaping the future of cities and urban development.

You Should Know

  • History’s biggest census has begun. India has launched a $1B effort to count 1.4 billion people and, for the first time since 1931, to include detailed caste data.

  • Brent crude oil has climbed above $110 per barrel, reaching its highest level in roughly four years. Some economists warn that a move toward $130 could push the U.S. economy into a recession.

  • Maine is poised to be the first state to ban data centers (at least until Dec. 2027). The state’s House passed a bill to freeze large data center construction. The Senate and governor are expected to support the freeze.

  • Canada recently reported its first annual population decline on record.

Worth Watching

The Data Center Boom Runs on Natural Gas

The scale of investment flowing into AI data centers is unprecedented—and so is the energy required to run them.

Across the U.S., a new generation of data center projects is being built with power systems that rival regional grids. In Louisiana, Meta’s $27 billion “Hyperion” campus is paired with ten natural gas plants expected to generate roughly 7.5 gigawatts of electricity—more than the entire power capacity of South Dakota. In West Texas, Microsoft is working with Chevron and Engine No. 1 on a $7 billion gas-powered data center hub that could scale to 5 gigawatts. And in Texas, Fermi America’s proposed “HyperGrid” campus is targeting an even larger 11-gigawatt private energy system.

A clear pattern is emerging: natural gas is becoming the default foundation for powering AI infrastructure.

The reason is not just cost—it is speed. Grid interconnection has become a major bottleneck, with wait times in some regions stretching up to five years. That timeline is incompatible with the pace of AI investment, where companies are deploying tens of billions of dollars and need capacity online quickly. Natural gas offers a workaround through on-site, “behind-the-meter” generation, allowing developers to bypass the grid and control their own timelines.

It also aligns with the technical demands of AI. Training and running large models requires continuous, high-intensity computing with no interruptions. Natural gas provides constant, dispatchable power at scale—something renewables alone cannot yet deliver. While solar, wind, and battery storage are part of long-term strategies, their variability makes them difficult to rely on for core operations today.

This shift is influencing geography as well. Development is clustering in gas-rich states like Texas, Louisiana, Oklahoma, and New Mexico, where pipeline infrastructure can support large-scale fuel delivery.

But scaling natural gas is not frictionless. Turbine supply chains are tightening, with long lead times and rising costs. Developers are increasingly turning to modular systems, aeroderivative turbines, and even mobile generators to bridge near-term gaps—solutions that often come with lower efficiency and higher emissions.

The environmental implications are significant. Large gas-powered data centers can emit millions of tons of greenhouse gases annually, and total emissions are rising alongside AI expansion—even as companies maintain clean energy commitments. Methane leakage across the supply chain further complicates the picture.

There are also structural risks. Heavy reliance on gas introduces exposure to price volatility and supply constraints, particularly during peak demand periods. And if AI growth slows, the industry could be left with excess power capacity tied to long-lived fossil fuel infrastructure.

Natural gas is often framed as a bridge to cleaner energy. That transition, however, is far from guaranteed. Companies are investing heavily in gas infrastructure designed to operate for decades. Pipelines, turbines, and on-site generation systems are long-lived assets. Once built, they create a strong economic incentive to keep using them.

Halo Vista: A $7B City Rises Next to a $165B Semiconductor Hub

What do you build next to a semiconductor facility that represents the largest foreign direct investment in U.S. history? In north Phoenix, the answer is a $7 billion “city within a city” designed to support and expand one of the most important industrial ecosystems in the world.

Construction has begun on Halo Vista, a 2,300-acre mixed-use development positioned immediately adjacent to Taiwan Semiconductor Manufacturing Company’s (TSMC) rapidly expanding campus. TSMC is developing a massive semiconductor manufacturing complex backed by a $165 billion investment. The project will include six fabrication plants, two packaging facilities, and an R&D center spread across roughly 2,000 acres.

Halo Vista is being co-developed by Mack Real Estate Group and McCourt Partners, with Phoenix-based Willmeng Construction leading the initial phase of work, focused on horizontal infrastructure and site preparation. The development is designed to capture the influx of talent, suppliers, and capital tied to the semiconductor boom now reshaping the region.

At full buildout, Halo Vista will span nearly 30 million square feet across industrial, manufacturing, office, retail, residential, educational, and hospitality uses. Plans call for up to 9,000 residential units alongside research, healthcare, and commercial facilities intended to serve a broad range of users connected to the semiconductor supply chain.

Developers say Halo Vista is being designed as an integrated ecosystem, drawing inspiration from semiconductor clusters in Taiwan. The project is organized into a series of purpose-built districts that function together as a cohesive whole. These include industrial zones for advanced manufacturing, office and research districts to support innovation and R&D, regional retail areas that anchor commercial activity, and multifamily mixed-use districts that weave together housing, services, and everyday life.

Early construction activity is centered on preparing the site and delivering core infrastructure, as initial tenants begin to emerge. Announced first-phase occupants include a Costco, an auto mall with 11 dealership parcels, and a dual-branded Marriott hotel featuring Courtyard and Residence Inn properties. These initial additions are intended to address immediate gaps in retail, lodging, and services for a rapidly growing workforce.

The development’s location along Interstate 17 and Loop 303 provides direct connectivity across the Phoenix metropolitan area, reinforcing its role as a regional hub.

The full buildout of Halo Vista is expected to take between 15 and 20 years. In the near term, construction will focus on infrastructure and early tenant delivery, while later phases aim to expand the site into a comprehensive innovation hub anchored by the semiconductor industry.

Why Urban Planners Are Betting on ADUs to Add Housing Fast

Urban planning policy is moving accessory dwelling units (ADUs) from the margins into the mainstream. As housing costs rise and supply stays tight, ADUs are gaining attention because they add homes on lots that already have infrastructure, utilities, and neighborhood access.

An ADU is a smaller, independent home on the same lot as a primary residence. It can be a backyard cottage, garage conversion, basement apartment, internal conversion, or attached addition. In most cases, it has its own kitchen, bathroom, and sleeping area, making it a true standalone residence. Often called granny flats, in-law suites, or backyard homes, ADUs are increasingly seen as a practical way to add housing without major redevelopment.

Their appeal is straightforward. For homeowners, ADUs can create rental income and provide space for aging parents, adult children, caregivers, or extended family. For cities, they offer a form of gentle density by adding homes in neighborhoods that are already built out.

They also respond to a broader demographic reality: average household size in the U.S. has fallen sharply over time, and one- to two-person households now make up most households, even though much of the housing stock was designed for larger families.

The market data suggests ADUs are no longer a fringe idea. According to Shovels, U.S. ADU permits grew roughly 30-fold from 1980 to 2024, with annual permits remaining above 200,000 from 2022 through 2024.

Much of that momentum now comes from policy. Mercatus reported that, as of July 2025, 18 states had adopted broad statewide ADU legalization laws. California remains the clearest example of how legalization can translate into production, with ADU permits rising from fewer than 1,300 in 2016 to nearly 25,000 in 2022.

Notable programs recently launched by cities include:

  • New York City: In March 2026, the city announced a new ADU plan that includes an “ADU for You” platform, planning tools, and 11 pre-approved ADU designs, while also reopening the Plus One ADU program, which offers qualified homeowners up to $395,000 in support.

  • Chicago: Chicago expanded ADUs far beyond its earlier pilot program, with broader rules taking effect in spring 2026, allowing basement apartments, attic conversions, and detached coach houses across much more of the city.

  • Denver: In November 2024, Denver passed a citywide measure allowing ADUs in all residential areas, shifting them from a limited zoning option to a citywide housing tool.

  • Austin: Through HOME Phase 2, adopted in May 2024, Austin sharply reduced minimum lot sizes and introduced a simplified review process, making it easier to add more homes in existing neighborhoods.

The next phase of the ADU market will depend less on whether governments allow ADUs and more on whether they make them easier to finance, permit, and deliver.

Bharat Future City Is the New Blueprint for India’s Next Smart City

The Indian state of Telangana has ambitious plans for urban growth. Rather than extend Hyderabad, its capital and fourth-most populous city, the state is planning a new greenfield development: Bharat Future City. 

Spread across 30,000 acres and expected to accommodate up to 3 million people, Bharat Future City is positioned as India’s first fully integrated smart city, built around coordination rather than piecemeal growth. The project is framed as a cohesive model of urban development, where infrastructure, technology, and daily life function as a single system rather than a collection of disconnected parts.

At its core, Bharat Future City is structured around integration. Its AI, health, education, life sciences, residential, and entertainment zones are designed to operate as interdependent parts of one ecosystem, rather than isolated districts competing for infrastructure and services.

This approach extends across both physical and administrative systems. Transport networks, utilities, industrial zones, and residential areas are being planned together under a unified framework managed by the Future City Development Authority. Instead of addressing transport, energy, housing, and employment separately, the project aims to align them from the outset.

Plans include trunk road networks, metro connectivity, multimodal transport, and transit-oriented development built around a 15-minute-city model.

The city is organized around a central business district and catalytic zones, including a 300-acre AI City, a 200-acre Health City, an education hub of more than 500 acres, and a life sciences hub spanning about 3,000 acres. An entertainment district is also planned alongside the Rajiv Zoological Park and a 15,000-acre reserve forest.

Zoning outlined in the Detailed Project Report points to a high-rise AI district in Mucherla, while Meerkhanpet is planned as an education hub and areas near Kandukur are designated for health and wellness. The broader plan includes commercial corridors, residential townships, a central transport hub, and internal connectivity designed to reduce travel times.

Bharat Future City is also being pitched as India’s first net-zero greenfield smart city. A key component is a district cooling system that distributes chilled water through underground pipelines, potentially reducing electricity use by up to 50% while lowering emissions. Eco-friendly smart grids, underground power systems, electric mobility, and a 15,000-acre reserve forest are built into the design, embedding environmental considerations into the city’s structure.

Despite growing investment interest from investors, including a $3 billion Vingroup proposal, the project remains in a formative stage. A comprehensive master plan is expected by December 2026, and while about 15,000 acres have been acquired, more land transfers need to be finalized.

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