An Arizona municipality has blocked a proposed data center development following intensive AI industry advocacy efforts. The decision highlights growing tensions between technology infrastructure expansion and local community concerns. As computational demands surge across blockchain networks and decentralized applications, data center policies increasingly shape the operational landscape for crypto ecosystems. The city's rejection underscores how local governance remains a critical variable in determining which regions can attract major infrastructure investment. Such regulatory friction may redirect development toward more permissive jurisdictions, influencing where blockchain and Web3 nodes ultimately establish their physical footprints in North America.