In a large bowl, combine 1 cup warm water, 1 teaspoon granulated sugar, and 2.25 teaspoons active dry yeast; stir and let sit 5–10 minutes until foamy.
Stir in 2 tablespoons olive oil and 1 teaspoon salt.
Gradually add 2.5 cups all-purpose flour, mixing until a shaggy dough forms.
Turn dough onto a lightly floured surface and knead 5–7 minutes until smooth and elastic, adding more flour by the tablespoon if too sticky.
Lightly grease the bowl with olive oil, place the dough inside (turning to coat), cover, and let rise in a warm spot 1–1.5 hours until doubled in size.
While dough rises, make the sauce: in a small bowl, stir together 15 ounces crushed tomatoes, 1 teaspoon dried oregano, 0.5 teaspoon garlic powder, and 0.5 teaspoon salt.
About 30 minutes before baking, preheat oven to 475°F with a pizza stone or baking sheet inside.
After the dough has risen, punch it down and turn onto a floured surface; roll or stretch into a 12–14-inch circle, letting it rest 5 minutes if it springs back.
Transfer dough on parchment paper to a pizza peel or baking sheet; spread sauce over dough leaving a 0.5-inch border.
Sprinkle 1.5 cups shredded low-moisture mozzarella cheese and arrange 3 ounces sliced pepperoni on top.
Slide the parchment with pizza onto the preheated stone or baking sheet; bake 12–18 minutes until crust is golden and cheese is bubbly.
Remove pizza and let cool 5 minutes before slicing and serving.
Store leftovers in an airtight container in the refrigerator up to 3 days; reheat in the oven or a toaster oven.