Arizona Attorney General to Host Town Hall on Data Center Moratorium Proposal in Ahwatukee
Arizona Attorney General Kris Mayes is holding a town hall in Ahwatukee, Phoenix, to advocate for a moratorium on data center construction across the state, citing concerns about energy and water resources. This comes after Phoenix approved a large data center campus by Menlo Equities, which is facing local resident opposition over construction disturbances and environmental impacts. The debate also involves state legislation on tax incentives and the potential legal implications of a moratorium under Proposition 207.
Arizona Attorney General Kris Mayes is scheduled to visit Ahwatukee, a village in Phoenix, on October 14 to emphasize her call for a statewide moratorium on data center construction. Mayes insists a pause is necessary until Arizona devises a comprehensive plan to manage the industry's rapid growth, particularly in light of escalating energy costs and reduced Colorado River water supplies for the state. Her office clarified that the visit is not an investigation into Phoenix's approval of a 1-million-square-foot data center campus being developed by Menlo Equities (also known as Menlo Digital) at East Thistle Landing Drive and 48th Street, but rather a town hall to hear resident concerns.
The Attorney General highlighted that increased demand from data centers has contributed to the need for infrastructure development, impacting utility rate increases from companies like Arizona Public Service Company and Tucson Electric Power Company. She also cited an Arizona State University study indicating data centers can raise local temperatures by up to 4 degrees Fahrenheit, positioning Arizona as highly vulnerable to negative impacts from excessive development. This stance has garnered attention from State Senate President Warren Petersen, who noted the Republican Legislature's previous three-year moratorium on tax incentives for new data centers, and criticized Mayes's record on utility rates.
Local residents, organized as the Ahwatukee Community Alliance, have voiced strong opposition to the Menlo data center, citing concerns over health, property values, and quality of life due to noise, light pollution, and early morning construction. Maricopa County Supervisor Mark Stewart has pressed air quality officials to require Menlo to resubmit air permit applications for its generators. The Arizona Chamber of Commerce & Industry, however, issued an "Arizona Offline Pledge," challenging moratorium supporters to commit to foregoing digital services dependent on data center infrastructure, while advocating for responsible growth conversations rather than a blanket moratorium.
City officials have issued multiple warnings to Menlo's contractor for violating construction time restrictions, which has frustrated residents who feel enforcement is insufficient. The debate over data center development is emerging as a significant issue in the upcoming election season, with Mayes seeking re-election against Petersen.