Up to 107 Arizona Data Center Projects Qualify for Tax Breaks Despite Three-Year Moratorium
Arizona has imposed a three-year moratorium on data center tax incentives, but up to 107 projects may still receive sales-tax exemptions because their applications were submitted before the freeze began July 1. The Arizona Commerce Authority approved 107 certifications, denied three and recorded three withdrawals.
Arizona’s three-year freeze on tax incentives for data centers does not apply to applications submitted before July 1. Developers and landowners filed applications ahead of the moratorium, allowing as many as 107 projects to remain eligible for sales-tax exemptions.
The Arizona Commerce Authority approved 107 tax-exemption certifications, denied three and recorded three withdrawals. ACA Executive Vice President for Executive Initiatives Patrick Ptak said the certifications may cover multiple planned facilities on one parcel, expansions of existing facilities or future development phases rather than 107 standalone data centers.