AG Mayes calls for data center halt
Arizona Attorney General Kris Mayes is calling for a temporary halt on new data center approvals across the state. She cites concerns about soaring utility bills, increased strain on the electricity grid, and deepening drought conditions, arguing that data centers are highly intensive in power and water consumption. Mayes urges lawmakers and Gov. Katie Hobbs to pass legislation to regulate the industry's growth and protect state resources before any further approvals.
Arizona Attorney General Kris Mayes has urged state lawmakers and Democratic Gov. Katie Hobbs to enact legislation that would temporarily halt new data center approvals. In an August 31 press release, Mayes expressed significant concerns regarding the data center industry's impact on Arizona's critical water and energy supplies, emphasizing the state's ongoing drought and record electricity demand. She stated that "The only sane thing to do is to pause the approval of new data centers," highlighting their power and water-intensive nature.
Mayes linked proposed rate increases by utility providers, Arizona Public Service Co. and Tucson Electric Power Co., to the growing infrastructure needs driven by existing and prospective data centers. She warned that additional energy-intensive facilities could further strain Arizona's electric grid and escalate power bills for residents. Furthermore, the Attorney General underscored the severe implications of data center water usage in a state experiencing over three decades of drought, especially as the federal government has already reduced Arizona's Colorado River supply.
She pointed to a Ceres analysis projecting a 450% surge in data center-related water demand if all planned Phoenix-area projects proceed, and an Arizona State University study indicating potential temperature increases in communities near data centers. Mayes asserted that Arizona is highly vulnerable to the negative effects of unchecked data center development, advocating for a prioritization of resources for communities over large tech enterprises. This call follows Gov. Hobbs' earlier signing of a state budget that included a three-year pause on data center tax incentives.