Arizona approved 107 data center tax breaks before moratorium
Arizona approved 107 data center tax incentive applications out of 113 submitted just before a temporary statewide pause on the incentive took effect. The surge could more than double the number of qualifying facilities and potentially represent $18.3 billion in required in-state investment, raising concerns about lost tax revenue, water use, power demand and infrastructure strain.
Arizona approved 107 of 113 data center tax incentive applications submitted between June 15 and June 30, shortly before a temporary statewide pause on the incentive. Three applications were withdrawn and three were denied. Many applications involve expansions or additional facilities at existing projects, so the approvals do not necessarily represent 107 new data centers under construction.
The approvals could more than double Arizona's 73 existing qualifying facilities if all projects are completed, with minimum required in-state investment totaling $18.3 billion. Gov. Katie Hobbs promoted the temporary pause as a major budget victory and estimated it would save the state $57 million annually, while data center growth has fueled debate over water consumption, electricity demand and infrastructure capacity. The issue also featured prominently in the 2026 Arizona Corporation Commission race and drew calls from Attorney General Kris Mayes for a broader data center moratorium.