Data centers emerge as midterm flashpoint in Arizona and beyond
Data centers have become a significant political issue in midterm elections, with widespread public opposition. In Arizona, Attorney General Kris Mayes proposed a one-year moratorium on data center construction, while Governor Katie Hobbs secured a three-year tax credit moratorium and aims to address water and energy costs. Pennsylvania's Governor Josh Shapiro also signed an executive order restricting data center projects.
Data centers have emerged as a significant and bipartisan political issue in the current midterm election cycle, evolving from local zoning disputes into prominent campaign talking points. A recent Gallup poll indicated that over 70% of Americans do not want data centers in their areas, a sentiment reflected in more than 100 campaign ads analyzed by Politico that universally portrayed data centers negatively. This trend is evident in races including an Ohio Senate contest, Michigan’s 7th Congressional District, and the Pennsylvania governor’s race, illustrating a rare convergence of Republican and Democratic concerns on the issue.
Pennsylvania’s Democratic Governor, Josh Shapiro, took executive action in August by signing an order to restrict what he termed "predatory data center projects," a notable shift given his past support for the industry. His Republican challenger, Stacey Garrity, has capitalized on this, leading both candidates to run ads accusing each other of being overly accommodating to data center developers.
In Arizona, Attorney General Kris Mayes, a Democrat seeking reelection, called for a one-year moratorium on data center construction, though political consultant Marcus Dell’Artino noted she lacks the unilateral authority to impose such a ban. Governor Katie Hobbs, also a Democrat, responded by not endorsing a construction pause but emphasized her administration’s efforts to ensure data centers benefit Arizonans. Her office confirmed that she has already secured a three-year moratorium on data center tax credits and is actively exploring policies to eliminate these credits permanently, charge data centers fairly for water use, and mitigate utility bill increases linked to their energy consumption.
Senate President Warren Petersen, a Republican challenging Mayes, touted the existing tax credit moratorium but declined to back a construction pause, criticizing Mayes’ record on utility rates. Despite political rhetoric, Dell’Artino suggested that public concerns about data center water usage might be overstated, particularly for newer facilities employing closed-loop cooling. Experts anticipate that the debate over data center regulation, including new legislative proposals, will continue in state capitols regardless of election outcomes.