Data centers are key to the AI boom. So why is Arizona pushing back?

The Arizona Republic's podcast, "The Gaggle," discusses how Phoenix and the greater Valley area are being affected by the increasing development of AI data centers. The episode highlights a new business climate in Arizona characterized by division over data center expansion. A prime example of this emerging opposition occurred in Chandler, where the City Council voted unanimously to deny a proposed AI data center. This decision came after months of lobbying by former U.S. Sen. Kyrsten Sinema, who had advocated for the project, suggesting it would position Chandler at the forefront of the "AI revolution." However, community protests arose, leading the Council to reject the proposal due to concerns over significant water usage, potential noise pollution, and questions regarding the reliability of the promised job creation. This outcome in Chandler contrasts with the broader trend, as Arizona continues to be one of the fastest-growing hubs for data centers, prompting state-level discussions about resource allocation, tax revenue, and the overall impact on the job market. The podcast featured Republic development reporter Corina Vanek and Michael Hicks, director of the Center for Business and Economic Research at Ball State University, who has studied the economic effects of data center growth.