Arizona leaders disagree on pausing new data centers
Arizona's Attorney General Kris Mayes and Governor Katie Hobbs are divided on how to manage the state's growing data center industry. Mayes advocates for a statewide moratorium due to water and electricity concerns, while Hobbs opposes a pause but acknowledges the need for sustainable growth. This debate has led to APS proposing a 45% rate increase for data centers, which Microsoft is challenging.
Arizona's top Democratic leaders, Attorney General Kris Mayes and Governor Katie Hobbs, are at odds regarding the management of the state's rapidly expanding data center industry. Attorney General Mayes is calling for a statewide moratorium on new data center approvals, citing significant concerns over water usage, electricity demands, and the capacity of the power grid to sustain growth. She emphasized the need to pause and assess resources before further development.
Conversely, Governor Hobbs agrees that concerns about data centers are valid and necessitate a balanced approach, but she explicitly stated her opposition to a statewide moratorium. Hobbs advocates for finding a sustainable path forward that ensures data centers benefit Arizonans without negatively impacting utility rates or communities. She stressed the importance of data centers operating sustainably and being good neighbors.
This policy debate has tangible effects, with APS, the state's major utility, reporting that grid constraints have prevented it from committing to new data center connections for two and a half years. In response, APS is proposing a 45% rate increase specifically for data centers, a move that Microsoft is challenging. Both leaders recognize data centers as crucial to Arizona's high-tech economy but diverge on the regulatory strategy.