To build or not to build? Data center debate hits the campaign trail
Arizona is experiencing an intensifying debate over data center growth, becoming a key issue in midterm elections. Attorney General Kris Mayes has called for a moratorium on new data centers, citing concerns over water usage and electricity demand. Political candidates and state officials are divided on the issue, with some supporting growth and others advocating for stricter regulations and an end to tax incentives.
The debate surrounding rapid data center growth has become a central issue for political candidates on Arizona's campaign trail, with midterm elections approaching. Attorney General Kris Mayes initiated a call for a statewide moratorium on data centers on August 31, citing public concerns regarding water usage and electricity demands. This move prompted a response from the Arizona Chamber of Commerce & Industry, which facetiously challenged data center opponents to cease using cloud-based technologies.
A recent poll from Noble Predictive Insights revealed that 57% of registered Arizona voters oppose large-scale data center projects, with a majority supporting limits on development due to water use, electricity demand, and infrastructure costs. The Governor's Office of Resiliency also reported that local communities feel "overwhelmed" by the volume of proposed projects and noted a "disconnect" in state-level energy policymaking. Cynthia Zwick, director of the Residential Utility Consumer Office, attributes public backlash to a lack of transparent communication from developers and utility companies.
Key political figures are taking differing stances. Commissioner Kevin Thompson and Rep. Ralph Heap, both Republican hopefuls for the Arizona Corporation Commission, support data center growth. Conversely, Democrats Clara Pratte and Jonathon Hill, also running for the Commission, have pledged to enact strict rules to address water and energy concerns, although they have not fully endorsed a moratorium. Governor Katie Hobbs, if reelected, plans to permanently end tax incentives for data centers and mandate fair pricing for their water and energy consumption; these tax incentives are currently paused until 2029 due to a provision she championed in the state budget. Congressman Andy Biggs, Hobbs' Republican opponent, also supports repealing tax incentives but, like former Sen. Sine Kerr, opposes an outright moratorium, preferring local decision-making.