Arizona governor rejects data center moratorium call as debate escalates
Arizona's Attorney General Kris Mayes is calling for a statewide moratorium on new data centers due to concerns about water and electricity resources. However, Governor Katie Hobbs has rejected the idea, stating she does not believe a statewide pause is the right approach. The debate highlights the state's efforts to balance economic growth from the tech industry with environmental and infrastructure challenges.
Arizona's top Democrats, Attorney General Kris Mayes and Governor Katie Hobbs, are at odds over the management of the state's rapidly expanding data center industry. Attorney General Mayes has publicly called for a statewide moratorium on new data centers, citing mounting concerns over water consumption and strain on the electricity grid, especially as artificial intelligence fuels demand for more facilities.
Mayes emphasized the need to "hit the pause button" to assess the state's water and energy resources before further approvals. Arizona currently hosts approximately 160 data centers, and public opposition to these projects has grown with their increasing size and number.
Governor Hobbs, while acknowledging the validity of these concerns, stated her opposition to a statewide moratorium, advocating instead for a balanced approach to economic growth and resource management. She noted that data centers are integral to Arizona's burgeoning high-tech economy.
The escalating debate has also impacted APS, a major utility company. An APS spokesperson revealed that grid constraints have prevented the utility from committing to additional data centers for the past two and a half years. In response, APS is proposing a 45% rate increase specifically for data centers, a proposal that Microsoft is actively challenging.