Mayes calls for a ban on data center development, cites water and energy concerns
Arizona Attorney General Kris Mayes is advocating for a pause on data center development in the state, citing concerns over their impact on residential energy rates and water supplies. She highlights that data centers contribute to increased power bills due to infrastructure demands and exacerbate water shortages, particularly affecting the Colorado River supply. Mayes' office has intervened in a utility rate case and plans to explore using nuisance laws to address local community concerns.
Arizona Attorney General Kris Mayes has urged state lawmakers to enact a moratorium on data center development across Arizona. Her call stems from significant concerns that the immense energy and water demands of data centers are adversely affecting residential energy rates, exacerbating water shortages, and contributing to higher temperatures and emissions within the state. Mayes specifically noted that utilities, Arizona Public Service (APS) and Tucson Electric Power (TEP), are seeking over 10% rate increases for residents, largely attributing this to the costly infrastructure development required to meet data centers' power demands.
Mayes' office has actively intervened in the pending APS rate case, currently under judicial review and awaiting approval from the Arizona Corporation Commission, arguing that proposed special tariffs for data centers do not adequately protect consumers. She contends that out-of-state developers are not bearing the full costs of their operations. The Attorney General also emphasized the critical impact on water resources, particularly as Arizona prepares for substantial cuts to its Colorado River supply.
Data centers contribute to water demands for both cooling systems and the energy generation required to power them. An analysis by Ceres projects a potential 450% surge in water demands if all planned data center projects in Phoenix proceed. Looking ahead, Mayes indicated that her office would explore utilizing nuisance laws to assist communities in opposing unwanted data centers, with an initial focus on the Ahwatukee area, where she plans to meet with residents this fall.