Mayes seeks ban on new data centers despite pushback

Arizona Attorney General Kris Mayes has voiced her support for a statewide moratorium on new data center development in Arizona, citing concerns over the state's escalating energy costs and dwindling water resources from the Colorado River. Mayes urged state lawmakers and Governor Katie Hobbs to enact a temporary pause on data center construction until a comprehensive plan can be established to manage their increasing demand for power and water. She highlighted a projection by Ceres, a green energy nonprofit, indicating a significant rise in data center water consumption in the coming years, positioning Arizona as particularly vulnerable to the negative impacts of excessive development.

This proposal faces pushback from industry representatives, including Courtney Coolidge, executive vice president of the Arizona Chamber of Commerce & Industry, and Jason Hayes, a senior research fellow at the Heritage Foundation’s Center for Energy, Climate and Environment. They acknowledge the legitimate concerns but argue against a ban, emphasizing the economic benefits such as tax revenue for infrastructure and schools, and the necessity of data centers for a modern economy. Both suggest that Arizona should focus on innovative solutions, responsible development practices, and expanding reliable power generation, rather than implementing a ban that could deter business.

Coolidge and Hayes also pointed out that modern data centers employ efficient closed-loop cooling systems, reducing water usage, and that the industrial sector's overall water consumption in Arizona is relatively low compared to agriculture. They stress that if Arizona does not build these essential digital infrastructures, other states or countries will, potentially impacting America's competitiveness. A recent poll indicates public support for a construction pause on large data centers within the state.