Arizona data center growth linked to environmental impacts and rising utility costs; Governor proposes ending tax incentive
Data center expansion in Arizona is linked to environmental issues such as extreme heat, poor air quality, and rising utility costs, disproportionately affecting Latino construction workers and communities of color. Governor Katie Hobbs has proposed ending a state tax incentive for data centers, and leaders are urged to adopt policies prioritizing public health and worker protections. Communities in the Valley are actively pushing back against these developments.
Jocelyn Anaya Galvan, in a guest commentary for the Arizona Capitol Times, highlights the human cost of rapid data center expansion in Arizona, particularly for outdoor construction workers and communities of color. She cites her father, a Latino construction worker building a massive data center in north Phoenix, who faces extreme heat, health risks, and high utility bills without employer-provided health insurance.
The article details how energy-intensive data centers contribute to longer summers, hotter nights, and rising temperatures in Phoenix neighborhoods, exacerbating an urban heat island effect. Residents in Ahwatukee, Surprise, and Tucson have raised concerns over water usage, air quality, and rising neighborhood temperatures. An ASU study found waste heat from data centers can raise adjacent Phoenix neighborhood temperatures by four degrees, contributing to increased electricity costs for families.
Prominent Arizona leaders are addressing the issue, with Governor Katie Hobbs proposing to end a $38.5 million state tax incentive for data centers, a move supported by Phoenix Mayor Kate Gallego, who has noted the strain on energy systems. Galvan advocates for stronger worker protections, clean energy investments, and policies guided by frameworks like GreenLatino's Latino Climate Justice Framework, urging policymakers to prioritize public health over corporate profits and push for federal legislation to lower energy costs.