Data center backlash: Ruining neighborhoods or powering Arizona's future?

News Clip9:52FOX 10 Phoenix·AZ·9/2/2026

This video discusses the growing opposition to data center expansion across Arizona, particularly in areas like East Mesa and Ahwatukee, due to concerns about land use, water consumption, and power grid strain. Courtney Coolidge of the Arizona Chamber of Commerce defends data centers, highlighting their economic contributions and clarifying their actual impact on resources. The debate centers on balancing economic benefits with community concerns and effective policy solutions.

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Gov: Arizona Corporation Commission, Local city councils

There is growing community opposition to data center development across Arizona, particularly in residential areas like East Mesa and Ahwatukee, according to a segment on FOX 10 Talks. Residents are concerned about land use, water consumption, power grid strain, and a perceived lack of input in the development process.

Courtney Coolidge, Executive Vice President of the Arizona Chamber of Commerce, addressed these concerns, emphasizing that data centers are crucial for the modern economy. She stated that while 70% of people don't want a data center in their backyard, they benefit from the services they provide. Coolidge highlighted the economic impact, including 87,000 direct and indirect jobs and over $1 billion in state and local tax revenue, which helps fund infrastructure like roads and schools and can lower residential taxes.

Coolidge challenged misconceptions about resource use, explaining that most Arizona data centers use closed-loop water systems, making them less water-intensive than commonly believed. Industrial water use, including data centers, accounts for only 7% of Arizona's total water consumption, a figure that has decreased since 1957 despite population growth. Regarding energy, she noted that the Arizona Corporation Commission has implemented policies to ensure large energy users, such as data centers, pay for their own infrastructure upgrades and do not burden residential ratepayers. She also mentioned that industries are becoming better community partners, investing in local areas and increasing transparency.

The discussion touched on the siting of data centers, with residents questioning why they are built near residential areas rather than further out. Coolidge explained that proximity to power and water resources is a factor, but also pointed out that Arizona already has over 160 data centers, many of which are unnoticed due to landscaping and setbacks. She dismissed the idea of a total moratorium as a policy solution, suggesting it would undermine the digital economy and proposing a satirical "Arizona offline pledge" for those advocating such bans.