Why communities are pushing back against data centers in Arizona

Why communities are pushing back against data centers in Arizona

News ClipCopper Courier·Tucson, Pima County, AZ·11/3/2026

Arizona residents and local officials are pushing back against data center projects over concerns about water consumption, electricity costs, noise, pollution and limited permanent jobs. Officials in Tucson, Pinal County and Chandler have rejected or halted projects, while Pima County enacted a temporary moratorium and Phoenix-area residents continue opposing a Menlo Digital development.

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Gov: Tucson City Council, City of Tucson, Pima County, Arizona Attorney General's Office, Arizona Corporation Commission, Arizona Legislature, Pinal County Board of Supervisors, City of Chandler, Chandler City Council, City of Phoenix

Arizona has become a major data center market, particularly around Phoenix and Tucson, but residents are increasingly challenging projects over water use, electricity demand, environmental impacts and limited economic benefits. In Tucson, opposition to the proposed Project Blue facility helped prompt the city to end its involvement, while the project developer later redesigned the facility and began construction outside city limits. Tucson subsequently adopted tougher data center review rules, and Pima County imposed a 120-day moratorium while considering zoning restrictions that could prohibit water-intensive cooling systems.

Community opposition also helped defeat the proposed La Osa Energy Center in Pinal County and a data center proposal in Chandler. In Phoenix’s Ahwatukee neighborhood, residents continue to oppose a Menlo Digital complex under construction near homes, schools and a daycare, citing construction noise, heat and concerns about the project’s approval process. The article also notes an Arizona legislative moratorium on data center tax subsidies and an investigation request from Attorney General Kris Mayes into whether residential customers were charged costs associated with large energy users.