A moratorium is not the answer to Arizonans’ reasonable data center concerns
Guest commentator Steven Zylstra argues that Arizona should address community concerns about data center water use, energy efficiency and environmental impacts without imposing a statewide development moratorium. The article notes that Gov. Katie Hobbs paused sales tax exemptions for new data centers for three years, while Attorney General Kris Mayes has called for a broader moratorium.
Steven Zylstra, president and CEO of the Arizona Technology Council, argues that Arizona should continue allowing data center development while requiring projects to address local concerns about water consumption, energy efficiency and environmental impacts. He says the industry has generated jobs, investment and tax revenue, and warns that a blanket moratorium could push economic opportunities to states such as Virginia and Georgia.
Gov. Katie Hobbs enacted a three-year pause on sales tax exemptions for new data centers in the fiscal 2027 budget. Attorney General Kris Mayes subsequently called for a statewide moratorium on new development. Zylstra contends that projects should instead be evaluated individually, citing water-efficient cooling systems and data centers' reported share of Arizona's overall water use.