Arizona AG Mayes seeks moratorium on new data centers despite pushback

Arizona Attorney General Kris Mayes has announced her support for a statewide moratorium on new data centers, urging state lawmakers and Governor Katie Hobbs to pass a temporary ban on construction. Mayes contends that such a pause is essential given Arizona's escalating energy costs and upcoming federal mandates for reductions in Colorado River water usage. She highlighted a 2025 study from Ceres, a green energy nonprofit, projecting a substantial increase in data center water consumption from 2.9 billion to over 14.5 billion gallons in the coming years.

However, this proposal faces significant pushback from business groups. Courtney Coolidge, executive vice president of the Arizona Chamber of Commerce & Industry, acknowledged the Attorney General's concerns but disagreed with the call for a moratorium, stating that solutions to these issues should be pursued rather than a ban. She emphasized that data centers are crucial for Arizona's economic ecosystem, providing tax revenue, jobs, and essential digital infrastructure.

Jason Hayes, a senior research fellow at the Heritage Foundation’s Center for Energy, Climate and Environment, echoed similar sentiments, suggesting that Arizona should focus on innovative solutions rather than a temporary ban that could lead to significant business and tax revenue losses. He also noted that modern data centers often incorporate closed-loop cooling systems that use less water than reported and highlighted agriculture as the largest water user in the state. A recent Arizona poll indicates majority voter support for pausing large data center construction, although no local governments have yet implemented such a moratorium.