Arizona

Data center activity in Arizona

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Regulatory Environment Score
A
+9 pts

Arizona's strong regulatory environment is anchored by an exceptional zoning approval record, with at least 30 reported approvals against only 4 denials, making it one of the most permissive states for data center siting. While at least 19 moratoriums have been enacted, primarily at the local level, the broader permitting landscape remains favorable, with at least 11 projects approved despite opposition and only 4 reported as blocked. The slight recent softening reflects the volume of moratorium activity, but unlike neighboring California, where opposition frequently succeeds in blocking projects, Arizona's opposition efforts more often lose than win. With 20 active companies and 347 total clips providing high-confidence data, Arizona continues to be a top-tier destination in the Sun Belt for data center investment.

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News ClipThe Business Journals·AZ

Arizona's data center moratorium: An opportunity for improved policy$

This article discusses a proposed data center moratorium in Arizona, framing it not as a setback but as an opportunity for the state to establish better policies and regulations for data center development. It suggests that a pause in development could allow for a more thoughtful and sustainable approach to the industry's growth.

7/24/2026
News ClipQueen Creek Tribune·Gilbert, Maricopa County, AZ

Gilbert develops stricter data center controls

The Town of Gilbert is developing and implementing stricter controls for data center development within its jurisdiction. These new regulations will likely impact future data center projects in the area, addressing concerns related to their operation and impact.

7/21/2026
News ClipPrescott eNews·Prescott, Yavapai County, AZ

Opinion: Luddites Are Winning the Data Center Debate$

This article is an opinion piece from Prescott eNews titled "Luddites Are Winning the Data Center Debate." Without the full content, it suggests a local or general debate where those opposing data center development are perceived as succeeding.

7/21/2026
News Clipazcentral.com and The Arizona Republic·AZ

Your home could help run data centers. How virtual power plants work

A partnership between Tesla, Sunrun, and Renew Home aims to supply data centers with up to 16 gigawatts of power from virtual power plants nationwide. This initiative uses smart home devices to manage energy demand more efficiently, offering a faster and more sustainable power source for data centers. Homeowners participating in these programs can benefit from lower energy bills and financial incentives.

7/19/2026
News Clipyourvalley.net·Phoenix, Maricopa County, AZ

Banning data centers won’t solve Arizona's water issues$

Oshkosh, Wisconsin, is considering a one-year moratorium on data centers due to concerns over water consumption and land use. An opinion piece argues that such bans won't solve Arizona's water issues, instead advocating for innovation in water-saving cooling systems, citing a Phoenix hyperscale facility. It suggests lawmakers should focus on fostering these innovations rather than implementing restrictions.

7/17/2026
EPA weighs eliminating public comment requirements for a common data center air permit
News ClipKJZZ·AZ

EPA weighs eliminating public comment requirements for a common data center air permit

The Environmental Protection Agency (EPA) is proposing to eliminate a federal 30-day public notice requirement for "minor source" air permits, which are commonly used by data centers for backup generators. Environmental advocates, including the Sierra Club's Grand Canyon Chapter, are concerned this move will weaken transparency and disproportionately favor the data center industry. The Arizona Department of Environmental Quality (ADEQ) is evaluating the proposal while emphasizing its commitment to public engagement.

7/16/2026
Gilbert develops stricter data center controls
News Clipgilbertsunnews.com·Gilbert, Maricopa County, AZ

Gilbert develops stricter data center controls

Gilbert is developing stricter regulations for data centers, covering aspects like sound, lighting, water use, electricity, and zoning. The proposed rules include requiring data centers to be in industrial zones, prohibiting potable water use and open-loop evaporative cooling, and mandating specific setbacks and sound studies. The Planning Commission is expected to hold a formal hearing on these measures.

7/13/2026
Immigration, data centers factor in Marana council race
News ClipArizona Daily Star·Marana, Pima County, AZ

Immigration, data centers factor in Marana council race$

Data centers have become a central issue in the Marana Town Council race, with candidates debating the approval of a large data center project by Beale Infrastructure. Opposition candidates are calling for a moratorium on development and greater transparency, citing concerns over power and water usage. A legal challenge is currently underway to force a public referendum on the rezoning decision.

7/12/2026
Marana Town Council candidates discuss data center, growth and proposed ICE detention facility at forum
News ClipAZPM News·Marana, Pima County, AZ

Marana Town Council candidates discuss data center, growth and proposed ICE detention facility at forum

Candidates for Marana Town Council discussed the recently approved data center rezoning at a forum, highlighting community division over the project's water and power usage. Opponents raised concerns about potential rising utility costs and insufficient regulatory oversight, while supporters emphasized job creation. The forum also touched upon the need for robust infrastructure alongside economic development.

7/11/2026
Arizona Legislature freezes data center tax breaks for three years
News ClipArizona Capitol Times·AZ

Arizona Legislature freezes data center tax breaks for three years

Arizona House Democratic Minority Leader Oscar De Los Santos announced a significant bipartisan achievement: a three-year freeze on new data center tax subsidies. He touted this statewide moratorium as a win for affordability and a curb on corporate greed. The measure was part of a larger budget agreement aiming to benefit middle-class Arizonans.

7/11/2026