Arizona Attorney General Kris Mayes is calling for a halt on new data centers across the state.
In an Aug. 31 press release, Mayes urged lawmakers and Democratic Gov. Katie Hobbs to pass legislation that would temporarily halt new data centers until the state comes up with a plan to regulate the industry’s growth, citing concerns about its impacts on the state’s water and energy supply.
“The only sane thing to do is to pause the approval of new data centers,” Mayes said. “Data centers are power and water-intensive, and Arizona is challenged on both fronts right now.”
Mayes pointed to proposed rate increase requests from two providers — Arizona Public Service Co. and Tucson Electric Power Co. — which Mayes has opposed, though the cases remain ongoing. Mayes argued the proposed rate increases stem partially from a need for more infrastructure to serve existing and forthcoming data centers.
“Arizona’s utilities are already seeing record electricity demand, and adding more energy-intensive data centers could stress Arizona’s electric grid and further raise power bills,” Mayes wrote in the release.
In communities located near data centers, residents have reported higher utility costs and strains on the grid due to the large amount of energy required to operate massive data centers.
Concerns over water and extreme heat
Mayes also pointed to water usage in her call to halt construction. While data centers nationwide require significant amounts of water to operate, the issue is particularly concerning in Arizona, a state with extreme heat that’s been in a drought for more than 30 years. Activists across the state have pushed back against the data center boom, arguing water should be prioritized for residents, not water-guzzling data centers.
At a time when the federal government has moved to cut Arizona’s Colorado River supply by roughly 30%, Mayes argues the state should prioritize resources for the community rather than data centers.
“Arizona may be one of the most exposed states in the country to the negative impacts of excessive data center development,” Mayes said. “The Colorado River is in serious distress, and Wall Street firms are seeking to ship La Paz County’s groundwater to Phoenix to fuel the Valley’s growth – against the wishes of the county’s residents and leaders. We owe it to our communities, homeowners, and future generations of Arizonans to better manage our water and power needs before any new data center approvals are issued.”
In the press release, Mayes pointed to a 2025 analysis from sustainability nonprofit Ceres that estimated data center-related water demand could surge by more than 450% if all planned data center projects in the Phoenix area are built. Mayes also pointed to a recent study from Arizona State University that found data centers, even ones that don’t use water-based cooling, can raise temperatures by up to four degrees in neighboring communities.
Earlier this year, Hobbs signed a state budget that included a three-year pause on data center tax incentives. Arizona previously granted tax exemptions to data centers, bringing more than 150 data centers to the state.
As the industry booms, more and more lawmakers are pushing to get ahead of data center construction and ensure resources are provided to people rather than big tech companies.
