Arizona attorney general pushes pause on new data center projects amid resource concerns

Arizona Attorney General Kris Mayes has called on the state legislature and Governor Katie Hobbs to pass legislation that would temporarily suspend approvals for new data centers until a comprehensive resource-management plan is in place. She highlighted a Ceres nonprofit study forecasting a five-fold increase in water consumption by data centers, stressing that Arizona is already facing higher energy bills and reduced Colorado River allocations.

The Arizona Chamber of Commerce’s executive vice president, Courtney Coolidge, recognized the issues but argued that data centers are integral to the state’s economy and that solutions, not bans, are needed. Heritage Foundation senior fellow Jason Hayes warned that a moratorium could diminish tax revenue that funds infrastructure and education, and urged the state to explore more reliable power sources. The debate reflects a broader tension between environmental stewardship and economic development in a region grappling with water scarcity and grid reliability.