Gov. Hobbs won't pause Arizona data center development despite calls to do so

State business and political leaders have been trading salvos this week over the possibility of a statewide moratorium on data center construction to address community concerns.

Gov. Katie Hobbs shared her thoughts on the idea at a press conference on Thursday.

“I don't think a statewide moratorium is the answer. I think there are places where data centers make sense, and they're an important part of the high-tech economy that we're growing here. We need to make sure that they are doing that sustainably. That data centers pay for themselves. That they're not raising utility costs on Arizonans,” she said.

Hobbs says she recognizes there are concerns over rising energy costs and sustainability, which is why she says she sought an end to data center tax credits on computer equipment.

But lawmakers could only agree to a three-year pause on these credits, and the Arizona Commerce Authority, which oversees the program, received a flood of applications — many of which were likely eligible — in the days before it was sunset.

Attorney General Kris Mayes struck a much more urgent tone earlier this week, calling for an immediate pause on development. 

She urged Hobbs and state lawmakers to use that time to craft a cohesive plan for managing looming water shortages and high energy costs.

The Arizona Chamber of Commerce, on the other hand, urged Arizonans to consider the consequences of Mayes’ proposal. The chamber said those that support a moratorium should be willing to give up artificial intelligence, social media, streaming services, online banking and other modern conveniences afforded by data centers.