Staff Reports
Attorney General Kris Mayes this week called for a statewide moratorium on new data centers in Arizona. Her office says the goal is simple: pause approvals until the state can deal with shrinking Colorado River water supplies and rising power demand. That new ask has set off a fight between state officials, business groups and energy experts — and it has real stakes for Arizona jobs and budgets.
Mayes’ moratorium pitch: water, power and a pause
Attorney General Kris Mayes told lawmakers and Governor Katie Hobbs that “the only sane thing to do is to pause the approval of new data centers.” She cited a Ceres study that projects data‑center water use tied to electricity could grow from roughly 2.9 billion gallons to more than 14.5 billion gallons in the years ahead. Mayes argues Arizona is already squeezed on both water and electricity thanks to federal Colorado River cuts and rising energy costs for families.
Why a blanket moratorium is the wrong answer
It’s fair to worry about water and power. But a broad construction ban would be a blunt tool that wrecks jobs and tax revenue for little gain. The Arizona Chamber of Commerce and industry groups call the idea “politically expedient” and warn a ban would chase projects — and payroll — to other states. Heritage Foundation experts point out data centers are critical digital infrastructure and say we should fix the grid and water rules, not slam the door on investment.
Reality check: what the state can — and already has — done
Limited steps vs. sweeping bans
The governor already pushed a narrower step earlier this year: a pause on new data‑center tax incentive certifications. That measure stops new state tax breaks but does not stop companies from building without incentives. A true statewide moratorium on permits and construction would need the Legislature’s stamp and would invite legal fights from counties, developers and out‑of‑state firms. Local governments are already weighing rules and rejecting zoning in some areas, so the dispute is unfolding at every level.
Smart solutions over stunt politics
If leaders are serious about protecting Arizona’s water and power, they should pursue concrete fixes: require strict water and energy standards for new projects, charge for incremental water use, invest in reliable generation and transmission, and hold developers to closed‑loop cooling and real usage reporting. Politicians should stop playing for headlines — including those running for reelection — and start building rules that keep data centers here while protecting residents. Arizona doesn’t need a panic moratorium; it needs common sense rules, honest numbers, and the guts to build the infrastructure to match our growth.
