Arizona governor rejects data center moratorium call as debate escalates

azfamily.com · Alexis Dominguez · September 9, 2026

# Arizona governor rejects data center moratorium call as debate escalates

Author: Alexis Dominguez Published: 2026-09-09T00:18:52.097000+00:00 Source: azfamily.com (azfamily.com) Language: en

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Arizona governor rejects data center moratorium call as debate escalates

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PHOENIX (AZFamily) — Two of Arizona’s most powerful Democrats are offering sharply different ideas about how to manage the rapid growth of the data center industry.

Attorney General Kris Mayes wants a pause on new data centers, but Gov. Katie Hobbs said Tuesday that she opposes a statewide moratorium.

The debate comes as Arizona weighs the economic promise of data centers against concerns over water, electricity and whether the power grid can keep up.

“It’s time to hit the pause button,” Mayes said.

Mayes’ call comes as artificial intelligence drives demand for data centers across Arizona.

“Let’s take a beat and let’s figure out where we are in regard to water and energy before we approve anymore of these data centers,” Mayes said.

The state has about 160 facilities, and as the projects have grown larger, so has the opposition.

“I think that data centers are a big concern for a lot of people, and at the state level we’re trying to take the right approach,” Hobbs said Tuesday morning.

Hobbs said she agrees the concerns are real but does not support a statewide pause.

“I don’t believe that a state moratorium is the right approach and will continue to to work to find the right balance,” Hobbs said.

The debate is also impacting APS. A spokesperson for the utility company said grid constraints have kept it from committing to additional data centers for the last two and a half years. In response, APS is proposing a 45% rate increase for data centers, while Microsoft is challenging that proposal.

“Data centers are an important part of the high tech economy that we are growing here in Arizona,” Hobbs said.

The governor argued these centers are not going away.

“Data centers pay for themselves,” Hobbs said. “They work for the taxpayers, not the other way around. They’re using water sustainably. They’re not making energy rates go up. They’re working with communities to address their concerns about having data centers in their backyards.”

Hobbs said the challenge is finding a balance between economic growth and the concerns raised by community members, utilities and state leaders.

Mayes said a pause is needed before that growth continues. Mayes does not have the authority to put a moratorium in place. Hobbs does have that authority, but it doesn’t look like that’s something she has in mind.

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