Arizona Leaders Rejected Statewide Data Center Moratorium
Governor Katie Hobbs and Congressman Andy Biggs opposed calls for a pause on new data center developments in Arizona.
Updated on Oct. 13, 2026 in Data Centers
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Governor Katie Hobbs and Congressman Andy Biggs have rejected a proposal for a statewide moratorium on new data centers. The push for a pause was initiated by Attorney General Kris Mayes, who is seeking to establish a new approval process and commission.
Why it matters
The debate centers on how Arizona manages its growing high-tech economy while balancing infrastructure demands and tax incentive structures. Governor Hobbs emphasizes the economic necessity of these facilities, whereas Attorney General Mayes advocates for stricter oversight.
The state budget includes a 3-year moratorium on new applications for data center tax incentives. Meanwhile, developers like Beale Infrastructure have sought to bypass local rejections by relocating projects to unincorporated areas, such as in Pima County.
The players
Katie Hobbs
The current Governor of Arizona who has cited the importance of data centers to the state's high-tech economy.
Andy Biggs
A U.S. Congressman who opposes a moratorium but advocates for developers to fund all required infrastructure.
Kris Mayes
The Attorney General of Arizona who is pursuing a new data center approval process and commission.
Beale Infrastructure
A private company currently developing three data center projects in Arizona.
The details
Attorney General Mayes is seeking to implement a more rigorous approval process for these facilities, while Congressman Biggs has proposed that developers should be required to fund all necessary infrastructure improvements. Projects previously rejected by cities like Tucson have been moved to unincorporated Pima County as firms navigate local and state-level policy hurdles.
Timeline
July 2026: Governor Hobbs commented on the state budget incentive freeze.
September 2026: Governor Hobbs and Attorney General Mayes commented on potential moratoriums.
October 6, 2026: Congressman Biggs discussed data centers following a gubernatorial debate.
October 14, 2026: Attorney General Mayes is scheduled to hold a town hall in Mesa.
The Tech Race
The state's shift away from tax incentives reflects a broader trend of states re-evaluating the infrastructure load and economic trade-offs associated with high-tech data centers. This move marks a departure from earlier aggressive incentive programs designed to capture market share in the competitive cloud infrastructure sector.
Residents may see shifts in local zoning as companies relocate projects from urban centers to unincorporated regions to avoid municipal oversight. Additionally, the potential elimination of tax subsidies could influence future utility costs and public infrastructure funding priorities in affected areas.
The takeaway
Arizona is currently navigating the tension between promoting a high-tech economy and managing the resource demands of expanding data centers. Residents should monitor upcoming municipal and state town halls to stay informed about how these projects may affect local land use and infrastructure funding.
Further reading
Learn more about the ongoing regional infrastructure debate on the Data Centers page.
Source note: This article includes information reported by abc15 Arizona.
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