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Arizona Attorney General Seeks Statewide Pause on New Hyperscale AI Data Centers

She says rising electricity costs plus a nearly 30% cut to Arizona’s Colorado River allocation create urgent water and power risks.

Overview

  • Attorney General Kris Mayes on Monday asked Governor Katie Hobbs and lawmakers to pass a law halting approvals of new data centers, with special focus on large hyperscale AI projects.
  • Mayes cited studies showing heavy resource strains, including a 2025 Ceres analysis that projects more than a 450% rise in data-center water demand in greater Phoenix if all planned projects proceed and an ASU study that found local temperatures can rise up to 4°F near data centers.
  • Local opposition is already blocking projects: the Pinal County Board of Supervisors last week denied rezoning for a large data center, and neighbors near a planned Menlo Digital 1-million-square-foot campus in Ahwatukee remain mobilized.
  • Mayes warns utilities’ crowded interconnection queues and proposed residential rate increases driven by new data-center power needs could shift infrastructure costs onto consumers, and she plans an Ahwatukee town hall on Oct. 14 to gather community input.
  • The call for a pause faces political hurdles in a divided state government after past Republican efforts to limit local control and allow co-located small modular reactors were vetoed by Gov. Hobbs, and the debate is part of a wider national reassessment of big data-center approvals.