Arizona
Active Bans / MoratoriumsArizona's statewide debate sharpened in September 2026: Attorney General Kris Mayes called for a statewide moratorium on new data center approvals, while Governor Katie Hobbs opposed a blanket pause; APS simultaneously proposed a 45% rate increase for data centers, citing grid constraints. On the local level, Pinal County supervisors voted 4-1 in the week of September 7-10, 2026 to reject Vermaland's 3,300-acre data center campus south of Eloy — which would have been Arizona's largest — even after the developer scaled it from 59 buildings and two gas plants down to 11 buildings and one. Tucson's 'Community Energy and Water Accountability' ordinance (enacted August 2026) remains the state's most prominent municipal restriction. Pima County's Board of Supervisors narrowly approved a 120-day moratorium on new data center projects in unincorporated areas on September 22, 2026, while it drafts code requirements that could include closed-loop cooling, noise reduction and design standards.
Legislation
| Bill | Title | Status |
|---|---|---|
| FY2027 Budget | 3-year pause on new data center sales tax exemption applications (July 1, 2026 – June 30, 2029) | Signed by Gov. Hobbs — June 13, 2026 (effective July 1, 2026) |
| HB 2756 | Data Center Cost-Shifting Protection Act | Died — Legislature adjourned sine die June 13, 2026 without a final Senate floor vote |
| HB 2873 | Referendum petition withdrawal — would have allowed petitions to be withdrawn before a vote (response to the Marana "Project Blue" referendum) | Vetoed by Gov. Hobbs — July 1, 2026 |
Local Actions
Ongoing restrictions limiting data centers to planned developments only. Concerns over noise and limited job creation.
City advancing code amendment to regulate large-scale data centers; public meetings since Feb 2026
City approved its first large-scale data center rules 6-1. Facilities over 25,000 sq ft or 20 MW must maintain a half-mile residential buffer, cap height at 50 feet, disclose energy sources, stay within potable water limits, and obtain mayor and council approval.
Board of Supervisors narrowly approved a 120-day moratorium on September 22, 2026 on new data center projects in unincorporated areas — pausing permits and project advancement while the county drafts code requirements that could include closed-loop cooling, noise reduction and design standards, with draft code text expected by December.