Attorney General Mayes Calls for Pause on Arizona Data Centers

Arizona Attorney General Kris Mayes
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  • Attorney General Kris Mayes is calling for a statewide pause on new data center approvals and construction.
  • Mayes cited concerns about electricity demand, power bills, and water use.
  • Her office said some data centers can use tens or hundreds of millions of gallons of water each year.
  • Mayes wants Arizona to develop a plan for managing data center growth before additional projects are approved.
  • An October 14 town hall will focus on a planned hyperscale data center in Ahwatukee.

Tuesday, September 1, 2026 — Arizona Attorney General Kris Mayes is calling for a statewide pause on new data centers, saying the state needs a better plan for handling their growing demands for electricity and water.

Mayes announced the proposal on August 31Opens in a new tab., calling on state lawmakers and Gov. Katie Hobbs to pass legislation temporarily stopping approval and construction of new data centers, particularly large facilities designed for artificial intelligence.

“The only sane thing to do is to pause the approval of new data centers,” Mayes saidOpens in a new tab.. “Data centers are power- and water-intensive, and Arizona is challenged on both fronts right now.”

Her proposal comes as increasingly large data centers are being planned to handle artificial intelligence and other computing needs.

Data Centers Bring Large Power Demands.

Data centers are buildings filled with computer equipment used to process and store enormous amounts of digital information. Keeping all those computers operating requires large amounts of electricity.

Mayes has previously opposed double-digit percentage rate increase requests from Arizona Public Service Company and Tucson Electric Power Company.

According to the Attorney General’s Office, those proposed increases have been driven in part by the need for infrastructure to serve existing and planned data centers.

The office said Arizona utilities are already experiencing record electricity demand and warned that additional data centers could place more pressure on the electric grid and contribute to higher power bills.

Water Is Another Concern.

Water use is also part of the debate.

Large numbers of computers generate heat, which means data centers need cooling systems. Some of those systems rely heavily on water.

According to the Attorney General’s Office, individual data centers can use tens or even hundreds of millions of gallons of water each year for cooling. Power plants built to supply electricity to new data centers can also require water.

The office cited a 2025 analysis estimating that water demand associated with data centers could increase by more than 450 percent if all planned data center projects in the greater Phoenix area are constructed.

Mayes tied those concerns to Arizona’s broader water challenges, including reductions in the state’s Colorado River supplies.

“Arizona may be one of the most exposed states in the country to the negative impacts of excessive data center development,” Mayes said.Opens in a new tab.

Air Cooling Has Its Own Tradeoffs.

Using less water does not necessarily eliminate concerns surrounding data center cooling.

Some facilities use air instead of water to remove heat from their equipment.

The Attorney General’s Office cited an Arizona State University study that found data centers can increase temperatures in nearby areas by as much as four degrees Fahrenheit.

According to the office, even a one-degree increase can lead to additional air conditioning use and higher electricity bills.

Mayes Wants Growth Paused While Arizona Plans.

Mayes is not simply calling attention to individual projects. She is asking state leaders to temporarily stop new approvals while Arizona develops a broader approach to the industry’s growth.

She also pointed to opposition that has developed in some communities, particularly where residents believe they were not adequately consulted or where developers have proposed building their own power generation facilities near residential neighborhoods.

The proposed pause would require action by Arizona lawmakers and Gov. Hobbs.

Ahwatukee Town Hall Planned for October.

Mayes also announced that she will hold a town hall in Ahwatukee on October 14 concerning Menlo Digital’s planned hyperscale data center project.

The meeting will give concerned community members an opportunity to discuss the project.

Additional details about the town hall are expected to be announced in the coming weeks.

Photo of Kris MayesOpens in a new tab. by Gage Skidmore.  Licensed under the Creative Commons Attribution-Share Alike 2.0 Generic license.

Deborah

Since 1995, Deborah has owned and operated LegalTech LLC with a focus on water rights. Before moving to Arizona in 1986, she worked as a quality control analyst for Honeywell and in commercial real estate, both in Texas. She learned about Arizona's water rights from the late and great attorney Michael Brophy of Ryley, Carlock & Applewhite. Her side interests are writing (and reading), Wordpress programming and much more.

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