PHOENIX (KVOA) — Attorney General Kris Mayes is pushing for an immediate halt to all new data center developments across the state, citing mounting concerns over skyrocketing energy costs and dwindling water resources.
Mayes announced her call for the statewide pause and urged both state lawmakers and Gov. Katie Hobbs to enact legislation blocking further data center approvals until Arizona establishes a comprehensive management strategy for the industry's expansion. According to the Attorney General's Office, the push comes after the Department of Interior slashed Arizona's Colorado River water allocations by nearly 30 percent.
"The only sane thing to do is to pause the approval of new data centers," Mayes said. "Data centers are power- and water-intensive, and Arizona is challenged on both fronts right now."
Mayes previously opposed double-digit rate hike proposals from Arizona Public Service Company and Tucson Electric Power Company earlier this year. Those proposed increases stemmed partly from infrastructure needs to support current and future data center operations, according to the Attorney General's Office.
Arizona's utility companies are already experiencing unprecedented electricity demand. Adding more energy-hungry data centers could strain the state's electrical grid and drive power bills even higher, officials stated.
Water consumption presents another major challenge, according to the Attorney General's Office. Data centers can consume tens or even hundreds of millions of gallons annually for cooling purposes. New power plants constructed to supply electricity to these facilities may also require substantial water to function, officials said.
A 2025 analysis projected that water demand tied to data centers could spike by more than 450 percent if all proposed projects in the greater Phoenix area move forward. Data centers using air-cooling systems instead of water can elevate temperatures in surrounding neighborhoods, according to the office.
An Arizona State University study found that data centers can increase nearby temperatures by as much as four degrees Fahrenheit. Even a one-degree temperature rise can boost air conditioning usage and utility bills, the study showed.
"Arizona may be one of the most exposed states in the country to the negative impacts of excessive data center development," Mayes said. "The Colorado river is in serious distress, and Wall Street firms are seeking to ship La Paz County's groundwater to Phoenix to fuel the Valley's growth – against the wishes of the county's residents and leaders. We owe it to our communities, homeowners, and future generations of Arizonans to better manage our water and power needs before any new data center approvals are issued."
The Attorney General's Office said data centers have triggered strong community pushback, particularly in areas where residents weren't adequately consulted and where developers plan to construct onsite power generation near homes. Mayes will host a town hall in Ahwatukee on October 14 to hear from residents concerned about Menlo Digital's proposed hyperscale data center project, according to the release.
Additional information about the town hall will be released in the coming weeks.