AG Kris Mayes calls for pause on new data centers, citing Arizona’s water and power crunch

Arizona Attorney General Kris Mayes on Monday called for a statewide pause on approving and building new data centers.

Mayes urged lawmakers and Gov. Katie Hobbs to pass legislation blocking new approvals until Arizona has a plan to manage the industry’s growth.

In June, Hobbs signed a three-year moratorium on tax incentives for data centers.

Mayes said the pause is necessary amid rising energy bills and after the Department of the Interior cut Arizona’s Colorado River water supplies by almost 30%.

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

The only sane thing to do is to pause the approval of new data centers. Data centers are power- and water-intensive, and Arizona is challenged on both fronts right now. More info on the October 14th town hall to come.

Full press release here: https://t.co/4TlVvdvZdN pic.twitter.com/TW3khzA7sf

— AZ Attorney General Kris Mayes (@AZAGMayes) August 31, 2026

The attorney general said rate increases have been driven in part by the need to build infrastructure to serve data centers. She argues adding more of the energy-intensive facilities could stress the electric grid and further raise power bills.

Researchers at Arizona State University recently found that data centers can boost air temperatures in downwind neighborhoods by as much as 4 degrees Fahrenheit.

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

Mayes will hold a town hall in Ahwatukee on Oct. 14 to hear from residents concerned about Menlo Digital’s planned hyperscale data center project.

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