Kris Mayes calls for no new AI data centers as Arizona faces water, power crunch

Arizona Democratic Attorney General Kris Mayes is calling for a statewide pause on new data centers, specifically those aimed at powering artificial intelligence systems, amid rising energy costs and the federal government’s plan to cut 30% of Arizona’s Colorado River supply. 

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

Mayes also said she is planning to hold a town hall in Ahwatukee on Oct. 14 to hear from members of the community about a planned data center project there. 

The Menlo Digital hyperscale data center is a 38-acre campus featuring a one-million-square-foot data center planned in the Ahwatukee area. It has been facing criticism from locals. 

The company has switched other properties from office space to data centers in other states and has had its data centers purchased by corporations like Amazon for $65 million.  

The rapid construction of giant data centers has become a major point of controversy in Arizona and nationwide. 

Across the country, politicians and lawmakers are trying to get ahead of the issue, as data center popularity continues to diminish ahead of the midterm elections. 

Locally, high-profile data center projects have faced public outlash leading to some of those projects failing to get approval as developers continue to push for the projects. 

President Donald Trump has pushed heavily for data centers, as his two sons have invested in the companies behind them.

“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.” 

Mayes is calling for state lawmakers and Gov. Katie Hobbs to pass legislation to halt data center approvals until the state has a plan to monitor and control their growth. 

Getting legislative approval for such an idea will likely be an uphill battle. 

Republican leadership in the Arizona House of Representatives have pushed the past few years for legislation aimed at helping data center power demand by disallowing counties to regulate them and allow the colocation of small modular nuclear reactors, a technology that is largely unproven. 

That legislation was ultimately vetoed by Hobbs. 

In her announcement, Mayes cited an analysis by the sustainability non-profit Ceres that estimates a more than 450% increase in water demand if all planned data center projects in the greater Phoenix area are built. 

Mayes also cited an Arizona State University study that found that data centers can raise nearby neighborhood temperatures by up to four degrees Fahrenheit.