# Arizona Data Center Moratorium Tracker Source: https://savrn.com/data-center-moratorium-tracker/arizona Markdown alternate of the page above; the site index is https://savrn.com/llms.txt --- Arizona has 4 state-level data-center restrictions in force. 2 more bills are pending. 6 city and county measures are tracked here, 5 of them in force. Every entry below links to its primary source: a legislature page, a governor's office, a local government, or the reporting of record. Last updated October 2026 9 state-level measures 6 local measures 15 primary sources Arizona AZ In force 9 State-level measures on record, 4 in force 6 City and county measures, 5 in force 15 Primary sources cited on this page #33 of 50 states with anything on record, by measure count ## State-level measures in Arizona Every statewide moratorium, pause, siting restriction, or tax-incentive rollback in Arizona we can verify against a primary source. Strongest status first. | Measure | Status | What it does | Source | | --- | --- | --- | --- | | HB 2649computer data centers; tax incentives | In force 2021-04 | Arizona HB 2649 (55th-1st-regular): computer data centers; tax incentives. Last action 2021-04-20: Signed by Governor. | | | Arizona statewide (3-year pause on new data center tax exemptions, signed in FY budget)Arizona: On June 15, 2026 Gov. Katie Hobbs signed Arizona's ~$18B FY budget, which includes a three-year moratorium on NEW data center sales/use tax exemptions. | In force 2026-06 | On June 15, 2026 Gov. Katie Hobbs signed Arizona's ~$18B FY budget, which includes a three-year moratorium on NEW data center sales/use tax exemptions. Existing data centers keep their exemptions (5-10 year terms) and new facilities can still be built, they just cannot newly qualify for the incentive during the pause. The 2013-era incentive costs the state ~$38M/year; a mixed outcome curbing subsidies without restricting development. | | | FY2027 budgetThree-year pause on data center sales-tax exemption | In force 2026-07 | Signed by Gov. Hobbs; imposes a three-year moratorium on new data center sales-tax exemptions (Jul 1 2026 to Jun 30 2029). Already-approved projects keep their exemptions. | | | HB 4168Statewide moratorium on data centers through June 30, 2029 | In force 2026-07 | HB 4168, 3-year moratorium on new data center sales tax exemption applications, signed Jun 13. Saves ~\$57M. Developers submitted 113 applications in the 2 weeks before the pause (nearly as many as in the previous 13 years combined). The measure runs to June 30, 2029. | | | HB 2756Rules for extra high load factor customers | Proposed 2026 | Would direct the Corporation Commission to adopt rules for extra high load factor customers, including review of contracts before execution and cost-of-service studies. Introduced; pending. | | | Arizona (Senate disclosure bill)Arizona: On April 17, 2026, the Arizona Senate passed a bill that would require the state's major utilities to file reports every six months to the Arizona | Proposed 2026-04 | On April 17, 2026, the Arizona Senate passed a bill that would require the state's major utilities to file reports every six months to the Arizona Corporation Commission detailing new 'extra high load users' like data centers, including the number of new connections and connection requests. The bill now returns to the House for further action. This follows an ACC workshop on Large Load Users held April 16, 2026, where APS and SRP recommended new policies including a new extra high load factor (XHLF) rate, bring-your-own-power policies, and standard contracts requiring up-front financial support from data center customers. | | | SB 1463Arizona SB 1463 (Sen. Priya Sundareshan, D - Senate Minority Leader) would repeal the state's transaction privilege and use tax exemption for qualifying large | Failed / vetoed 2026-01 | Arizona SB 1463 (Sen. Priya Sundareshan, D - Senate Minority Leader) would repeal the state's transaction privilege and use tax exemption for qualifying large data centers. Gov. Katie Hobbs called for the repeal in her January 2026 State of the State address, despite having voted for the original tax break as a state senator in 2013. Hobbs's plan also proposes a penny-a-gallon fee on data center water use. Rep. Neal Carter (R-San Tan Valley) sponsored a House companion to sunset the exemption. The Department of Revenue estimates the incentives cost the state ~$38M/year. A two-thirds supermajority is required to repeal a tax incentive, making passage difficult despite some bipartisan support. Gov. Hobbs called for repeal in her State of the State address and proposed a penny-per-gallon fee on data center water use ($6.5M/year for water conservation). The exemption costs $38.5M/year (up from $1.4M in 2020, projected to reach $60M+ by FY2027). SB 1463 (repeal data center tax exemption) failed to advance; the GOP legislature kept the breaks in its budget, which Gov. Hobbs vetoed in May partly over data center breaks. Repeal needed a 2/3 supermajority that never materialized. | | | HB 2631Arizona: Governor Katie Hobbs called for repealing data center tax incentives which cost Arizona approximately $38.5 million per year. | Failed / vetoed 2026-02 | Governor Katie Hobbs called for repealing data center tax incentives which cost Arizona approximately $38.5 million per year. The bill would end the transaction privilege and use tax exemption for large data centers. Part of a broader national trend of states reconsidering data center tax breaks. The outcome remains pending. Gov. Hobbs called for repeal in her State of the State address and proposed a penny-per-gallon fee on data center water use ($6.5M/year for water conservation). The exemption costs $38.5M/year (up from $1.4M in 2020, projected to reach $60M+ by FY2027). HB 2631 (House companion tax-exemption repeal) failed like SB 1463; data center tax breaks were preserved in the GOP budget Hobbs vetoed. | | | HB 2795Arizona: In Arizona, HB 2795 would prohibit counties (<500K pop) from denying zoning approval for small modular reactors after federal design certification | Failed / vetoed 2026-02 | In Arizona, HB 2795 would prohibit counties (<500K pop) from denying zoning approval for small modular reactors after federal design certification and site permitting. Allows SMR construction colocated with large industrial users (data centers) without ACC environmental compatibility certificate. Cleared House on party-line vote Feb 26, advancing to Senate. Gov. Hobbs vetoed similar bill in 2025. HB 2795 (industry-friendly SMR county-zoning preemption) failed Senate third reading 15-13-2 on April 8, 2026 and never reached the governor. | | ## City and county moratoria in Arizona Most of the movement is local, where a building pause or permit halt does not need a legislative session. 6 tracked measures in Arizona, each with its source. Chandler 2025-12 In force Rejection of proposed AI data center The Chandler City Council voted 7-0 in December 2025 to reject a proposed AI data center after public opposition over noise, water and quality-of-life concerns. Hualapai Indian Reservation 2026-08 In force Tribal moratorium on data centers with no end date Tribal Council passed resolution opposing data center construction on reservation land, citing water scarcity on the Colorado River, light pollution, and wastewater concerns. Tribal sovereignty makes this effectively a ban on all reservation land. The measure has no end date by design. Pima County 2026-09 In force Proposed 120-day data center moratorium The Pima County Board of Supervisors voted 3-2 in September 2026 to approve a 120-day moratorium on data center projects in unincorporated areas that have not yet submitted permits, while staff drafts zoning rules. Project Blue and Project Gravel are exempt; the board may consider an extension. Pinal County 2026-08 In force La Osa data center rezoning rejected The Pinal County Board of Supervisors voted 4-1 on August 26, 2026 to reject the rezoning request and site plan for Vermaland's La Osa Energy Center outside Eloy. The scaled-down project called for 11 data center buildings, a 500-megawatt natural gas plant and battery storage serving about 1 gigawatt of demand. Tucson 2025-08 In force Rejection of Project Blue data center annexation The City Council voted 7-0 on Aug. 6, 2025 to halt annexation for Project Blue, a 290-acre Amazon-linked data center campus; the city later adopted strict rules and is exploring a ban. Mesa 2025-07 Proposed Proposed amendments to Chapters 6, 7, 22, 31, 32, and 86 of Title 11 of the Mesa City Code pertaining to Data Centers and Planned Area Development Overlay Mesa Ordinance 25-0566 on data center zoning: Proposed amendments to Chapters 6, 7, 22, 31, 32, and 86 of Title 11 of the Mesa City Code pertaining to Data Centers and Planned Area Development Overlay Districts. The amendments include Status Agenda Ready as of 2025-07-01. ## Would you like the weekly update? Every week we re-verify every state and local measure on this map and publish what changed. You get one email when it goes out. Also send me Receive a short introduction on days 3, 7 and 14, plus the updates you select. Unsubscribe in one click. [Privacy](https://savrn.com/privacy) · You're on the list. The next weekly update will land in your inbox when it publishes. You are subscribed. [Read the latest tracker](https://savrn.com/data-center-moratorium-tracker) ### Where Arizona stands Across the whole tracker we hold 334 state-level measures in 49 states and 1253 city and county measures, against 1419 primary sources. Arizona accounts for 9 of the state-level measures and 6 of the local ones. By total measures on record it is #33 of the 50 states and DC carrying any tracked action, and #36 by city and county measures alone. Ranking is by count of sourced entries in this dataset, so it measures documented activity, not the size of the buildout. ## Sources for Arizona 15 citations behind the entries above. Each opens in a new tab. - Statewide · HB 2649 — computer data centers; tax incentives (In force, 2021-04) [apps.azleg.gov →](https://apps.azleg.gov/BillStatus/BillOverview/75304?SessionId=123) - Statewide · Arizona statewide (3-year pause on new data center tax exemptions, signed in FY budget) — Arizona: On June 15, 2026 Gov. Katie Hobbs signed Arizona's ~$18B FY budget, which includes a three-year moratorium on NEW data center sales/use tax exemptions. (In force, 2026-06) [news.bloomberglaw.com →](https://news.bloomberglaw.com/ip-law/arizona-data-center-tax-incentive-pause-signed-by-governor-hobbs) - Statewide · FY2027 budget — Three-year pause on data center sales-tax exemption (In force, 2026-07) [azcapitoltimes.com →](https://azcapitoltimes.com/news/2026/07/09/data-centers-dominated-2026-session-lawmakers-answered-with-3-year-tax-incentive-pause/) - Statewide · HB 4168 — Statewide moratorium on data centers through June 30, 2029 (In force, 2026-07) [news.bloombergtax.com →](https://news.bloombergtax.com/daily-tax-report-state/arizona-data-center-tax-incentive-pause-signed-by-governor-hobbs) - Statewide · HB 2756 — Rules for extra high load factor customers (Proposed, 2026) [afslaw.com →](https://www.afslaw.com/perspectives/alerts/state-regulation-data-centers-2026-shifting-landscape) - Statewide · Arizona (Senate disclosure bill) — Arizona: On April 17, 2026, the Arizona Senate passed a bill that would require the state's major utilities to file reports every six months to the Arizona (Proposed, 2026-04) [azcc.gov →](https://azcc.gov/news/home/2026/04/20/acc-large-load-data-center-workshop-highlights) - Statewide · SB 1463 — Arizona SB 1463 (Sen. Priya Sundareshan, D - Senate Minority Leader) would repeal the state's transaction privilege and use tax exemption for qualifying large (Failed / vetoed, 2026-01) [azgovernor.gov →](https://azgovernor.gov/office-arizona-governor/news/2026/05/governor-katie-hobbs-vetoes-partisan-budget-would-force-chaotic) - Statewide · HB 2631 — Arizona: Governor Katie Hobbs called for repealing data center tax incentives which cost Arizona approximately $38.5 million per year. (Failed / vetoed, 2026-02) [azleg.gov →](https://www.azleg.gov/legtext/57leg/2R/bills/HB2631P.htm) - Statewide · HB 2795 — Arizona: In Arizona, HB 2795 would prohibit counties (<500K pop) from denying zoning approval for small modular reactors after federal design certification (Failed / vetoed, 2026-02) [azleg.gov →](https://www.azleg.gov/legtext/57leg/1R/bills/HB2795P.htm) - Chandler — Rejection of proposed AI data center (In force, 2025-12) [deseret.com →](https://www.deseret.com/politics/2026/01/22/tuscon-fights-back-against-data-center-proposal-after-chandler-rejected-another-proposal-last-year/) - Hualapai Indian Reservation — Tribal moratorium on data centers with no end date (In force, 2026-08) [knau.org →](https://www.knau.org/knau-and-arizona-news/2026-08-24/hualapai-tribe-passes-resolution-opposing-data-center-construction-on-the-reservation) - Pima County — Proposed 120-day data center moratorium (In force, 2026-09) [kjzz.org →](https://www.kjzz.org/fronteras-desk/2026-09-23/pima-county-passes-120-day-moratorium-on-future-data-center-projects) - Pinal County — La Osa data center rezoning rejected (In force, 2026-08) [kjzz.org →](https://www.kjzz.org/politics/2026-08-26/pinal-county-rejects-massive-la-osa-data-center-residents-want-more-rules-for-future-projects) - Tucson — Rejection of Project Blue data center annexation (In force, 2025-08) [azluminaria.org →](https://azluminaria.org/2025/08/06/tucson-city-council-rejects-project-blue-amid-intense-community-pressure/) - Mesa — Proposed amendments to Chapters 6, 7, 22, 31, 32, and 86 of Title 11 of the Mesa City Code pertaining to Data Centers and Planned Area Development Overlay (Proposed, 2025-07) [mesa.legistar.com →](https://mesa.legistar.com/LegislationDetail.aspx?ID=22667&GUID=90C9EA44-63D1-45C9-87D3-7536D9CF91F2) [See all 1419 sources across every state →](https://savrn.com/data-center-moratorium-tracker/sources) ## What does bind large loads in Arizona A moratorium is only one way a data center gets stopped. The grid operator decides whether it can connect at all, and on what terms. Arizona sits in 2 footprints. Non-RTO utility territoryDominant No RTO or ISO market here. Interconnection terms, study queues and curtailment rights for a large load are set by the individual utility and its state commission. SPP Speed in exchange for curtailability under the approved HILL framework. APS/SRP/TEP vertically integrated (WECC); SPP's RTO West expansion (live 4/1/2026) added SPP RTO territory in Arizona per SPP. [See the full Data Center Grid Operator Watchlist →](https://savrn.com/data-center-grid-operator-watchlist) ## States next door 5 of the 5 states bordering Arizona have at least one data-center measure on record. Restrictions tend to travel between neighbors, so this is usually where the next one comes from. [California 65](https://savrn.com/data-center-moratorium-tracker/california) [Colorado 27](https://savrn.com/data-center-moratorium-tracker/colorado) [New Mexico 16](https://savrn.com/data-center-moratorium-tracker/new-mexico) [Nevada 13](https://savrn.com/data-center-moratorium-tracker/nevada) [Utah 12](https://savrn.com/data-center-moratorium-tracker/utah) ## Data centers in Arizona The US Data Center Map identifies 201 facilities run by 53 operators in Arizona, each one placed from primary sources and listed by city and by operator, with the measures on this page beside them. [Open the Arizona data center map →](https://savrn.com/data-center-map/arizona) · [The US Data Center Map →](https://savrn.com/data-center-map) [Alabama](https://savrn.com/data-center-moratorium-tracker/alabama) [Alaska](https://savrn.com/data-center-moratorium-tracker/alaska) [Arizona](https://savrn.com/data-center-moratorium-tracker/arizona) [Arkansas](https://savrn.com/data-center-moratorium-tracker/arkansas) [California](https://savrn.com/data-center-moratorium-tracker/california) [Colorado](https://savrn.com/data-center-moratorium-tracker/colorado) [Connecticut](https://savrn.com/data-center-moratorium-tracker/connecticut) [Delaware](https://savrn.com/data-center-moratorium-tracker/delaware) [Florida](https://savrn.com/data-center-moratorium-tracker/florida) [Georgia](https://savrn.com/data-center-moratorium-tracker/georgia) [Hawaii](https://savrn.com/data-center-moratorium-tracker/hawaii) [Idaho](https://savrn.com/data-center-moratorium-tracker/idaho) [Illinois](https://savrn.com/data-center-moratorium-tracker/illinois) [Indiana](https://savrn.com/data-center-moratorium-tracker/indiana) [Iowa](https://savrn.com/data-center-moratorium-tracker/iowa) [Kansas](https://savrn.com/data-center-moratorium-tracker/kansas) [Kentucky](https://savrn.com/data-center-moratorium-tracker/kentucky) [Louisiana](https://savrn.com/data-center-moratorium-tracker/louisiana) [Maine](https://savrn.com/data-center-moratorium-tracker/maine) [Maryland](https://savrn.com/data-center-moratorium-tracker/maryland) [Massachusetts](https://savrn.com/data-center-moratorium-tracker/massachusetts) [Michigan](https://savrn.com/data-center-moratorium-tracker/michigan) [Minnesota](https://savrn.com/data-center-moratorium-tracker/minnesota) [Mississippi](https://savrn.com/data-center-moratorium-tracker/mississippi) [Missouri](https://savrn.com/data-center-moratorium-tracker/missouri) [Montana](https://savrn.com/data-center-moratorium-tracker/montana) [Nebraska](https://savrn.com/data-center-moratorium-tracker/nebraska) [Nevada](https://savrn.com/data-center-moratorium-tracker/nevada) [New Hampshire](https://savrn.com/data-center-moratorium-tracker/new-hampshire) [New Jersey](https://savrn.com/data-center-moratorium-tracker/new-jersey) [New Mexico](https://savrn.com/data-center-moratorium-tracker/new-mexico) [New York](https://savrn.com/data-center-moratorium-tracker/new-york) [North Carolina](https://savrn.com/data-center-moratorium-tracker/north-carolina) [North Dakota](https://savrn.com/data-center-moratorium-tracker/north-dakota) [Ohio](https://savrn.com/data-center-moratorium-tracker/ohio) [Oklahoma](https://savrn.com/data-center-moratorium-tracker/oklahoma) [Oregon](https://savrn.com/data-center-moratorium-tracker/oregon) [Pennsylvania](https://savrn.com/data-center-moratorium-tracker/pennsylvania) [Rhode Island](https://savrn.com/data-center-moratorium-tracker/rhode-island) [South Carolina](https://savrn.com/data-center-moratorium-tracker/south-carolina) [South Dakota](https://savrn.com/data-center-moratorium-tracker/south-dakota) [Tennessee](https://savrn.com/data-center-moratorium-tracker/tennessee) [Texas](https://savrn.com/data-center-moratorium-tracker/texas) [Utah](https://savrn.com/data-center-moratorium-tracker/utah) [Vermont](https://savrn.com/data-center-moratorium-tracker/vermont) [Virginia](https://savrn.com/data-center-moratorium-tracker/virginia) [Washington](https://savrn.com/data-center-moratorium-tracker/washington) [Washington, DC](https://savrn.com/data-center-moratorium-tracker/washington-dc) [West Virginia](https://savrn.com/data-center-moratorium-tracker/west-virginia) [Wisconsin](https://savrn.com/data-center-moratorium-tracker/wisconsin) [Wyoming](https://savrn.com/data-center-moratorium-tracker/wyoming) ### How to read this page In force = a moratorium, siting restriction, or tax-incentive rollback that is currently enacted, by statute or executive order. Paused = a temporary hold on new incentives or applications. Proposed = introduced and still pending. Failed / vetoed = died in committee, was voted down, or was vetoed. This page is generated from the same primary-sourced dataset as the national [U.S. Data Center Moratorium Tracker](https://savrn.com/data-center-moratorium-tracker) and is re-checked on the same weekly cycle, whether or not anything changed. Legislative status changes quickly; it is informational, not legal advice. Spot something out of date in Arizona? [Tell us](https://savrn.com/contact). Companion references: the [Data Center Grid Operator Watchlist](https://savrn.com/data-center-grid-operator-watchlist) for the interconnection and curtailment rules that bind here, the [Data Center Water Tracker](https://savrn.com/data-center-water-tracker) for water mandates, and the [Data Center Delay Watchlist](https://savrn.com/data-center-delay-tracker) for named projects. ## Why Arizona is pushing back The objections repeat from state to state: strain on the electric grid, water drawn for cooling, and the sense that a facility takes local resources without giving much back. SAVRN builds AI factories designed around those three objections: on-site power that does not lean on the public grid, direct-to-chip cooling that does not consume municipal water, and a training institute that puts local people to work inside the building. [See how a SAVRN factory works](https://savrn.com/system) [Talk to us about a Arizona site](https://savrn.com/engage)