Arizona one of the top states for data centers
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Arizona is one of the leading states in the nationwide data center boom.
The big picture: A recent Pew Research Center analysis shows that as of February, Arizona had more data centers operational or planned than most other states.
By the numbers: Arizona has 98 data centers currently operating — placing it in the top 10 states, per Pew — and 86 planned or under construction, trailing only Virginia, Texas, Illinois and Georgia.
The intrigue: Data centers have become controversial, largely over concerns about energy and water use, and there's growing backlash nationally and in Arizona.
- Opponents unsuccessfully fought the Project Blue data center outside Tucson and a proposed facility in Marana.
- Meanwhile, opponents derailed a proposed rezoning for a new data center in Chandler backed by former U.S. Sen. Kyrsten Sinema.
- Gov. Katie Hobbs proposed eliminating a tax subsidy for large data centers, though she's faced pushback from GOP lawmakers.
State of play: A report by the real estate and investment management company JLL cited Phoenix as the No. 2 market for planned data centers in mid-2025.
- JLL showed Arizona as one of the top states for incoming data centers at the end of last year.
What we're watching: The Arizona Corporation Commission is contemplating new policies to ensure that costs for energy and new infrastructure for data centers aren't passed onto other ratepayers.
Zoom in: Danny Seiden, president and CEO of the Arizona Chamber of Commerce, told Axios he's seeing a slowdown in data center development here and in other high-growth states.
- He attributed that to increased deliberation over data center energy use by utilities and developers and especially to local opposition.
- Case in point: Outside groups attempted to refer rezoning for a proposed data center in Marana to the ballot.
Energy needs will be the biggest "choke point" for the industry, said Russell Smoldon, an Arizona lobbyist representing the national Data Center Coalition.
- He told Axios a slowdown is coming, noting that it would take time to see one materialize because of how long it takes to build the facilities.
Zoom out: Virginia is the top data center state in the U.S., with Texas establishing itself as the clear No. 2.
- On the other side, at least 10 states are pushing for data center moratoriums after Maine Gov. Janet Mills on Friday vetoed what would've been the first in the nation.