Arizona
Arizona escalated from proposals to enacted policy: Gov. Hobbs signed a state budget in June 2026 that imposes a three-year moratorium (July 1, 2026-June 30, 2029) on new data-center sales-tax exemptions, even as the contested Project Blue campus began construction on unincorporated Pima County land (MultiState, KPMG, AZ Republic).
ILens Signals
Civic/Governance Barriers activates on moratorium-class action (C1), meaningful 2026 race (C3) — governance instruments on the electoral, legislative, and regulatory surface (protocol §10; Overview Civic breakout). Water/Geology is dominant (Colorado River cuts, aquifer draw, potable-water bridge before reclaimed water; Hobbs' per-gallon fee). Capital Flows/Insurability is a strong secondary stressor given the enacted three-year repeal of the ~$38-57M/yr sales-tax subsidy and the structural unincorporated-county authority gap that lets rejected projects proceed on adjacent land, shifting fiscal/insurability exposure (KPMG, Cliff, AZ Luminaria). Energy/Power (TEP capacity, grid strain) also central.
IIKey 2026 Races
2026 Governor (incumbent Katie Hobbs seeking a second term): data centers are a central campaign and budget plank. Hobbs made ending the Computer Data Center sales-tax exemption and adding a per-gallon water fee core to her 2026 agenda; the enacted FY2026 budget (HB 4168 / SB 1861) imposes a three-year pause on new CDC certifications (July 1, 2026–June 30, 2029), which Hobbs frames as election-year fiscal and water policy against a competitive general-election field (Tucson.com, AZ Republic budget/election, KTAR, AZ Legislature SB 1861 summary).
IIIMoratorium · Ban Status
No siting moratorium, but Arizona enacted a three-year tax-incentive moratorium via the FY2026 budget: no new Computer Data Center (CDC) certification applications accepted July 1, 2026-June 30, 2029 (applies from and after June 30, 2026), preserving ~70 already-certified projects (KPMG, technewsday, AZ Republic). Earlier session pause-style bills stalled (Arizona Capitol Times).
IVRatepayer · Cost-Shift Legislation
The enacted three-year tax-exemption moratorium is the marquee fiscal action; Hobbs also proposed a per-gallon water user fee feeding a Colorado River Protection fund (KJZZ, MultiState). Project Blue's power was routed through an Arizona Corporation Commission-approved TEP agreement (AZ Luminaria).
VBallot Measures
None identified. A Marana referendum effort was underway in early 2026 over a data-center rezoning, but no Arizona statewide or confirmed local data-center measure surfaced for Nov. 2026 (US News).
VITop Contested Sites
Project Blue (Beale Infrastructure/Blue Owl, AWS end-customer; $3.6B, 290 ac, up to 600 MW / 2M sq ft near Tucson) — rejected for annexation by Tucson in Aug. 2025, then began clearing/grading on unincorporated Pima County land in April 2026 amid protests that blocked trucks; targeted operational 2028 (AZ Luminaria, Real Estate Daily News, DatacenterMap). Chandler Price Innovation Campus ($2B) rejected 7-0, Dec. 2024 (seed-confirmed via prior rejections per prior reporting). Marana ~600-acre rezoning approved by council in Jan. 2026 (US News).
VIITalent · Workforce
Project Blue promises ~180 permanent jobs (~$64K avg) against 3,000+ construction jobs — a jobs-promised-vs-delivered flashpoint in local debate (Arizona Daily Star, Pima County FAQ).
VIIIData Center Cluster Size
Major hub — dense Phoenix metro (Chandler, Mesa, Goodyear) plus emerging Tucson/Pima and Marana corridor; ~70 projects hold existing tax certifications (AZ Republic).
IXKey Quote
"We said no!!" protesters chanted as Project Blue construction began, citing water and electricity use (AZ Luminaria).