Fact check: Arizona's budget includes a 3-year pause preventing new data centers from getting state sales tax breaks. Dozens of data centers already approved for the tax incentives, which are still in state law, still get them. Source: azcentral.com/story/news/pol…

Also worth mentioning: Palo Verde uses 100% recycled wastewater for cooling. 💧

Arizona is now No. 4 nationally in total solar capacity and recently ranked No. 2 for utility-scale battery storage additions. ☀️ More power from more places should be the goal.

SUPER-SIZED: Palo Verde is Arizona’s only nuclear power plant and one of the largest generators in the U.S. Unit 1 first connected to the grid on this day in 1985.

This sales tax is something almost all states (42) already exempt data centers from, because they think it's so much it'd be onerous. Loudoun County, which gets $1.3 billion in tax revenue from data centers annually, doesn't charge a sales tax. It's technically true that this is "losing the state that much money every year" but only in worlds where the big additional tax doesn't scare any data centers away from the state. These are the numbers we have for how much a $1 billion data center would be taxed in different states each year. The yellow is this sales tax. Notice that in most places data centers aren't charged it but are still taxed a lot.

The expansion comes as Amazon operates drone deliveries in Phoenix and Zipline announced plans to launch service in the city earlier this year. bizjournals.com/phoenix/news…

A few highlights from this @phxbizjournal article: - Arizona’s data center incentive program has helped attract $8.1 billion in pledged capital investment since 2014. - Seven projects were pre-approved in fiscal year 2025 alone, representing more than $1.1 billion in projected investment. As one developer said: “I understand the state’s desire to evaluate the effectiveness of incentives, but it’s important that any changes preserve Arizona’s reputation as a stable and predictable place to invest. Long-term certainty is one of the biggest factors companies consider when making multi-billion-dollar infrastructure decisions.” bizjournals.com/phoenix/news…

This is unfortunate. A three-year moratorium on Arizona’s data center tax incentive is arbitrary, bad for business, and not supported by the facts. Arizona has had this incentive on the books since 2013. Lawmakers renewed it in 2021 and extended it through 2033. So what has changed since lawmakers renewed it? Well, it is certainly not the math. Critics estimate the incentive costs roughly $40 million in foregone state revenue. Meanwhile, the industry generated an estimated $863 million in state and local taxes and boosted Arizona’s GDP by $25 billion in 2023. From 2017 to 2021, it generated an estimated $2.3 billion in state and local tax revenue. The incentive has a cost. But ignoring the other side of the ledger is disingenuous. And it’s not as if the industry has moved backward. Many projects are moving toward lower-water designs, utilities have said data centers should pay their own way on power and infrastructure, and cities have added guardrails on zoning, noise, infrastructure, and project-specific conditions to ensure these projects have local oversight. So if the math did not change and the industry has more guardrails, what changed? The politics did. Data centers have become the convenient boogeyman for serious issues facing our state: housing affordability, water, utility costs, infrastructure, you name it. And the moratorium itself gives the game away. If this incentive is truly indefensible, make that case and repeal it. If the issue is accountability, cost, water, power, noise, or local impacts, debate reforms. But a three-year pause is splitting the difference. It lets policymakers say they are “doing something” about data centers without making the full case that Arizona should walk away from the program. That is not serious policy. It is political expediency. So when people ask, “Why shouldn’t we just get rid of the incentive?” here is the answer: because Arizona’s word has to mean something. This is not an argument that tax incentives are always good policy. Government shouldn’t be in the business of picking winners and losers. But Arizona also made a commitment. We told the industry that if they bring tens of millions of dollars in investment to Arizona, and often much more, we will make it worth their while. Going back on that commitment affects more than just data centers. It tells every other industry looking at Arizona that our commitments are only good until they become politically inconvenient. A stable regulatory environment matters. Companies do not make long-term investments when the rules change every time the political winds shift. Dozens of states offer similar data center incentives. Arizona is not competing with itself. A moratorium does not make the investment disappear. It just gives other states a better shot at landing it. Money goes where it is welcome. A moratorium risks sending billions in private investment, construction jobs, permanent jobs, utility payments, infrastructure improvements, and future tax revenue to other states. We are trading long-term competitiveness for short-term politics. It is bad policy, bad for business, and bad for Arizona.

When envisioning new developments or new technologies in Arizona, people often wonder what impact it will have on the state's water use? The reality is that vast majority of water in Arizona goes to agriculture. Can we start questioning that? Or is it taboo? (Graph from MAP)

We’ve taken autonomy to the streets. Now the skies. ☁️ @Walmart and @Wing are planning drone delivery in Phoenix by 2027. Driverless cars. Autonomous trucks. Drone delivery. Arizona keeps making room for the next generation of transportation, and everyday life in the Valley is getting more convenient, more accessible, and safer because of it. wing.com/news/wing-and-walma…

Just a reminder: vacant land and empty warehouses employ zero people. That is where many data center projects here are being sited. Yes, data centers create fewer permanent jobs than some other industries. But the tax revenue is real. In Loudoun County, Virginia, data centers occupy about 4% of commercial parcels but generate 38% of the county’s general fund revenue, helping fund public safety, roads, parks, libraries, schools, and lower tax pressure on homeowners. The job numbers matter. They are not the only thing. 🔗 loudoun.gov/m/faq

Three Arizonans will die today in car accidents. Most fatal accidents are caused by distracted driving or substance use. The deployment of autonomous vehicles will save lives. Thank you @Waymo and others who are bringing this technology to Arizona. azdps.gov/hp

.@Waymo is investing another $220 million in Arizona with a 5,458-acre site in Surprise. More private investment, safer roads, and more accessible transportation options. And all we had to do was just not say no to new technology. Seems like a good trade. Keep it comin'

Fair. Data centers are not exactly built for curb appeal. Like many warehouse and industrial facilities, they are large, often windowless buildings, and communities are right to care about design. But the fact that a comparison like this can be made shows how far public opinion has turned against them. Perception is not reality. These projects bring jobs, tax revenue, infrastructure investment, and long-term opportunity. They deserve scrutiny too. But the debate should be grounded in facts, not preconceived notions.