Arizona Weighs Data Center Tax Break Pause: States of Play

June 10, 2026, 5:54 PM UTC

Arizona Eyes Data Center Tax Break Pause

Arizona lawmakers have proposed a three-year pause on new sales tax breaks for data centers, which would be the most restrictive state-level response to the industry yet, Daniel Moore reports.

The proposed moratorium, tucked into an $18 billion budget deal announced Tuesday by Republican leaders, comes after Gov. Katie Hobbs (D) requested the legislature repeal the tax incentive.

Such a lengthy pause in incentives reflects growing anger at the industry in a state that has the seventh-most data centers in the country. Arizona has drawn major developers including Microsoft, Amazon, Google, ...

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