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Arizona Environmental Groups Urge Legislative Action on Data Centers

Amidst the ongoing legislative session, environmental groups are drawing attention to an array of pressing issues and are hopeful for bipartisan cooperation on some fronts. Each year, a coalition of local organizations compiles a list of environmental concerns they wish the state Legislature to tackle.

However, these appeals often face challenges in the Republican-dominated Legislature.

Comprising the coalition are entities like the Sierra Club’s Arizona chapter, Mi Familia Vota, Rural Arizona Action, Poder Latinx, and the Arizona Alliance for Retired Americans, among others. A significant focus for the coalition this year is the burgeoning data center industry.

Data Centers

In a press conference at the state Capitol, State Senator Priya Sundareshan (D-Tucson) raised concerns about the financial and environmental implications of data centers. “Who will bear the burden of paying for that, you know? Will the ratepayers have to bear the cost though higher utility bills in order to bring in the infrastructure? And what kinds of energy is going to be powering these data centers,” she questioned.

Advocates have also scrutinized the generous tax incentives awarded to these data centers, which amount to millions of dollars in tax breaks. New legislation addressing energy consumption, data centers, and water usage in Arizona is anticipated from Democrats this year.

Utilities and the Corporation Commission




The APS building in downtown Phoenix.

Environmental advocates are cautiously optimistic about potential bipartisan efforts to regulate utilities. The Arizona Corporation Commission has sanctioned multiple substantial rate hikes recently, and Arizona Public Service, the largest electricity provider, has backtracked on its clean-energy commitments.

Sandy Bahr, Sierra Club Grand Canyon Chapter lobbyist, emphasized the political clout of utilities, stating, “As you see the utilities, really significant influence at the Corporation Commission, where apparently they don’t understand that they’re actually supposed to regulate utilities.”

Some Republicans have shown interest in curbing utility power to prevent “corporate handouts.” Senator Sundareshan plans to reintroduce a bill to restrict utilities from utilizing ratepayer funds for lobbying and campaign activities. Representative Oscar De Los Santos (D-Laveen) pointed out that Arizona’s electricity bills rank among the highest nationally.

Demands Unchanged

The coalition’s other legislative aspirations remain consistent with previous years. The group continues to push for enhanced water protections, especially concerning groundwater.

“Climate change is affecting our daily lives in Arizona and is contributing to a host of issues, including prolonged drought, decreased water availability, increased pollution, and unhealthy air,” the coalition stated.





Siphons shift a mix of groundwater and CAP water from a ditch to a wheat field in Casa Grande.

Siphons shift a mix of groundwater and CAP water from a ditch to a wheat field in Casa Grande.

The coalition urges the Legislature to prioritize clean energy over fossil fuels and to grant state agencies the autonomy to regulate greenhouse gas emissions without legislative approval, a requirement under current law. Water conservation remains a pivotal issue in Arizona’s climate discussions.

The coalition advocates for conservation over expansion, promoting less water-intensive farming methods, safeguarding ephemeral waters, and restricting groundwater extraction in critical areas. Addressing “environmental injustice and racism” is also on their agenda, emphasizing equitable treatment in policy development due to the disproportionate impact on certain communities.

In Arizona, for instance, Native Americans face significant challenges with access to clean drinking water. “We ask the Arizona Legislature and Governor to take action to target investments in underserved communities that bear a disproportionate burden from climate change and pollution,” the group stated.