Arizona Gov. Katie Hobbs is pushing to cut down on lucrative state tax incentives for data centers.
The Arizona Department of Revenue estimated the incentives lose the state $38M a year.
“It’s time we make the booming data center industry work for the people of our state, rather than the other way around,” Hobbs said during her State of the State address on Monday, which opened the state legislature’s 2026 season.
The incentives, along with inexpensive power, have been key to building the region’s status as a booming data center market.
Companies that spend at least $50M on the construction or expansion of a…