Data centers have gotten a bad rap lately, but here’s why we think they are actually good for Arizona. It starts with jobs.

Advertisement

Arizona data centers have generated a lot of political heat in recent weeks.

At her State of the State address, Gov. Katie Hobbs questioned the social benefit of data centers and signaled an interest in reinstating a sales tax on data center equipment purchases. Neal Carter, a Republican state legislator, agrees with Hobbs. So too might Republican state legislator Leo Biasiucci.

A month ago, the Chandler City Council unanimously rejected a proposed data center despite the lobbying efforts of former U.S. Sen. Kyrsten Sinema. Hundreds of Chandler residents filled the auditorium for the vote, and 256 residents submitted online comments opposing the data center.

In Tucson, the city council unanimously rejected connecting a large data center (Project Blue) to the city’s water system. Attorney General Kris Mayes is now looking deeper into Project Blue, Tucson Electric Power and the Arizona Corporation Commission.

Here at The Arizona Republic, the opinion section published an editorial on Jan. 20 (Arizona data centers bring hidden water risks), and the news section printed an article on Jan. 18 (Gas power plant for data center project stirs concerns in Surprise), both of which cast data centers in a less-than-flattering light.

And earlier this week, handfuls of speakers at the Corporation Commission blamed data centers for proposed APS rate hikes.

Each situation has its own complexities and justifications (and I’ll get into some of them in future weeks). Some opposition is more factually substantiated than others. But they’re all rooted in a suspicion that these large warehouses of computer servers that power the modern world are no longer great things for Arizona.

Arizona data center benefits starts with jobs

If we may be so bold, and to set the stage for future articles here at the Republic, here are a few reasons why Arizona should celebrate our position as a top 10 state for data centers:

• Jobs. It’s not just the people employed by data centers (many of which are high-paying jobs), but the ancillary jobs needed by data centers: contracted electricians, carpenters, pipefitters, HVAC technicians, etc. PricewaterhouseCoopers (“PwC”) found that data centers accounted for 81,000 jobs in Arizona as of 2023.
• Taxes.  It’s the start of the state legislative season and, sadly, this is going to be one of those years in which we hear lots about the things we can’t afford.  But data centers help that equation.  According to the same PwC report, data centers generated $2.3 billion in state and local tax revenue from 2017 to 2021.  That means money for schools and roads.  Or lower state income taxes (as happened).
• Tech center. It’s a truism that tech begets other tech. We’ve said this as we’ve celebrated the massive expansions of TSMC and Intel. It’s also true of data centers. And if proprietors of data centers – companies like Amazon and Microsoft – are happy with Arizona as a data center home, they’ll likely consider Arizona a home for other tech investments.
• Buying unwanted power. Normal businesses use power during the day (8 am-5 pm). Homes use power during the evening (5-11 pm). But few users demand power overnight (11 pm-8 am). This means we often have to dump unsold power. But data centers need power around the clock, and they can buy that overnight power, generating revenue for Arizona utility companies that then doesn’t have to be generated from Arizona households.

The top-ranked Arizona Wildcats hit the road for a Big Monday matchup against No. 13 BYU. The Wildcats won in Provo last season.

Here’s all the info you need to watch, listen to or follow the game online. Come chat with us!

Arizona-BYU game time, details:

How can I watch Arizona-BYU?

Arizona-BYU will be shown on ESPN. Jon Sciambi (play-by-play) and Fran Fraschilla (analyst) will be calling the game.

How can I stream Arizona-BYU online?

The stream of Arizona-BYU can be viewed on ESPN.com.

How can I listen to Arizona-BYU on the radio?

How can I follow Arizona-BYU?

Arizona-BYU pregame coverage:

MIAMI, AZ — Late last week, officials with Arizona’s Department of Emergency and Military Affairs (DEMA) and the Federal Emergency Management Agency (FEMA) were back in Gila County, meeting with state and local leaders to reassess damage created by deadly flooding in September and October last year.

Late last year, Arizona Governor Katie Hobbs ‘ office announced that FEMA had denied their request for a Major Disaster Declaration, which would have provided critical funding for the towns of Miami, Globe, and the rest of Gila County.

Globe Mayor Al Gameros told ABC15 they’ve estimated their damage to be around $96 million, with Miami leaders telling ABC15 the damage is about $56 million.

If FEMA approves funding for towns, the percentage of the overall cost that is owed by each town is reduced substantially, critical for towns with smaller populations.

Nick covered the initial round of flooding in late September 2025 and returned to Globe in late October to get an update on the recovery there.

Late last week, ABC15 returned to Gila County – this time to Miami – to see how leaders there were rebounding, nearly four months after the flooding that killed three people.

“We had some floods here, but it wasn’t anything like that,” explains Miami Mayor Gil Madrid, who was also born and raised in the small Gila County mining town.

“It was unbelievable. Unbelievable. And sad to see what was going on.”

It’s damage the Mayor says totals about $56 million, but as of right now, FEMA isn’t helping cover any of it.

In December 2025, FEMA officials sent the state a letter, denying their request for a major disaster declaration, saying in part, “this event was not of such severity and magnitude as to be beyond the capabilities of the state and affected local governments.”

“How could they not stand with us in that disaster?” questioned Mayor Madrid.

So the Town of Miami sent its own appeal to FEMA, citing not just the flooding events in September and October last year, but also another major natural disaster – The Telegraph Fire in 2021, which burned more than 180,000 acres, creating larges areas of erosion on the Pinal Mountains, that helped send flood water, tree limbs, and other debris down the mountains, and into areas like downtown Globe and Miami.

ABC15 surveyed the area of Mackey Camp Road and saw several areas covered in dirt and sand that had accumulated in the nearly five years since the fire.

For Miami Town Manager Alexis Rivera, who reached out directly to ABC15 after seeing his follow-up series in Globe, not having that funding from FEMA means money from other critical departments and resources will have to wait for key projects to begin, things like new work trucks, new police vehicles, and infrastructure improvements.

“We are going to keep fighting,” says Rivera.

ABC15 reached back out to FEMA late last week and received this statement:

FEMA has received the State of Arizona’s appeal related to the September 25–27, 2025 severe storms and flooding. The appeal is currently under review in accordance with the Robert T. Stafford Disaster Relief and Emergency Assistance Act. FEMA has sent staff to Arizona to join state and local representatives to validate new information contained in the State’s appeal.  There is no timeline for appeal determinations, as each request is evaluated based on the specific circumstances.