Arizona lawmakers weigh ending tax break for data centers
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- (Last Updated On: January 15, 2026)
As data centers draw ire from neighborhood groups across the state, the Arizona Legislature may consider nixing a lucrative tax incentive for the tech facilities powering AI.
Why it matters: Arizona has become one of the top markets for data centers in the country, leading a bipartisan group of elected officials to question whether the tax break is still necessary.
Catch up quick: The Legislature first approved the subsidy in 2013 and later extended it to apply to data centers that locate or expand in Arizona through 2033.