“Arizona is attracting the world’s most innovative companies right now — pulling the rug out from their data storage facilities which are necessary to attract this caliber of job creators will have real negative economic development consequences.” –Jordan Rose, founder and president of Rose Law Group
By Reagan Priest | State Affair
Tax incentives for data center operators could be on the chopping block after Arizonans rallied against new data center projects in 2025.
Rep. Neal Carter introduced House Bill 2119 (computer data center; application; deadline) to end the state’s tax incentives for data center developments this year, instead of its current expiration date in 2033. Carter told the Yellow Sheet Report that the bill is constituent-driven.
“The people in my district don’t like (data centers) and they’re popping up here,” said Carter, who represents San Tan Valley. “It came to light that they were a tax advantage, so they’re like ‘that’s ridiculous.’ If they want to build them, fine, but why should the state be subsidizing it?”
The data center tax incentive was first approved by the Legislature in 2013 and extended in 2021. It exempts owners and operators from transaction privilege and use taxes if they meet certain criteria and file an application with the Arizona Commerce Authority.
