Nearly three weeks after proposed zoning regulations for data centers were brought forward by the city of Phoenix, Mayor Kate Gallego signaled a new stance toward the infrastructure needed to meet the computing and storage demand of artificial intelligence.
During her May 20 State of the City address, Gallego highlighted the city's efforts to “set guidelines to support intentional growth” of data centers and called on the Arizona Legislature to end tax incentives for them.
“Our state still incentivizes new data centers, a holdover from a time before our economy was the magnet for job growth that it is today,” Gallego said. “I think it’s safe to say these tax breaks are no longer necessary. To ensure our precious resources are used to the highest benefit and value for our residents, state lawmakers must roll back this antiquated incentive.”