Pima County’s Data Center Moratorium is Unlawful and Threatens Growth

The Goldwater Institute has asked Pima County to immediately rescind its moratorium on new data center development, warning county officials that the sweeping prohibition violates Arizona law and threatens private property rights.

In a demand letter sent to the Pima County Board of Supervisors, Goldwater explains that Arizona law doesn’t let counties halt legal development just so officials can “study” an industry or consider new regulations. Instead, state law allows moratoria only where there’s a shortage of essential public facilities or a “compelling need”—which the law defines as a “clear and imminent danger to the health and safety of the public.”

And neither one of these exists—as county officials admit.

The county conducted a public-health review to determine if there are real risks from data centers—and the review answered no: “current [research],” it said, “highlights the lack of direct empirical evidence on health impact in communities near data centers.” And the report makes no effort to predict the health or environmental effects of data centers in Pima County. Of course, even if there were, any such concerns can already be addressed through ordinary regulations, which address questions of pollution or public health problems that might be associated with development.

That’s important because Arizona law only allows moratoria if there’s strong evidence of an imminent risk to the public. It does not allow the county to freeze otherwise lawful property uses just because county leaders want more time to consider new rules.

Pima’s moratorium also raises serious concerns under Arizona’s Private Property Rights Protection Act. That law says the government cannot regulate away property owners’ rights without paying just compensation for the reduction in value that results. Affected property owners may therefore have significant financial claims against Pima County.

Pima County’s lawless action comes in the midst of increasing NIMBYism against data centers—the physical infrastructure necessary for pathbreaking innovations already taking place across industries and many of life’s daily activities. As we pointed out in our recent report on data centers, Arizona has become a major national data-center hub because of its favorable business climate, infrastructure, and respect for property rights. But increasingly restrictive local policies, such as Pima County’s moratorium, are a serious risk to the economic and social benefits that result.

There may be legitimate concerns about infrastructure and resources from the construction of data centers—as with any other development—but these can be addressed through clear, generally applicable rules that apply consistently to similar land uses. What Pima County cannot do is arbitrarily ignore, pause, or trample on property rights.

Click here to read the Goldwater Institute’s demand letter to the Pima County Board of Supervisors.

Jon Riches is the Vice President for Litigation