Republican Arizona state Rep. Justin Wilmeth spoke in defense of data centers, arguing that attacks against them belie evidence that they serve the public’s best interest, amid growing debate about development in the state.
As chairman of the Arizona House of Representatives Committee on Artificial Intelligence & Innovation, Wilmeth said that data centers would help “Make America Visionary Again” by giving the United States an edge in the global AI race. He expressed concern that foreign funding is propelling opposition to technological advancement. His position, as outlined in an op-ed for the Arizona Republic, comes after a developer recently retracted plans to build the biggest data center complex in the state, upon facing backlash from Rural Arizona Engagement and other residents.
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“The activist groups scaring you about data centers received approximately $39 million in foreign funding, which was plowed into anti-data center messaging campaigns, lobbyist schemes and public pressure protest campaigns,” Wilmeth wrote. “Why is it worth it to outside interests to dump so much money into this matter? That alone should make you suspicious and concerned. This is also absolutely about our nation’s national security. We don’t want an even-more-powerful China controlling the world’s digital future.”
Wilmeth’s op-ed came as Vermaland, LLC, announced last week it would cut its proposed $33 billion La Osa proposal in Pinal County from 59 to 11 data center buildings. The Pinal County Board of Supervisors initially approved Vermaland’s application to rezone and begin site planning, but voted on Thursday to continue the discussion and public hearing until August 26.
About 15 miles west of Phoenix, another data center proposal dubbed Project Baccara recently received key approvals from the Maricopa County Board of Supervisors. The board approved a military compatibility permit last month after receiving hundreds of emails opposing it and holding a public meeting at which 22 people spoke out against the project. The 160-acre complex would be spearheaded by developer Takanock.
In his op-ed, Wilmeth pushed back against common attacks on data centers, including concerns they drive up electricity prices and drain local resources, such as water. He said developments are innovating to resolve such concerns with new systems.
“The new data center builds are using closed-loop cooling systems, meaning the initial water draw is recycled over and over,” he wrote. “For example, the massive TSMC project will feature a reclamation water plant, which aims to recycle upwards of 90% of its water usage. This, and next-generation cooling gels, is the future.”
In reference to the 14% electricity rate increase proposed by Arizona Public Service, Wilmeth said the proposal was “unrelated” to data centers.
“There’s belief that consumption spikes by data centers are impacting rates,” he said. “That’s false. Data centers do not impact residential user rates, as they are on an entirely different cost and payment structure. They’re parallel to each other, not intertwined. I do understand the confusion, however, as the APS rate request case is ongoing.”
The Republican lawmaker directly criticized Senate Bill 1463, which sought to repeal tax breaks for data centers. Democrats introduced the measure in the state legislature earlier this year, as the tax breaks have helped Arizona become one of the fastest-growing hubs for data centers in the country.
“Right now, families are paying more for utilities, not just because energy costs are rising, but mainly because powerful corporations are shifting the costs of massive data centers and AI infrastructure onto regular ratepayers,” Senate Minority Leader Priya Sundareshan, who introduced the bill, said in January.
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Wilmeth framed the legislation as detrimental to Arizona’s economy and a “reactionary response to the sudden public outrage” against data centers.
“Those [tax break] incentives also pumped billions into our state as a result — a $25 billion contribution to the state GDP and $863 million in state and local tax revenue, both in 2023,” he said. “Roughly 88,000 jobs are supported by the plan. That’s why SB 1463 didn’t receive a hearing. It was bad policy. The state received far more on the back end than it sacrificed on the front.”
