Arizona is one of the leading states in the nationwide data center boom, with 98 data centers currently operating and 86 planned or under construction. The Pew Research Center has found that as of February, Arizona had more data centers operational or planned than any other state. However, there has been controversy over energy and water use, leading to increased scrutiny over data center energy use and a potential slowdown in development. The Arizona Corporation Commission is considering new policies to ensure that costs for energy and new infrastructure for data centers aren't passed onto other ratepayers. A report by JLL cited Phoenix as the No. 2 market for planned data centers in mid-2025.