Arizona Proposes Pausing Data Center Tax Breaks for Three Years

Arizona lawmakers have proposed a three-year moratorium on new sales tax breaks for data centers, which would be the most restrictive state-level response to the industry yet.

The proposed moratorium was tucked into an $18 billion budget deal announced Tuesday by Republican leaders and comes after Gov. Katie Hobbs (D) requested the Republican-controlled legislature repeal the tax incentive. Still, it was a surprise last-minute addition to a budget that was defined by partisan squabbling over tax conformity and education funding.

The budget legislation will be considered during a Joint Appropriations Committee hearing Wednesday morning and is expected to come up ...