Status: Enacted, effective 12 September 2026 · Applies to: applications from 1 July 2026 through 30 June 2029
What changed
Arizona has suspended new applications to its Computer Data Center program. HB 4168, Chapter 140 of the 2026 session, bars the Arizona Commerce Authority from accepting applications for a new computer data center during the moratorium window, and provides that no new computer data center can qualify for the tax relief under A.R.S. § 41-1519 during that period.
One timing note. Arizona’s general effective date for 2026 session legislation is 12 September 2026, but the moratorium provision applies retroactively to 1 July 2026.
Who it applies to
Any entity that would have sought a new Computer Data Center certification in Arizona between 1 July 2026 and 30 June 2029.
The program’s qualifying thresholds are $50 million of investment in Maricopa or Pima County, and $25 million in counties with populations of 800,000 or less.
We have not established how many Arizona certifications historically went to enterprise-owned facilities rather than colocation providers or hyperscale operators.
What the law actually does
It closes the application window. It does not change the tax treatment available under an existing certification, and it does not repeal § 41-1519.
The distinction the statute draws is between a new computer data center and facilities already in the program. Section 41-1519 provides that existing certifications remain in effect absent specified revocation, and expressly permits expansion of certified sustainable redevelopment projects on the same or contiguous property.
What remains unclear is when an expansion or additional phase can remain within an existing certification, and when it would require a separate new computer data center certification — which the moratorium would block.
Why an enterprise data center owner should care
If Arizona was on a site-selection list partly because of the Computer Data Center incentive, the incentive is unavailable to a new facility for the next three years.
A project weighing Arizona against other markets on total cost now has one fewer variable working in Arizona’s favor.
What we can and cannot conclude yet
We have verified the statute, its chapter number, the moratorium window, the retroactive application date, and the program’s investment thresholds.
Under current law, the moratorium ends after 30 June 2029, while § 41-1519 continues to authorize new certifications through 31 December 2033. Future legislation could change that.
The open question is the boundary described above — when an expansion stays inside an existing certification and when it needs a new one. We have also not reviewed the legislative record for what prompted the moratorium.
Primary source
Government source. Arizona HB 4168, Chapter 140, 2026 session (PDF) — the chaptered text carrying the moratorium dates. A.R.S. § 41-1519 (Computer Data Center program). Arizona State Legislature.