by Matthew Holloway | Feb 4, 2026 | Economy, News
By Matthew Holloway |
Arizona’s growing role as a national hub for data centers could be undermined by municipal regulations driven by concerns over water use, electricity demand, and land use, according to a new policy report released by the Goldwater Institute. The report, Data Centers: A Free Market Model for the Digital Future, argues that Arizona’s success in attracting data center investment stems from long-standing policy choices that favor predictable regulation, private property rights, and a stable legal environment.
The authors note that “artificial intelligence has dramatically accelerated these trends. Demand for data has increased exponentially. How communities, businesses, and policymakers respond to this transformation will shape economic competitiveness for decades to come.”
The report also cautions that a rise in local-level restrictions could threaten the state’s competitive position in the digital infrastructure sector.
William Beard, municipal affairs liaison at the Goldwater Institute and a co-author of the report, explained, “Data centers are the physical backbone of cloud computing, artificial intelligence, digital commerce, and national security. They are core infrastructure, no different in principle from transportation networks, energy production, or large-scale agriculture built to meet the demands of a particular era.”
Beard added that Arizona’s emergence as a leader in data center development has already produced economic benefits for the state. “Arizona is thriving as a leader in data centers, the state is reaping the economic benefits, and policymakers must take steps to ensure that continues,” he said.
According to the report, the Greater Phoenix region has become one of the top data center markets in the United States, with capacity projected to exceed 5,000 megawatts—an expansion of more than 500 percent. Goldwater attributes the dramatic growth to regulatory predictability and policies that encourage investment rather than discourage it, as well as “affordable land; reliable energy; and a legal environment anchored in strong private property rights.”
However, the report also warns, “Continued growth is no guarantee, especially as local governments threaten data centers with restrictive policies.”
Data center developments, such as the 290-acre data center Project Blue in Pima County and Project Baccara in Surprise, have sparked heated controversy at the municipal and county levels.
Citing growing municipal resistance to data center projects, Jen Springman, coalitions manager at the Goldwater Institute and a co-author of the report, said opposition is often rooted in misunderstandings about the impacts of infrastructure.
“Arizona’s advantage is increasingly threatened by a growing municipal-level regulatory backlash, often driven by misconceptions about water use and electricity demand,” Springman said.
Regarding water consumption, Springman said, “Modern data centers are among the most water-efficient industrial facilities ever built.”
The report further challenges claims that data center development is responsible for rising electricity prices. “Electricity prices, meanwhile, are not a data center problem; they are a policy outcome,” Springman said.
She added that misdirecting blame can lead to ineffective policy responses. “Blaming infrastructure for political energy choices obscures the real cause—and produces the wrong solutions,” Springman said.
Goldwater’s report argues that local restrictions do not reduce demand for digital services, but instead risk shifting investment to other states while increasing costs for consumers and businesses.
In a summary of the report’s conclusions posted to X, Goldwater stated, “The question is not whether data centers will exist, but whether Arizona will continue to lead—or retreat in the face of the future.”
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Ethan Faverino | Jan 11, 2026 | News
By Ethan Faverino |
Arizona House Speaker Steve Montenegro announced last week, the establishment of two new House committees for the 57th Legislature’s Second Regular Session. The move reflects a proactive effort to address emerging technologies and the distinct needs of Arizona’s rural communities as lawmakers assemble on January 12.
In announcing the decision, Montenegro said, “Arizona lawmakers cannot afford to be passive while technology reshapes our economy and government. At the same time, rural communities deserve policies that recognize their role in feeding, powering, and supporting this state.”
Rep. Justin Wilmeth (R–LD 2) will chair the newly established House Committee on Artificial Intelligence and Innovation, with a focus on responsible policymaking in the rapidly evolving field of AI.
“Artificial intelligence has become a powerful engine for our nation’s economy, and it’s here to stay,” said newly appointed Chairman Wilmeth. “With the creation of the AI and Innovation Committee, the legislature is signaling that policymakers are evaluating their role in the future of Arizona: creating high-skill jobs, attracting new investment, and strengthening existing industries from semiconductors to healthcare. As Chairman, I hope to create a forum where experts, industry leaders, and members of the public can share their perspectives, knowledge, and concerns so we can create informed and effective legislation. Our state’s future competitiveness depends on embracing AI and supporting the innovators who choose to build and grow here.”
Rep. Teresa Martinez (R–LD 16) has been appointed chairwoman of the House Committee on Rural Economic Development, which will focus on all policies affecting rural jobs and local investment.
“Too often, policies are written without considering how they affect rural Arizona,” said Chairwoman Martinez. “I intend for the Rural Economic Development Committee to closely examine how state decisions impact jobs, infrastructure, water access, and local investment—and to advance policies that help rural communities grow, compete, and keep opportunity close to home.”
Both committees will meet on Thursdays at 9:00 a.m., The new legislative session opens on January 12.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Ethan Faverino | Nov 7, 2025 | News
By Ethan Faverino |
Axon, a global leader in public safety technology, has signed an agreement to acquire Carbyne, the cloud-native emergency communications platform trusted by agencies serving over 250 million people worldwide.
The $625 million transaction, expected to close in the first quarter of 2026, marks a critical milestone in Axon’s mission to transform public safety from the moment a 911 call is placed.
By combining Carbyne’s modern call-handling core with Axon’s AI-driven Prepared platform, the company introduces Axon 911–the industry’s first fully integrated, start-to-finish emergency response system.
Axon 911 seamlessly links callers, dispatchers, and field responders through real-time data, live video, multilingual translation, and automated evidence workflows. From the initial alert to final case resolution in Axon Evidence, every critical detail is captured, shared, and actionable.
“Every year, more than 240 million 911 calls are made in the U.S., and in too many cases, vital information is lost between the call and the response,” said Axon Founder and CEO, Rick Smith. “By uniting Axon’s 30-year legacy of innovation with Carbyne’s cloud-based call management platform, we’re closing that gap, giving call takers and dispatchers instant visibility and connecting them directly to officers in the field. It’s how we transform a call for help into the first moment of intelligence.”
The transformation relies on two complementary engines. Prepared by Axon serves as an AI overlay that enhances any existing 911 system with real-time transcriptions, automated triage, and non-emergency deflection. It currently operates in over 1,000 centers across 49 states and serves nearly 100 million residents.
Carbyne functions as a cloud-native core with 99.9% uptime, intelligent routing for voice, text, and video, and real-time voice-to-voice translation. The platform currently processes more than 250 million data points annually.
Together, Prepared and Carbyne power Axon 911 as a unified platform. Call data instantly feeds Axon Fusus for real-time analytics and command visibility. Dispatchers can trigger Axon Drone as First Responder (DFR) directly from the call screen to help deliver real-time updates. Body-camera footage, drone feeds, and digital evidence are automatically archived in Axon Evidence.
Even though 80% of 911 calls now originate from cell phones, most centers still rely on decades-old landline systems. A survey done by Carbyne with the help of the National Emergency Number Association reveals that 86% of centers face high call volumes at least weekly, with 35% experiencing them daily. Additionally, 63% report that 50-80% of calls are non-emergencies.
“Carbyne was created to modernize how help arrives — by giving emergency professionals the clarity, resilience, and confidence they need in critical moments,” said Carbyne Founder and CEO, Amir Elichai. “Joining Axon allows us to scale that mission globally and integrate more deeply into the broader public safety ecosystem. Together, we’ll help agencies save time, reduce uncertainty, and improve outcomes for the people and communities they serve.”
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Jonathan Eberle | Oct 31, 2025 | News
By Jonathan Eberle |
The Arizona Freedom Caucus announced that Representative Alexander Kolodin will lead a special hearing on “The Implications of Artificial Intelligence for Democratic Governance and How to Preserve Meaningful Elections” on Friday, November 14, 2025, at 9:30 a.m. in House Hearing Room 4 at the Arizona State Capitol.
The hearing, open to the public and livestreamed through the Arizona Legislature’s website, will focus on how the rapid development of artificial intelligence (AI) is reshaping democratic institutions and the electoral process. Lawmakers plan to explore both the opportunities AI presents for improving government efficiency and the potential threats it poses to election security, voter confidence, and public trust.
Representative Kolodin, who chairs the House Ad Hoc Committee on Election Integrity and Florida-style Voting Systems, will be joined by four other Arizona House members, including fellow Freedom Caucus member Representative Rachel Keshel.
“The states cannot be complacent when it comes to the rapid development of AI,” Kolodin said in a statement. “The risk of insufficient oversight of AI is literally what dystopian nightmares are made of. Although it is reasonable to be excited about the prospects of AI to improve human life and society, it is equally critical to be vigilant about the ways it can be abused to erode our freedoms, including threatening democratic governance and our elections.”
The Arizona Freedom Caucus said it views the hearing as a proactive step toward crafting policy that anticipates how AI could be weaponized to undermine democratic processes. The group emphasized that while AI offers enormous benefits, its misuse could have far-reaching consequences for liberty, privacy, and electoral integrity.
“There is perhaps no greater concern than how AI will impact our elections,” the caucus said in its release. “We believe the best way to prevent destructive scenarios is to address AI’s prospective impacts and uses on the frontend.”
The November 14 session is expected to feature expert testimony and legislative discussion on strategies to safeguard Arizona’s electoral systems while responsibly integrating emerging technologies.
Members of the public can view the livestream of the hearing here.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
by Staff Reporter | Oct 27, 2025 | Education, News
By Staff Reporter |
Arizona education leaders want their students to be ready for the dawning age of artificial intelligence (AI).
The state is now the leader in the nation for percentage of students using AI tools. State Superintendent Tom Horne announced this development on Thursday in a press release.
“I am a strong supporter of AI as a classroom tool to assist, but not replace, educators,” said Horne. “So far, about 4,000 educators statewide are using this system, and I encourage more teachers to sign up. It is an invaluable resource that helps educators do their jobs more effectively.”
Over 170,000 students — representing 16 percent of the state’s public school student population — are using AI-powered tutoring to improve their academic performance.
These students rely on the AI education system Khanmigo within Khan Academy. Horne called the sweeping adoption of the tools “tremendous.” The Arizona Department of Education invested $1.5 million for Khamingo access last year.
Horne said he selected Khanmigo for its tutoring approach: guiding students through the critical thought process, rather than merely providing answers.
“It engages students by asking questions that guide them to discover solutions on their own,” said Horne. “This approach delivers rigorous, individualized Socratic-style tutoring — a proven method for improving academic outcomes.”
The “Socratic” method referenced by Horne concerns arriving at answers through a series of open-ended questions structured to encourage critical thinking.
An example of Khanmigo’s phrasing provided in the press release (solving for “m” in the sample math problem, 3 – 2(9+2m) = m) showed how the tool prioritizes guiding the student to work through problems.
“Let’s work through it together! What do you think the first step should be to solve this equation?”
Khanmigo conversations are also recordable and viewable by teachers.
The over 4,000 Arizona educators mentioned by Horne rely on an online AI platform called the Arizona Digital Educators Library (ADEL). This platform assists educators with creating lesson plans and classroom materials that meet the state’s academic standards.
ADEL also has 50 ambassadors to increase educator usage throughout the state. There are over 57,000 educators in the state: over 47,000 in district schools and nearly 10,000 in charter schools.
As Horne explained in his State of Education speech in January, educators can use Khanmigo to strengthen student weaknesses revealed through testing.
“Today, when a teacher gives a test, some students get 90 percent, others get 70 percent. Those with 70 percent are moved to the next grade, missing 30 percent of the knowledge they need for continuing their studies. They are lost,” said Horne. “With Khanmigo, the teacher can say ‘here is what you did not learn, use Khanmigo to tutor you on that subject.’”
State Senator Jake Hoffman, founder of the Arizona Freedom Caucus, expressed support for the implementation of AI tools in schools. Hoffman said AI posed a greater threat to the American worker than Russia, China, and nuclear war.
“If K-12 public schools and public universities are not aggressively retooling every aspect of their operation to equip students with the skills to survive in this new AI age, they’ve already failed,” said Hoffman.
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