Arizona governor vetoes bill that would weaken referendums, empower data centers

Arizona Gov. Katie Hobbs recently vetoed a bill pushed by a data center developer lobbyist that would have significantly reduced the power of citizen initiatives statewide.

HB 2873, passed by the state legislature in late April, would have allowed referendum petitions brought forth by Arizona citizens to be withdrawn before they are put to a vote. The Arizona Secretary of State defines referendums as the “method by which voters may veto a law (or part of a law) by gathering signatures from registered voters to place the issue on the ballot.” The bill was first introduced in the Arizona House of Representatives in January 2026 and after passing both chambers, the bill made its way to Hobbs’ desk in June for her rejection.

According to Natali Fierros, executive director of Rural Arizona Action (RAZA), the organization assumed that Hobbs would most likely sign the bill. However, pressure from the public and advocacy organizations may have pushed her to veto.

While the bill does not mention data centers directly, the referendum process was recently relevant in the Town of Marana, where construction of the controversial Project Blue is beginning. Earlier this year, residents collected signatures in an attempt to put the proposed data center to a vote. The residents later sued the town after their petitions were rejected. Had HB 2873 been signed, the grounds for appealing such rejections would have disappeared.

“[This is] about self-determination,” Fierros said in an interview with CALÓ News. “The referendum process is empowering the people of Arizona and it's been pivotal to our history. It's a way for the public to really make their voice heard. Interfering with that referendum process, to us, is an attack on direct democracy.”

The fight against HB 2873 began with Marana residents organizing, collecting signatures and challenging data centers being proposed in their backyards. At a Marana Planning Commission meeting in Dec. 2025, activists and residents booed the unanimous vote to rezone land for data centers.

“We brought Marana residents to the Capitol,” Fierros said. “We helped mobilize — like literally carpooled — down to the Capitol so that residents could share with lawmakers directly.”

Fierros also mentioned the environmental concerns associated with data centers and how they might affect the overall appeal of living in Arizona. While Marana residents currently face the worst of the data centers’ effects, other Arizona cities could also see environmental consequences.

“If they did this to [the Marana] community, it could be replicated elsewhere,” Fierros said. “It would then become a tool in the toolbox of data center lobbyists.”

Pressure from lobbyists helped pass HB 2873. “It continues to be a concern when lobbyists for developers or corporations can come in and throw their weight around with elected officials,” Fierros said. “Citizens come out on the losing end of that.”

The upcoming midterm elections — which will take place in Arizona on July 21 — are expected to impact Arizona politicians seeking reelection.

“You think about, ‘what is it that I want in my backyard where I'm raising a family?’” Fierros said. “It does mean being involved. It does mean casting a vote. It does mean civic participation. Whether you do politics or you don't do politics, politics is going to do you.”

As Fierros points out, politics is inevitable, and it is better to speak about the subject than to pretend it is not contentious or controversial.

“These are not sexy conversations,” Fierros said. “They're smack dab in the middle of the day, in the middle of a work week and people are still showing up. It matters to people. And if it matters to people, it should matter to the electeds who are representing them.”

Most legislative processes in Arizona take place in Phoenix. Activists like Fierros, however,  encourage all Arizonans to unite against predatory practices by companies and governments.

“You don't have to live here to be concerned about the expansion of these data centers,” Fierros said. “The thing that connects us all is the water. There is not an unlimited supply of water in our state.”