Between June 15 and June 30, more than 100 applications for the tax break were submitted, according to state records. In total, 107 data center tax incentive applications were approved before the moratorium took effect, a surge that could commit the state to significant forgone revenue for years to come.

The incentive, which exempts data centers from certain transaction privilege taxes on equipment and electricity, has been a flashpoint in Arizona's debate over corporate subsidies and energy use. Supporters say it has attracted major tech investment to the state; critics argue it drains public resources while data centers consume vast amounts of water and power, often with limited local job creation.

The moratorium was intended to give lawmakers time to review the program's costs and benefits. Instead, the two-week window before the pause became a land rush, with companies scrambling to secure approvals before the door closed.

The 107 approved applications represent a substantial expansion of the program's footprint. Each approval locks in tax relief that could otherwise have funded public services, and the timing suggests companies were well aware of the impending deadline.

For Arizona communities, the surge raises questions about whether the moratorium will achieve its intended savings or simply accelerate the awarding of tax breaks. It also intensifies scrutiny of a program that has operated largely out of public view, with little disclosure of who benefits and how much revenue is forgone.

Lawmakers have not indicated whether they will revisit the approvals or tighten eligibility rules when the moratorium lifts. But the episode is likely to fuel calls for greater transparency and a more deliberate approach to economic incentives as Arizona weighs the costs of its fast-growing data center industry.