Arizona's Hobbs wins reelection in governor's race emphasizing affordability

Democrats retained a key governorship in Arizona, where Katie Hobbs won a second term, defeating Republican challenger Andy Biggs.

Hobbs sought to promote herself as a champion of both clean energy and affordability in a campaign marked by public concerns over the impact of data centers on electricity prices. Since taking office in 2023, she has sought to balance the state's decarbonization efforts with an emphasis on economic growth, even at the risk of alienating environmental groups.

The Associated Press called the race for Hobbs early Nov. 4, when she led Biggs by 55.7% to 42.6% with 83% of the vote counted.

With Arizona experiencing surging power demand, Hobbs' middle-of-the-road energy strategy is likely to continue.

A second Hobbs term will see continued debate over Energy Transfer LP's efforts to expand its Desert Southwest gas pipeline, which brings gas from the Permian Basin to Arizona and New Mexico. Hobbs threw her support behind that effort in May, saying pipeline expansion was "critical to supporting Arizona's long-term prosperity."

The data center issue will also continue to loom over Arizona politics for the foreseeable future. During Hobbs' first term, the governor signed a three-year moratorium on state data center tax credits, and she has been vocal about wanting data centers to shield ratepayers from additional costs and meet tough water-usage standards.

Hobbs will also continue to face a Republican-controlled Arizona Corporation Commission, though Democrats were leading contests for two seats early Nov. 4, threatening the GOP's current 5-0 hold on the utility regulator.

Hobbs has publicly supported aggressive emissions-reduction efforts, including by signing on to the US Climate Alliance, a coalition publicly committed to achieving net-zero emissions by 2050. In March, however, the ACC unanimously voted to repeal the state's renewable energy standards, saying the costs no longer justified the rules.