Arizona’s largest utilities, Arizona Public Service (APS) and Salt River Project (SRP), are facing unprecedented energy demand as the state experiences a rapid boom in data center development. If all proposed facilities move forward, APS and SRP could see energy needs nearly triple, requiring up to 29,000 megawatts of additional power — enough to serve over 5 million homes. This surge poses major grid challenges and risks shifting infrastructure costs onto existing residential customers under current rate structures. Advocates warn that unchecked growth could strain resources, impact water and energy use, and raise equity concerns. State regulators are now examining how to manage this explosive growth, balance rate fairness, and ensure sustainable grid planning in the face of high-load, high-intensity data center demand.
