Arizona has become one of the fastest-growing hubs for data centers in the United States. However, this rapid expansion is raising concerns about its impact on disadvantaged communities lacking access to basic electricity.
Since 2019, Maricopa County has built 12 data centers, with at least 20 more projects planned. By 2028, the region is expected to have the nation’s second-largest concentration of these facilities, which are critical to supporting the operations of the tech industry.
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Data centers are known for their significant energy demands, requiring up to 50 times more power per square foot than a typical office building.
Arizona Public Service, the state’s largest utility provider, has projected that data centers will account for 55% of its power needs by 2031. Similarly, Salt River Project, the state’s second-largest utility provider, anticipates that about half of its power growth through 2029 will be tied to these facilities.
While the state’s tax incentives have drawn data center developers, their proliferation has placed increasing stress on Arizona’s power grid, leading to decisions that disproportionately impact vulnerable populations.
In 2024, the Arizona Corporation Commission approved funding for infrastructure improvements to support data center growth. Meanwhile, the commission declined a separate proposal to expand electricity access to parts of the Navajo Nation, citing concerns over potential consumer costs. As a result, thousands of Navajo homes remain without power.
Additionally, plans to expand a natural gas plant to meet the energy needs of incoming data centers have sparked environmental and health concerns in Randolph, Arizona. The historic Black community south of Phoenix faces heightened risks from emissions linked to asthma and lung cancer.
Arizona officials are now grappling with a critical decision: whether to prioritize data center expansion, which promises economic benefits like jobs and tax revenue, or slow the pace of growth to redirect resources toward addressing long-standing energy needs in underserved areas.
[Jack Aylmer]
ARIZONA IS ONE OF THE FASTEST-GROWING HUBS FOR DATA CENTERS IN THE UNITED STATES-
BUT THE PROLIFERATION OF THESE FACILITIES IS REPORTEDLY LEAVING SOME DISADVANTAGED COMMUNITIES IN THE STATE WITHOUT BASIC ACCESS TO POWER.
SINCE 2019, MARICOPA COUNTY HAS BUILT 12 DATA CENTERS, AND AT LEAST 20 MORE PROJECTS ARE IN THE PIPELINE-
IT’S ESTIMATED BY 2028 THE REGION WILL BE HOME TO THE NATION’S SECOND LARGEST CONCENTRATION OF THE INFRASTRUCTURE NEEDED FOR TECH OPERATIONS.
HOWEVER, DATA CENTERS ARE INCREDIBLY ENERGY INTENSIVE-
REQUIRING UP TO 50 TIMES MORE POWER PER SQUARE FOOT THAN A TYPICAL OFFICE BUILDING.
ARIZONA PUBLIC SERVICE, THE STATE’S LARGEST UTILITY PROVIDER, ANTICIPATES 55 PERCENT OF ITS PROJECTED POWER NEEDS BY 2031 WILL COME FROM DATA CENTERS.
AND SALT RIVER PROJECT, THE STATE’S SECOND LARGEST UTILITY PROVIDER, ESTIMATES ABOUT HALF OF ITS POWER GROWTH THROUGH 2029 WILL BE TIED TO THESE FACILITIES.
DATA CENTER DEVELOPERS ARE FLOCKING TO ARIZONA BECAUSE OF THE TAX INCENTIVES OFFERED TO THEM BY THE STATE-
THEIR EXPANSION HAS INTENSIFIED STRESS ON THE POWER GRID HERE-
LEADING TO DECISIONS THAT HAVE AFFECTED VULNERABLE PEOPLE.
THE ARIZONA CORPORATION COMMISSION HAS PRIORITIZED FUNDING TO MAKE INFRASTRUCTURE IMPROVEMENTS FOR DATA CENTERS-
WHILE LEAVING TRIBAL COMMUNITIES WITHOUT ELECTRICITY.
JUST AFTER THE COMMISSION APPROVED DATA CENTER RELATED UPGRADES IN FEBRUARY-
IT DECLINED A PROPOSAL THAT WOULD HAVE EXPANDED POWER ACCESS TO PARTS OF THE NAVAJO NATION-
CITING CONCERNS OVER CONSUMER COSTS.
CURRENTLY, THOUSANDS OF NAVAJO HOMES REMAIN WITHOUT ELECTRICITY.
MEANWHILE, A NATURAL GAS PLANT EXPANSION-
WHICH IS BEING PURSUED TO MEET THE ENERGY DEMANDS OF RAPIDLY INCOMING DATA CENTERS-
HAS ALSO RAISED ENVIRONMENTAL AND HEALTH CONCERNS FOR RESIDENTS OF RANDOLPH, ARIZONA, A HISTORICALLY BLACK TOWN SOUTH OF PHOENIX.
AS EMISSIONS FROM THE PLANT HAVE BEEN LINKED TO ASTHMA AND LUNG CANCER.
THE DECISION FOR ARIZONA OFFICIALS ESSENTIALLY BOILS DOWN TO THIS:
THE STATE CAN PUT ALL ITS EFFORTS INTO DATA CENTER GROWTH – WHICH PROMISE MORE JOBS AND TAX REVENUE
OR LOOK TO TURN THE LIGHTS BACK ON IN PLACES WHERE ENERGY NEEDS ARE NOT BEING MET-
POTENTIALLY HINDERING THE CURRENT RATE OF THIS EXPANSION IN THE PROCESS.
TO GET MORE STORIES ABOUT THE DIFFICULT CHOICES DATA CENTERS ARE FORCING AMERICAN POLICYMAKERS INTO THROUGHOUT THE COUNTRY-
DOWNLOAD THE STRAIGHT ARROW NEWS APP AND SIGN UP FOR ALERTS FROM ME-
JACK AYLMER.
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