By Jeremy Duda | Axios
Data centers consume an inordinate amount of electricity, and the Corporation Commission is trying to figure out how to cope with the demand.
The big picture: With low energy costs and few natural disasters, the Phoenix metro area has become one of the top data center markets in the U.S.
- Those buildings house computer equipment for data storage and are critical for companies including Amazon and Google and technologies such as AI.
- Driven by the growth of AI and other technologies, data centers are increasing energy usage not only in Arizona but across the U.S.
Why it matters: Arizona has enough energy to meet its current needs, but that may not be the case in three to five years, Corporation Commission chair Kevin Thompson told Axios.
- “That horizon is what I’m concerned about. That’s what keeps me up at night,” he said.
- By the numbers: Arizona data centers could more than double their energy usage by 2030, according to a 2024 report by the Electric Power Research Institute, consuming up to 16.5% of the state’s total electricity.
- What they’re saying: “It’s something that Arizona needs to deal with in order to make sure we can continue our economic development position and keep growing and creating high-tech jobs,” said Court Rich, an attorney with Rose Law Group who specializes in energy and utility issues.
