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.
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.
