The chair of the Arizona Corporation Commission says the panel is considering making a specific utility rate for data centers. The implementation of those possible rate changes is still a ways off.
Corporation Commission Chair Kevin Thompson says the possibility for new charges for data center electricity use would come through the hearing process of APS and Tucson Electric Power rate cases.
"If you've got an 8,400 megawatt system, and you've got 19,000 megawatts in the queue, that vehicle behind us is approaching quick," Thompson said.
Thompson says that could take about 18 months before the commission could implement those rates proposed by the utility companies.
“We want to get out ahead of this. We don't want to be reactive. We want to be very proactive in our approach and make sure that, you know, what we're doing is right for the utilities and right for the consumers," Thompson said.
The commission also cited a report from the real estate company JLL that said Phoenix ranked second in the country for data center development.
APS’ parent company also reported earlier this year that data centers and large industrial users caused the majority of utility demand growth in 2024.
