As demand for energy from data centers grows, so are residential concerns that the power-hungry facilities are driving up their bills.
A newly announced gas power plant could be the testing ground for making sure data center energy costs aren’t passed onto residents.
The 2,000-megawatt Desert Sun Power Plant near Gila Bend will be done in two phases. The cost for the first phase will be covered by all users.
But officials at Arizona Public Service, which is building the plant, say the second phase will use a subscription model from large industrial users like data centers.
Jacob Tetlow is executive vice president with APS.
“They actually front some of the financials to help build it. They're committing to taking that energy for the long term. And then they get rights to that energy," Tetlow said.
He says the proposal still needs to be approved by the state agency that regulates utilities. Tetlow did not say how much the plant will cost to build, or how expensive the subscription models will be.
The gas will come from Texas through the Transwestern pipeline announced in August.
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The Arizona Corporation Commission is facing a complaint accusing it of violating the state’s open meeting law after it voted to redact video of a public meeting where commissioners talked about a staffer who was recently fired. -
Data analyst Abhay Padgoankar says a group of around 100 data centers and other large industrial users have nearly all of the increased demand on APS's system in recent years. To keep up with demand, he says, the utility is buying more power from outside suppliers and charging that across the entire rate base. -
The Mesa City Council approved landing fees at Falcon Field airport in March to help keep the airport self-sustaining. In April, the Federal Aviation Administration initiated a review over concerns the fees target specific airport users. -
New federal data shows a wide gap in the amount of carbon pollution produced by electricity generation across the West, reflecting stark differences in how states produce their power. -
Learn more about the candidates for the 2026 race for Arizona Corporation Commission.
