APS says electric grid constraints have prevented the utility from committing to providing power to new data centers for the last two and a half years.
Data centers contracted with APS have been under construction in that time. But in a statement to KJZZ, the utility said it hasn’t made commitments to serve additional data center customers since Jan. 1, 2024.
Microsoft raised concerns over this in APS’ ongoing rate case, where the tech company has intervened against the proposed 45% rate increase on data centers.
APS says reliability is its top priority and that it cannot commit to new data centers under its current pricing structure. The utility says that’s partly because it wouldn’t be able to serve the facilities during nighttime hours, when solar is not an option and battery storage may be depleted.
APS has committed to allocating about 4,000 megawatts to data centers in the coming years. The company says it will need to build out new plants with sources that can provide constant power, like natural gas or nuclear generation, in order to support that commitment.
In early August, APS’ record for peak demand broke with more than 9,100 megawatts.
APS has plans to build a new 1,280 megawatt natural gas plant near Gila Bend, and to convert its Cholla coal power plant to natural gas.
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