Phoenix, Ariz. –  This month, Arizona Corporation Commission Chairman, Kevin Thompson, formally opened a new docket concerning the influx of new data centers in Arizona.  As data centers continue to expand and add to Arizona’s fast-growing energy demands, Chairman Thompson stresses the need to balance economic opportunities presented by data centers with the responsibility of protecting other ratepayers to ensure they are not burdened with the cost of infrastructure installations intended to serve the end user. The docket is titled “In the Matter of the Commission’s Inquiry and Review of the Existing Rate Classifications and other Potential Issues relating to Data Centers” (Docket No. E-00000A-25-0069).  Opening a docket is the first step in allowing utilities, stakeholders, and the general public to comment on the subject.

 “To date in Arizona, the data center industry is paying its fair share of expansion of power generation and infrastructure under existing utility rate structures and Commission practices,” said Chair Thompson.  “I believe it's important that the ACC be proactive in reviewing existing policies and potentially forming new policies to continue to safeguard ratepayers and to ensure that large users like data centers shoulder the costs of building new electricity generation and infrastructure that solely benefits a particular business. Our utilities are currently having a challenging time meeting the generational challenges of existing customers. We need to explore potential solutions for developing behind-the-meter solutions to meet large customer needs and growth that don't jeopardize the integrity of our grid.” 

 Arizona is a magnet for new businesses, including data centers, in part because of the state’s dependable and resilient electric grid.  U.S. News and World Report ranks Arizona as 7^th in the nation for electric grid reliability.  The Commission works vigorously to ensure that our regulated utilities are not only prepared to produce enough electricity to meet peak demand during the hot summer months, but also to expand generation and infrastructure in an efficient manner to handle the influx of new residential, commercial, and industrial growth. During Arizona’s record-breaking summer in 2024, there were ZERO major power outages reported – a major power outage is defined as an outage that affects at least 50,000 customers or interrupt service of 300 megawatts or more.  The Commission remains committed to maintaining the reliability of the state’s power grid and encouraging improvements to Arizona’s energy infrastructure to create a more robust grid.