Phoenix, Ariz.— Vice Chairman Nick Myers of the Arizona Corporation Commission confirmed with Tucson Electric Power Company (TEP) that a planned data center with “green new deal” commitments entering its service territory will not drive-up costs for its existing customers.   

“Upon reading the data center’s 100% renewable energy announcement, I immediately filed a letter questioning TEP about the announcement’s impact on TEP customers,” stated Vice Chair Myers. “Data centers certainly have the right to have their own corporate goals; however, as a regulator, I cannot allow these goals to drive up costs for other customers.”

In TEP’s response, the company explained that it will not serve the data center exclusively with renewable energy but with its existing and planned energy portfolio. Further, TEP stated it does not plan to add generation to serve the customer beyond the resources already planned to be developed in its 2023 Integrated Resource Plan (IRP).

“I was pleased to hear that the data center plans to purchase renewable energy credits (RECs) to work towards its commitments, which has no impact on other customers” said Vice Chair Myers. “TEP also confirmed that any new renewable generation the data center may need beyond the initial 286 MW will be paid fully by the data center. This way, growth pays for growth, as it should be.”  

At the Commission’s December 3, 2025, regular open meeting the Commission voted 4-1 to approve TEP’s special agreement for electric service with the planned data center (Project Blue) developed by Beal Infrastructure Group and its affiliate Humphrey’s Peak Power, LLC (E-01933A-25-0187).

For more information, please contact Vice Chair Myers at myers-web@azcc.gov.