Grand Canyon Times

This month, Arizona Corporation Commission Chairman Kevin Thompson opened a new docket addressing the growth of data centers in Arizona. As the demand for energy continues to rise with the expansion of these centers, Thompson emphasized the need to protect ratepayers from bearing the costs of infrastructure designed to serve data centers. The docket, 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), invites utilities, stakeholders, and the public to comment.

“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,” stated Chairman Thompson. He further noted, “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.”

Arizona is seen as an attractive location for new businesses, including data centers, partly due to its reliable electric grid. According to U.S. News and World Report, Arizona ranks seventh in the nation for electric grid reliability. The Commission is committed to ensuring that utilities are ready to meet electricity demand, particularly during the hot summer months, and to efficiently expand generation and infrastructure to accommodate new growth. Notably, during Arizona’s record-breaking summer in 2024, there were zero major power outages.

The Commission is dedicated to maintaining the state's power grid reliability and encouraging improvements to its energy infrastructure to support a more robust grid.