Arizona's Data Centers Demand Energy Growth Amid AI Race with China

Arizona's data centers are projected to require more electricity capacity in the next decade than APS has built in its entire history. The Department of Energy estimates that data center electricity consumption will double or triple by 2028. State Representative Justin Wilmeth advocates for legislation to streamline utility power plant approvals to meet demand, asserting that data centers are crucial for national security and the AI race with China. The House passed bills focusing on AI education and chatbot regulations, reflecting growing legislative attention to AI's role in workforce solutions.

Published Mar 19, 2026

Arizona's data centers will need more electricity capacity in the next decade than APS has developed over its 140-year history. APS currently has a peak capacity of 8,500 megawatts but anticipates a demand of 16,000 megawatts from data centers.

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By 2031, peak load is expected to increase by 40%. State Representative Justin Wilmeth supports bills to facilitate utility power plant construction near data centers to address this demand. He emphasizes the importance of data centers for national security and the AI race with China.

Recent legislation also focuses on AI education and chatbot regulations to protect minors. APS is seeking a 14% rate increase for grid upgrades, but Wilmeth predicts the actual increase will be lower and unrelated to data center expansion.