Arizona’s Maricopa County is set to become the nation’s second-largest data center hub by 2028, as the state grapples with surging electricity demands and infrastructure challenges. The county has approved at least 20 new data center projects, trailing only Virginia’s Loudoun County in scale.
Arizona Public Service, the state’s largest utility provider, projects data centers will account for 55% of its future electricity needs. The utility board recently approved an 8% rate hike to bolster power infrastructure but rejected a plan to electrify parts of the Navajo Nation, citing concerns over cost allocation to customers. The expansion comes as Arizona markets itself as an ideal location for data centers, offering tax incentives and relatively cheap power since 2013.