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Region · Arizona · APS / SRP

Phoenix & Arizona data-center power demand

A desert metro that became one of America's fastest-growing data-center hubs — and now contends with both grid and water limits.

A Gridlas analysis · public EIA / CBRE / CoreSite data · current as of late 2025

~1,380 MW
estimated market capacity
100+
data-center facilities
Top tier
among primary U.S. markets

Greater Phoenix has climbed into the top tier of U.S. data-center markets, with an estimated ~1,380 MW of capacity across 100+ facilities spanning Mesa, Chandler, Goodyear, and the West Valley. Cheap land, tax incentives, and low natural-disaster risk pulled hyperscalers in fast.

Map of Arizona data-center clusters and power plants over the grid
Arizona data-center clusters and generation over the grid. Source: public EIA / CBRE (late 2025); clusters approximate.

The constraint here is twofold: utilities APS and SRP face the same multi-year interconnection pressure as the rest of the country, and the desert adds a water dimension to cooling-heavy AI workloads. Both push new builds toward air-cooling and on-site generation deals.

Phoenix shows that even abundant land and sun don't remove the binding constraint — getting firm power on schedule.

Why it matters

Arizona is a leading indicator for Sun Belt growth: how it balances incentives, grid capacity, and water will shape whether the next wave of Western data-center demand lands here or routes to Texas and the Mountain West.

See the full ranking. The Gridlas report ranks every major U.S. metro by capacity and pipeline, with high-res maps and the underlying dataset — from public EIA, LBNL & ERCOT data.

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Sources: CBRE H2 2025; CoreSite / Brightlio market estimates; U.S. EIA (public domain). Phoenix capacity is a 🟡 estimate — spot-check before quoting. Figures current as of late 2025. See the full methodology & sources.
Gridlas · independent & unaffiliated · built from public data. · Read the full analysis →