--- title: "Data Centers in Arizona Statistics 2026: Power, Tax and Water" date: 2026-10-23 author: "Brad Nickel" featured_image: "https://tricitylocalnews.com/wp-content/uploads/2026/10/data-centers-arizona-statistics-v2.jpg" categories: - name: "Cloud" url: "/cloud.md" tags: - name: "Statistics" url: "/tag/statistics.md" --- # Data Centers in Arizona Statistics 2026: Power, Tax and Water Pew Research Center counts **184** data centers in Arizona, **98** currently operating and **86** planned, in Data Center Map listings as of Feb. 19, 2026. CBRE Research puts the Phoenix market at **1,069.2 MW** of inventory in Q2 2026, with **12.1 MW** of available capacity. Data centers were about **5%** of APS’s total peak energy demand in 2025. APS also shows an uncommitted queue of **19.0 GW** against a 2025 peak load of **8.7 GW**. Governor Katie Hobbs signed a bill under which no new CDC certification applications will be accepted from **July 1, 2026**, through **June 30, 2029**. The sections below cover counts, megawatts, utility load, rate rules, the paused tax exemption and water use, with each figure attributed to the body that published it. ## Key Takeaways - Arizona has **184** data centers, of which **86** are planned, about **47%** of the state total. - APS’s **19.0 GW** uncommitted queue is about **2.2 times** its **8.7 GW** 2025 peak load. - Data centers were about **5%** of APS’s total peak energy demand in 2025, and large data centers contributed **5.1%** to SRP’s summer 2025 peak demand record. - Phoenix had **12.1 MW** of available capacity in Q2 2026, about **1.1%** of its **1,069.2 MW** inventory. - No new CDC certification applications will be accepted from **July 1, 2026**, through **June 30, 2029**. - WRA’s 2035 cooling-water estimates for the APS, SRP and TEP territories add up to **9,314 acre-feet** a year. ## Editor’s Choice - Phoenix inventory: **1,069.2 MW** of data center inventory in Q2 2026, per CBRE Research. - Phoenix absorption: **442 MW** absorbed in the first half of 2026, amid **1.7 GW** under construction, per JLL. - APS uncommitted queue: **19.0 GW**, against a 2035 forecasted peak load of **12.0 GW**. - SRP generation capacity: approximately **8,000 MW**, with some larger data centers at a **200 MW** capacity load. - APS capacity inquiries: up to **15,000 megawatts** of new capacity, per Western Resource Advocates. - EdgeCore Mesa campus: a minimum of **450 MW** of critical load at full build-out. ## Data Centers in Arizona by Operating Status - Arizona has **184** data centers in the state table: **98** currently operating and **86** planned. - Operating facilities make up about **53%** of the Arizona total. - Virginia and Texas have the most planned data centers (**287** and **170**), followed by Georgia (**141**), Illinois (**123**) and Arizona (**86**). - Planned sites are about **42%** of Virginia’s total and about **36%** of Texas’s, against about **47%** in Arizona. - The planned category includes data centers listed as under construction, planned or land banked. | State | Total | Currently operating | Planned | |---|---|---|---| | Virginia | 685 | 398 | 287 | | Texas | 466 | 296 | 170 | | California | 331 | 277 | 54 | | Illinois | 262 | 139 | 123 | | Georgia | 235 | 94 | 141 | | Ohio | 223 | 166 | 57 | | Arizona | 184 | 98 | 86 | *Source: Pew Research Center, Data Center Map data as of February 2026* ### About This Data - Compiled from 15 sources: 6 Arizona state agencies and officials, 2 utilities, 1 data center developer, 2 research and advocacy groups, 2 commercial real estate releases, 1 tax advisory alert and 1 local news report. - Dated sources run from August 2025 to September 2026, alongside an undated developer release and current utility and state program pages. - Government, utility, company, research and real estate publications make up most of the list, alongside 1 tax advisory alert and 1 local news report; paid market-research reports were excluded. - Figures are reviewed on a rolling basis and updated when sources publish new editions. ### How many data centers are in Arizona? Arizona has **184** data centers in Data Center Map listings as of Feb. 19, 2026, with **98** currently operating and **86** planned, according to Pew Research Center. The figure counts facility listings rather than megawatts, so a small site and a large campus each count once. ## Phoenix Data Center Market vs Other Markets - Phoenix held **1,069.2 MW** of data center inventory in CBRE Research’s Q2 2026 data. - Northern Virginia (**4,496.5 MW**), Atlanta (**1,803.2 MW**) and Dallas-Fort Worth (**1,432.8 MW**) held more inventory than Phoenix among the eight primary markets. - Phoenix’s inventory is about **24%** of Northern Virginia’s. - JLL’s North American Data Center Report, Midyear 2025, ranked metro Phoenix second in North America for data center development, with Dallas-Fort Worth third. - APS says the Phoenix metro area ranks second in North America for proposed data center development. INVENTORY · Source: CBRE Research, Q2 2026 INVENTORY CBRE Research · Q2 2026 Data Center Inventory by Primary Market, Q2 2026 (MW) Northern Virginia 4,496.5 Atlanta 1,803.2 Dallas-Fort Worth 1,432.8 Phoenix 1,069.2 Chicago 910.6 Silicon Valley 509.2 Hillsboro, OR 491.4 New York/Tri-State 190.0 0 1K 2K 3K 4K 5K SOURCE CBRE Research, Q2 2026 View the data| Market | Value (MW) | |---|---| | Northern Virginia | 4,496.5 | | Atlanta | 1,803.2 | | Dallas-Fort Worth | 1,432.8 | | Phoenix | 1,069.2 | | Chicago | 910.6 | | Silicon Valley | 509.2 | | Hillsboro, OR | 491.4 | | New York/Tri-State | 190.0 | CBRE counts built megawatts in a metro market, while Pew counts facility listings across a state, so the two rankings answer different questions. Broader [data center statistics](https://tricitylocalnews.com/data-center-statistics/) and rankings of the largest data centers in the US rest on the same split between sites and megawatts. ## Recent Developments - **September 8, 2026:** CBRE’s report on the first half of 2026 put Phoenix inventory at **1,069.2 MW**, with **12.1 MW** of available capacity. - **August 31, 2026:** Attorney General Kris Mayes called for a statewide pause on the approval and construction of new data centers, particularly hyperscale AI projects, and announced a town hall in Ahwatukee on October 14, 2026, about Menlo Digital’s planned hyperscale data center project. - **August 21, 2026:** A federal two-year Colorado River plan requires Arizona to cut its consumption by **760,000 acre-feet**. - **August 12, 2026:** The Arizona Corporation Commission voted unanimously to approve a cooperative process that protects existing ratepayers from the costs of new transmission and infrastructure for new large-load customers. - **August 11, 2026:** JLL reported that Phoenix absorbed **442 MW** in the first half of 2026, amid **1.7 GW** under construction. ## Phoenix Data Center Capacity, Pipeline and Campuses - Phoenix’s **12.1 MW** of available capacity in CBRE’s Q2 2026 data is about **1.1%** of the market’s inventory. - Approximately **1,300 MW** of data center development was under construction and **4,154 MW** was planned, according to the Arizona Corporation Commission’s September 2025 release. - Phoenix’s data center project pipeline has more than tripled since 2020, with about **5 GW** of projects being built or still in planning. - A developer announced a **2,000-acre** property in Buckeye with plans for a **$20 billion** data center park. - EdgeCore’s Mesa campus had one operational data center and two more under construction, totaling **206 MW** of critical load, at the time of its **$1.9 billion** debt financing release. AVAILABLE CAPACITY · Source: CBRE Research, Q2 2026 AVAILABLE CAPACITY CBRE Research · Q2 2026 Available Data Center Capacity by Primary Market, Q2 2026 (MW) Northern Virginia 10.8 Atlanta 29.5 Dallas-Fort Worth 39.6 Phoenix 12.1 Chicago 20.0 Silicon Valley 21.2 Hillsboro, OR 1.1 New York/Tri-State 13.7 0 8 16 24 32 40 SOURCE CBRE Research, Q2 2026 View the data| Market | Value (MW) | |---|---| | Northern Virginia | 10.8 | | Atlanta | 29.5 | | Dallas-Fort Worth | 39.6 | | Phoenix | 12.1 | | Chicago | 20.0 | | Silicon Valley | 21.2 | | Hillsboro, OR | 1.1 | | New York/Tri-State | 13.7 | Dallas-Fort Worth had **39.6 MW** of available capacity and Hillsboro, OR had **1.1 MW**, so Dallas-Fort Worth had about **3.3 times** Phoenix’s available capacity. The Phoenix pipeline below, part of national data center construction statistics, comes from different firms and dates, so its figures are listed side by side rather than added together. | Measure | Value | Publisher | As of | |---|---|---|---| | Phoenix absorption (MW) | 442 | JLL | H1 2026 | | Phoenix under construction (GW) | 1.7 | JLL | H1 2026 | | Metro Phoenix under construction (MW) | approximately 1,300 | Arizona Corporation Commission | September 2025 | | Metro Phoenix planned (MW) | 4,154 | Arizona Corporation Commission | September 2025 | | Phoenix pipeline under construction or planned (GW) | about 5 | Arizona Corporation Commission | September 2025 | | EdgeCore Mesa campus at full build-out (MW) | minimum of 450 | EdgeCore | Financing release | *Source: JLL, August 2026; Arizona Corporation Commission, September 2025; EdgeCore Digital Infrastructure* ## APS Data Center Load and Peak Demand Forecast - Data centers were about **5%** of APS’s total peak energy demand in 2025. - APS’s 2025 peak load was **8.7 GW**, and its 2035 forecasted peak load is about **38%** higher. - APS’s uncommitted queue of **19.0 GW** represents potential projects that could more than double current demand. - A share of about **5%** of the 2025 peak works out to roughly **0.44 GW** of data center load. - APS says the average data center in its service territory needs as much energy as about **64,000** homes and operates near peak capacity **24** hours a day, **7** days a week. - APS puts a data center at approximately **400 MW**, with requests up to **2,000 MW**. - APS says it does not yet have enough power plants, transmission lines and key infrastructure to serve all these new requests. - Utility peak shares sit alongside national [data center energy consumption](https://tricitylocalnews.com/data-center-energy-consumption-statistics/) estimates, which measure annual electricity use rather than peak demand. GIGAWATTS · Source: Arizona Public Service, 2025 peak and 2035 forecast GIGAWATTS Arizona Public Service · 2025 APS Peak Load, 2035 Forecast and Uncommitted Queue (GW) 2025 peak load 8.7 2035 forecasted peak load 12.0 Uncommitted queue 19.0 0 4 8 12 16 20 SOURCE Arizona Public Service, 2025 peak and 2035 forecast View the data| APS measure | Value (GW) | |---|---| | 2025 peak load | 8.7 | | 2035 forecasted peak load | 12.0 | | Uncommitted queue | 19.0 | > **By the numbers:** Data centers’ share of about **5%** of APS’s **8.7 GW** 2025 peak works out to roughly **0.44 GW**, while APS’s uncommitted queue stands at **19.0 GW**. The queue holds requests APS has not committed to serve, so it measures interest in Arizona power rather than load the utility has agreed to deliver. ### How much power do Arizona data centers use? APS says data centers were about **5%** of its total peak energy demand in 2025, and SRP says large data centers contributed **5.1%** to its summer 2025 peak demand record. APS adds that the average data center in its service territory needs as much energy as about **64,000** homes and operates near peak capacity 24 hours a day, 7 days a week. ## SRP Data Center Load and Large Customer Growth - Large data centers contributed **5.1%** to SRP’s summer 2025 peak demand record. - Data centers are projected to be SRP’s fastest-growing customer segment. - SRP’s current generation capacity is approximately **8,000 MW**, and some of the larger data centers on its system have a capacity load of **200 MW**. - One **200 MW** data center equals about **2.5%** of SRP’s generation capacity. - Between 2025 and 2035, SRP projects its large customer load will grow by approximately **2,700 megawatts**, with roughly **2,200 megawatts** of new load attributed to data centers. - Data centers account for about **81%** of SRP’s projected large customer load growth. - SRP says Maricopa County is on track to become one of the largest markets for data centers in the United States. SRP’s growth projection and APS’s queue cover different territories, so the two should not be added together. ## TEP and Rural Cooperative Data Center Demand - TEP reported that it has received over **10,000 megawatts** of interconnection requests. - As of early 2025, TEP was developing contracts for **300 megawatts** of new data center load, which could come online starting in **2027**. - TEP expects negotiations with additional customers representing approximately **600 megawatts** of new load in the 2030 timeframe. - The distribution cooperatives that filed the joint application say they are in talks with several prospective large-load businesses looking to build new facilities in their service territories. - APS has noted that the data centers historically located in Central Arizona provide [cloud computing](https://tricitylocalnews.com/cloud-computing-statistics/) services rather than AI, so their load grows more steadily. | Utility | Measure | Megawatts | |---|---|---| | APS | Inquiries for new capacity | up to 15,000 | | APS | Net summer peak load | approximately 8,000 | | SRP | Large customer load growth, 2025 to 2035 | approximately 2,700 | | SRP | Data center share of that growth | roughly 2,200 | | TEP | Interconnection requests | over 10,000 | | TEP | New data center load under contract development | 300 | | TEP | Additional load in expected negotiations, 2030 timeframe | approximately 600 | *Source: Western Resource Advocates, August 2025* The WRA fact sheet dates from August 2025, more than 12 months before publication, and its APS figure is a net summer peak, a different measure from the 2025 peak load APS now publishes. ## Who Pays for Data Center Grid Upgrades in Arizona - In its June 2025 rate request to the Arizona Corporation Commission, APS proposed a more than **45%** rate increase for these extra-large energy users, including data centers. - APS’s other proposals include updates to its extra high load factor (XHLF) rates, minimum bill and collateral requirements. - APS developed a high load factor rate in **2017** to ensure rates paid by these customers reflected the cost to serve them. - In 2025, SRP introduced the Large Customer Integration Process (LCIP), under which new large-load customers must pay upfront for their upgrade costs. - SRP’s E-67 price plan, approved in 2025, bills new accounts with at least **20 MW** of forecasted load on the greater of actual demand or **80%** of forecasted load. - The Arizona Corporation Commission hosted an [initial workshop](https://azcc.gov/news/home/2026/04/20/acc-large-load-data-center-workshop-highlights) on large load and data center customers on **April 16, 2026**. | Utility or regulator | Rule for large loads | Status | |---|---|---| | APS | Rate increase of more than 45% for extra-large energy users | Proposed in June 2025 rate request | | APS | XHLF rate, minimum bill and collateral updates | Proposed | | SRP | Upfront payment for upgrade costs (LCIP) | Introduced in 2025 | | SRP | Minimum bill at the greater of actual demand or 80% of forecast load, new accounts with 20 MW or more of forecasted load (E-67) | Approved in 2025 | | Arizona Corporation Commission | Large-load process for electric cooperatives | Approved August 12, 2026 | *Source: Arizona Public Service, Salt River Project and Arizona Corporation Commission, 2025 and 2026* > **Worth noting:** APS’s more than **45%** increase for extra-large energy users is a proposal in its June 2025 rate request to the Arizona Corporation Commission. SRP’s minimum bill at **80%** of forecasted load, by contrast, covers new accounts of at least **20 MW** under its E-67 plan, approved in 2025. ### Do data centers raise APS or SRP electric bills? APS says its proposed increase is meant to ensure data centers continue to pay for their costs of service and avoid shifting those costs to families or small businesses. SRP says new large-load customers pay upfront for their upgrade costs so these costs are not paid by other SRP customers. Both are utility statements, and APS proposed its increase in a June 2025 rate request. ## Arizona Data Center Tax Exemption and the 2026 Moratorium - Arizona’s CDC incentive, administered by the Arizona Commerce Authority, provides Transaction Privilege Tax (TPT) and use tax exemptions at the state, county and local levels on qualifying purchases of CDC equipment. - An owner, operator or qualified co-location tenant can receive the exemptions for up to ten full calendar years, or up to **20** for a Sustainable Redevelopment Project. - A facility in Maricopa or Pima County needs a capital investment of at least **$50 million** within five years of certification, against **$25 million** in any other county, and an Existing CDC needed at least **$250 million** invested between September 2007 and August 2013. - Governor Katie Hobbs said, in [remarks published by her office](https://azgovernor.gov/office-arizona-governor/news/2026/01/governor-katie-hobbs-lays-out-plan-lower-costs-and-put-arizona) on January 13, 2026, that her executive budget would eliminate the Data Center Tax Exemption, which she called a corporate handout. - As part of the Fiscal Year 2027 budget, no new CDC certification applications will be accepted from **July 1, 2026**, through **June 30, 2029**. MINIMUM CAPITAL INVESTMENT · Source: Arizona Commerce Authority, Computer Data Center program, 2026 MINIMUM CAPITAL INVESTMENT Arizona Commerce Authority · 2026 Arizona CDC Investment Thresholds ($ millions) Maricopa or Pima County 50 Any other county 25 Existing CDC (invested 2007 to 2013) 250 Greenfield Sustainable Redevelopment Project 200 0 50 100 150 200 250 SOURCE Arizona Commerce Authority, Computer Data Center program, 2026 View the data| Certification path | $ millions | |---|---| | Maricopa or Pima County | 50 | | Any other county | 25 | | Existing CDC (invested 2007 to 2013) | 250 | | Greenfield Sustainable Redevelopment Project | 200 | > **Key finding:** KPMG’s state tax alert says computer data centers that had completed state certification requirements and qualified for Arizona incentives prior to the moratorium implementation will retain their tax preferences, as the freeze applies only to new applications. The pause stops new certifications for three years without removing exemptions already granted. ### Does Arizona still offer a data center tax exemption? Data centers certified before the moratorium keep their tax preferences, but no new CDC certification applications will be accepted from **July 1, 2026**, through **June 30, 2029**. Certified facilities can hold the exemptions for up to ten full calendar years, or up to **20** for a Sustainable Redevelopment Project. ## Arizona Data Center Water Use - WRA estimates the new cooling water demand of data centers served by SRP could be **1,020 acre-feet** a year in 2030 and **4,049 acre-feet** in 2035. - WRA’s 2035 estimates for the APS, SRP and TEP territories add up to **9,314 acre-feet** a year. - That total is about **43%** of the **21,600 acre-feet** of on-site water use WRA projects for new data centers across the Interior West in 2035. - ADWR does not track water usage for most data centers, and the companies are not required to publicly report usage in Arizona. - A September 2025 report from Ceres estimated that Phoenix-area data centers use **385 million gallons** annually for cooling, rising to **3.3 billion gallons** including the water needed for power generation. - A February 2026 report from ASU’s Kyl Center for Water Policy found no evidence that water use by electricity suppliers has increased in central Arizona. - WRA’s 2035 total equals about **1.2%** of the **760,000 acre-feet** Arizona must cut from its Colorado River consumption under the federal two-year plan. COOLING WATER · By Utility Territory · Source: Western Resource Advocates, August 2025 COOLING WATER Western Resource · 2025 Projected Data Center Cooling Water (acre-feet per year) By Utility Territory APS, 2030 2,856 APS, 2035 3,312 SRP, 2030 1,020 SRP, 2035 4,049 TEP, 2035 1,953 0 1K 2K 3K 4K 5K SOURCE Western Resource Advocates, August 2025 View the data| Utility territory and year | Acre-feet per year | |---|---| | APS, 2030 | 2,856 | | APS, 2035 | 3,312 | | SRP, 2030 | 1,020 | | SRP, 2035 | 4,049 | | TEP, 2035 | 1,953 | Governor Hobbs noted that the average Arizona family pays one cent for every gallon of water used in their home, and if data centers paid the same amount, the state could make a multi-million dollar deposit into the Colorado River Protection Fund every year. KJZZ, reporting with Cronkite News, did the math: Raising **$6 million** would require **600 million gallons**, or **1,841 acre-feet**. National data center water usage estimates also mix cooling-only and power-inclusive scopes, so compare them with care. ### How much water do Arizona data centers use? ADWR does not track water usage for most data centers, and companies are not required to publicly report it in Arizona. Ceres estimated Phoenix-area data centers use **385 million gallons** a year for cooling and **3.3 billion gallons** including power generation. WRA’s cooling-only estimates for the APS, SRP and TEP territories reach **9,314 acre-feet** a year by 2035. ## Conclusion Arizona has **184** data centers, **86** of them planned, and APS shows a **19.0 GW** uncommitted queue against an **8.7 GW** 2025 peak load. Data centers were about **5%** of APS’s 2025 peak demand and large data centers **5.1%** of SRP’s summer 2025 peak record. The gap between today’s share and the requested load is the figure to watch, because it shows how much of the Arizona build-out is still only a request. New CDC certification applications are paused through **June 30, 2029**, and APS proposed a more than **45%** rate increase for extra-large energy users in its June 2025 rate request. Rate decisions by the Arizona Corporation Commission and whether lawmakers act on the Attorney General’s call for a pause will shape how much of the queue becomes connected load.