Arizona to study data centers’ impact on electric grid
Arizona regulators will assess data centers’ growing demand on the state's electric grid and its effect on rates.
Image for illustration purposes
USA, Arizona: Utility regulators in Arizona are set to examine how the rapid growth of data centers is impacting the state’s electric grid. Arizona Corporation Commission (ACC) Chair Kevin Thompson initiated the review, focusing on data center energy consumption and the classification of utility rates for the sector.
Thompson emphasized the importance of balancing the economic benefits of data centers with the financial protection of other ratepayers, ensuring that rising costs for energy generation and transmission do not disproportionately affect them. He also stated that the industry is contributing its fair share to power infrastructure expansion under the current rate structures.
However, critics argue that the sector’s increasing demand is straining the grid and driving up costs for residential customers. Consumer advocate Abhay Padgaonkar criticized the commission for approving rate hikes and a surcharge on solar panel users, who he believes help alleviate pressure on the grid by reducing the need for new infrastructure.
Arizona Public Service (APS) has noted that data center growth is a key factor behind its sales increase, despite lower residential demand and energy-saving initiatives. APS’ 2023 plan predicted a 391 % rise in high-load customers, including data centers, over the next two years. In March 2024, APS raised residential bills by 8 %, and rates for commercial users saw increases between 3.4 % and 6.4 %.
Source: KJZZ Phoenix
#Arizona Corporation Commission#Arizona Public Service#Data centers#electric grid#Energy consumption#energy infrastructure#Kevin Thompson. Abhay Padgaonkar#utility rates#utility regulators
