Arizona Data Center News

Mar 24, 2026

The Northwest Hasn’t Learned the Lessons of WPPSS (“Whoops”)

Laura Feinstein (Sightline Institute) argues that leaders should avoid building new gas-fired power plants in the U.S. Pacific Northwest and instead prioritize data center flexibility, demand response, energy efficiency, and transmission expansion to address near-term resource adequacy concerns.

Main action and evidence: The piece urges policymakers and regulators to require utilities and large electricity users to exhaust large-load flexibility and demand-side measures before approving fossil fuel infrastructure; cites a September 2025 E3 Phase 1 analysis that reported an 8.7 GW shortfall by 2030 (commonly rounded to 9 GW), which shrinks to roughly 5.6 GW when already planned resources (e.g., Carriger solar, PacifiCorp conversions) are counted. The article highlights alternatives with concrete figures: a Duke University estimate that 3.8 GW could be gained if data centers reduced power about one week per year, and a Sylvan Energy Analytics review showing data-center curtailment can eliminate the gap in multiple scenarios.
Background and concrete details: The article documents utilities’ recent actions and legislative context: PSE has contracted for six new gas turbines (filing redacted), Grant PUD approved a (temporary) 12 MW natural gas plant, PSE’s voluntary demand response currently reduces <2% of peak demand and Washington law requires ramping to 10% savings starting 2027; it notes the U.S. Department of Energy used the E3 report to justify keeping a coal plant online past Dec 31, 2025. The author characterizes the piece as an opinion/analysis urging precaution and policy alternatives rather than announcing a new transaction or partnership.

Mar 24, 2026

Experts Say Data Centers Face Permitting, Economic, and Community Support Obstacles

Chris Jordan (National League of Cities) and Jacob Levin (CTC Technology & Energy) discussed public support, permitting, zoning changes, and potential uses for BEAD nondeployment funds during a National Association of Telecommunications Officers and Advisors webinar.

Main discussion: The panel reported that only one-third of Americans support data centers near their homes and that support would fall further if electricity bills rose (hypothetical $10/month increase halves support). They cited >1,000 hyperscale data centers globally (~600 in the U.S.), primary growth markets (Las Vegas, Salt Lake City, Phoenix), and noted cities are rewriting zoning to define data centers by power draw rather than square footage (examples: Linn County added environmental provisions; Mesa, AZ added water use codes).
Policy and funding context: The panel highlighted the $21 billion BEAD nondeployment fund as potentially eligible for permitting support, fiber/conduit buildout, and AI-related infrastructure, but emphasized that permitted uses will depend on program details and state implementation.

Mar 23, 2026

Communities Are Raising Noise Pollution Concerns About Data Centers

Miguel Yañez-Barnuevo reports on noise pollution from data centers and local policy responses, citing community complaints, health impacts, and mitigation options.

Main announcement/action: The article documents local regulatory and community pushback (e.g., Chandler, AZ adopted a zoning code amendment in 2022 and the Chandler city council unanimously voted against a proposed AI data center in 2025) in response to persistent data center noise; it also reports that 46 planned/permitted/under-construction U.S. data centers will use off-grid gas turbines that run continuously, and cites specific facility details such as an xAI site with 27 natural gas turbines and a Granbury, Texas bitcoin mine with ~60,000 computers located under 100 yards from residences.
Background and factual details: The piece notes the EPA retains legal authority over noise (historically ran the Office of Noise Abatement and Control until defunding in 1981), documents technical facts such as cooling = ~40% of data center electricity use, generators are tested at least once a month, the EPA allows up to 50 hours/year operation of emergency generators in non-emergency testing, and cites measured noise ranges including ~96 dB in large computing warehouses and industrial diesel generators reaching up to 105 dB.

Mar 20, 2026

Exowatt Expands to Austin as Power Constraints Reshape AI Infrastructure

Exowatt opened an 11-acre campus in Austin to accelerate deployment of modular solar energy systems and address power constraints for AI infrastructure.

Main announcement: Exowatt has opened an 11-acre campus in Austin containing 48,000 square feet of office, manufacturing, and warehouse space to speed deployment of its modular solar energy systems; the company also launched ExoRise, a business unit to deliver turnkey “powered land” in solar-rich regions (West Texas, New Mexico, Arizona, Nevada) to compress deployment timelines.
Background and details: The move responds to increasing grid congestion, interconnection delays, and surging AI load requests across US markets (notably Texas and the Southwest); Exowatt previously received a $50 million Series A extension backed by Overmatch Ventures, and company and industry leaders (Hannan Happi, Steven Dickens, Evan Loomis) emphasize modular and behind-the-meter solutions as strategic responses.

Mar 19, 2026

US Roundup: solar-plus-storage projects advance across the country

Google and DTE Energy have announced plans to develop a data centre project in Michigan (Project Cannoli) supported by 1,600MW of solar PV and 450MW of energy storage, with Google funding the resources and DTE operating them under a 20-year Clean Capacity Accelerator Agreement (CCAA).

Main announcement: Google and DTE will deliver 1,600MW of solar PV paired with 450MW of storage (specified as 400MW/1,600MWh BESS plus 50MW of LDES), under a 20-year CCAA; Google will provide DTE with approximately 300MW of Zonal Resource Credits (ZRCs) at no cost and commit US$10 million to programmes to reduce household energy bills in Michigan.
Additional details & background: The filing identifies the site as Project Cannoli (potentially in Van Buren Township); Google recently closed a US$4.75 billion acquisition of TPG Rise Climate’s Intersect Power stake and has announced multi‑billion data centre and AI capital plans (Google cited US$40 billion for three Texas data centres and US$185 billion in AI‑related capex for the year). Related US project announcements in the article include: Sunraycer (620MWdc solar, 477MWh BESS in Texas), Invenergy/SRP SunDog (200MW solar + 200MW/800MWh BESS in Arizona), Idemitsu Azalea (60MW/152MWh operating in California), and Clēnera’s US$304 million financing for the 120MW/400MWh Crimson Orchard project in Idaho.

Mar 19, 2026

Tariffs Add Cost, but Component Shortages Dictate Data Center Timelines

The article reports on fluctuating US tariffs and persistent component shortages affecting data center construction.

Key developments on tariffs (main announcement): The US Supreme Court in February 2026 invalidated portions of certain tariff measures, prompting the Trump administration to issue revised tariff measures while legal challenges continue; affected companies are suing to recover duties paid and litigation remains ongoing, creating uncertainty over import costs and duty recoveries.
Supply-chain and project-level details:DRAM and HBM are reported sold out through 2028, SSD and HDD availability is constrained (Western Digital capacity tight into 2027), and Micron has announced a planned $100 billion fabrication plant in New York; hyperscalers are absorbing most available accelerators and memory, and owners are shifting procurement (increase in OFCI — owner-furnished, contractor-installed) to manage extreme lead times.

Mar 16, 2026

The Frog Is Dead: North America’s Power Grid Faces Its Biggest Reckoning in a Generation

S&P Global Energy warned that North American power demand is accelerating—driven in large part by a surge in data center development—creating a near-term supply crisis that will require rapid investment, permitting, and technology shifts.

Main announcement/action:S&P Global Energy projects much higher near-term electricity demand (now 2.5–3%+ annual growth vs. prior <1%), reports 43 GW of U.S. gas turbine orders in 2025, highlights multi-year turbine backlogs (up to ~5 years), and flags regional investment flows (largest 2025 turbine share to MISO, SPP, and the southeastern U.S.). The firm also called out data center clusters in Columbus, Ohio with new facilities hitting the grid within 3–4 years, and recommends watching natural-gas fuel cells and a wave of IPOs in 2026 for geothermal, SMRs, and distributed generation.
Background and supporting details:Nuclear has bipartisan support but needs project financing and DOE support (DOE pledged a billion-dollar loan commitment for the Crane Energy Center/Three Mile Island restart); S&P identifies >5 GW of potential nuclear uprates with 1–2 GW announced; M&A valuation comparators cited were ~$800/kW (acquired plants 18–24 months ago), $1,500/kW (new-build then), and ~$2,400/kW (current acquisition costs); recent infrastructure transaction cited: $11 billion take-private deal involving GIP, EQT, Qatar Investment Authority, and AES.

Event: Global Power Markets Conference

Date: April 13–15, 2026
Location: Four Seasons Hotel, Las Vegas, Nevada
Agenda/subject: Global power market trends including grid investment, generation mix, storage, and policy (hosted by S&P Global Energy)

Mar 15, 2026

AI data centres face backlash from Mayors in US cities over power use, pollution fears

Mayors in major US cities are challenging tech companies over data centre energy demands and local pollution impacts.

Main action: Mayors (including Tim Kelly of Chattanooga, Kate Gallego of Phoenix and Larry Klein of Sunnyvale) are publicly pressuring big tech over the environmental and infrastructure costs of AI data centres — citing strained power grids, water supply depletion, and local pollution. The White House also convened big tech this month to demand companies bear the cost of powering new data centres. Key project details: xAI is reported to be running at least 18 methane gas turbines at its South Memphis site; Mississippi regulators approved generators despite local resistance; APS warned that approving all proposed data centres would push electricity demand to 19,000 megawatts (more than double the grid’s record peak).
Background and other details: The discussion surfaced at SXSW in Austin, Texas where mayors raised concerns about non-disclosure agreements that keep communities uninformed until late in the process and contrasted more transparent operators (Microsoft, Google) with less transparent firms. Phoenix is highlighted as a magnet for data centres due to tax incentives and low regulation. Reporting sources include AFP and an NBC News poll showing public skepticism about AI.

Mar 13, 2026

Digital Infrastructure Boom Faces Complex Labor Crisis

William Self of Mercer warned that labor — not capital, land, or energy — is the single biggest constraint on the current data center buildout during a Marsh-hosted webinar on March 9.

Main announcement/action:William Self (Mercer) stated the workforce shortfall could be 75,000–140,000 skilled workers over the next few years; he said companies must plan for two talent phases (construction trades vs. long-term operations) and build labor pipelines via apprenticeships, community college partnerships, veteran pipelines, and in-house academies. The webinar was hosted by Marsh on March 9.
Background and details: Self flagged geographic shifts from hubs (Northern Virginia, Phoenix, Dallas) to emerging locales (Columbus, Ohio; South Bend, Ind.; Abilene, Texas; rural Louisiana; Texas Panhandle), noted a resulting boomtown dynamic and service shortfalls, reported cross-industry poaching (power/utilities, defense, process industries), mentioned a risk-based pay response to a “psychological burden” tied to conflict in the Middle East, and cited typical data center technician pay of $60,000–$90,000 annually.

Mar 12, 2026

Valley Data Center to be Acquired with Plans for Major Expansion

RadiusDC has announced a definitive agreement to acquire phoenixNAP’s Phoenix, Arizona data center and colocation business, with closing expected in Q2 2026.

Acquisition details: RadiusDC will acquire the existing Phoenix colocation facility, interconnection infrastructure, and development rights; upon closing RadiusDC will expand DC1 to 8 megawatts of IT power and develop DC2 to add up to 18 megawatts, with initial DC2 phases expected online beginning first half of 2028, positioning the Phoenix I campus to scale to approximately 26 megawatts of total critical IT power capacity; closing is subject to customary closing conditions and regulatory approvals.
Background & advisors: Approximately 80% of phoenixNAP’s global business will remain independently owned and operated by phoenixNAP, which will remain a tenant in the Phoenix facility; financial and legal advisors include J.P. Morgan (financial advisor to RadiusDC), BofA Securities (exclusive financial advisor to phoenixNAP), Gibson Dunn & Crutcher LLP, Snell & Wilmer LLP, and Cleary Gottlieb Steen & Hamilton LLP.

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