APS

APS (Arizona Public Service) is one of the two utilities offering data-centre operators in the Mesa, Arizona metro area 18-24 month large-load connection windows — roughly half the timeline now standard in Northern Virginia — with solar PPAs (power purchase agreements) at $20-25/MWh. This combination of connection speed and low PPA pricing makes the Phoenix metro area fifth on the global data-centre siting shortlist for 2026, behind Finland, West Texas, Aragón, and Abu Dhabi.

APS is the largest electric utility in Arizona, serving approximately 1.4 million customers across the state. It is a subsidiary of Pinnacle West Capital Corporation and operates primarily in the APS territory covering central and northern Arizona (excluding Salt River Project territory). APS has substantial solar generation capacity — Arizona is one of the highest-insolation states in the US — and has been a major PPA counterparty for data-centre operators seeking renewable energy credentialling.

The medium-term risk is the same for all Arizona utilities: the Colorado River water crisis. Data-centre cooling towers in APS territory contribute to aggregate water withdrawal from a system already under shortage declarations. APS's service territory includes areas with WRI "high" to "extremely high" water stress. State and federal pressure on Arizona water allocation is expected to intensify through the late 2020s, which may ultimately constrain data-centre growth in the Phoenix metro regardless of grid availability.