APS
Arizona's largest electric utility; offers 18-24 month large-load connections with solar PPAs at $20-25/MWh for Mesa data centres.
Last refreshed: 6 May 2026 · Appears in 1 active topic
How much longer can APS offer 18-month grid connections as Phoenix runs low on water?
Timeline for APS
Cited for 18-24 month large-load connection windows versus 36-48 in Northern Virginia
Data Centres: Boom and Backlash: Where the next data centres should go- What is APS and why do data centres use it?
- APS (Arizona Public Service) is Arizona's largest electric utility, offering 18-24 month large-load grid connections and solar PPAs at $20-25/MWh. It serves the Mesa and Phoenix metro area, the fifth-ranked global data-centre siting location in 2026.Source: briefing analysis
- How quickly can APS connect a large data centre to the grid in Arizona?
- APS (Arizona Public Service) offers 18-24 month large-load connection timelines in the Phoenix metro area — roughly half the multi-year delays now standard in Northern Virginia or the UK. Combined with solar PPAs at $20-25/MWh, this makes Mesa one of the top five global data-centre siting locations in 2026.Source: Lowdown data-centres briefing
- How many customers does Arizona Public Service have?
- APS serves approximately 1.4 million customers across central and northern Arizona. It is a subsidiary of Pinnacle West Capital Corporation and is subject to Arizona Corporation Commission rate regulation.Source: APS
- Will data centres in Phoenix face water restrictions because of the Colorado River shortage?
- Possibly, over the medium term. The Phoenix metro sits at WRI 'high' to 'extremely high' water stress, and Colorado River allocation reductions under federal shortage declarations are ongoing. APS's service territory is exposed to the same water-constraint risk facing all Arizona water users.Source: WRI Aqueduct
Background
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.
