Phoenix has quietly become the second-largest data center market in the US, trailing only Northern Virginia. That distinction comes with a cost that’s measured in gigawatts and gallons.
Arizona’s data center cluster, spanning over 100 to 150 facilities across the metro area, currently draws roughly 1.5 GW of power and accounts for approximately 7.4% of the state’s total electricity consumption. And the AI boom is about to make those numbers look quaint.
The power problem is big. The water problem might be bigger.
Arizona’s data centers consumed around 10.5 TWh of electricity in recent tallies. Projections suggest that figure could triple statewide as new AI-focused facilities come online.
The state attracted data center operators for sensible reasons: robust fiber-optic infrastructure, relatively cheap energy, and minimal natural disaster risk.
