Data centers in Arizona

TEP's general rate case evidentiary hearing was held April 22 through May 12, 2026, with closing briefs filed in July 2026 after TEP cut its original request from about 172 million dollars to roughly 135 million dollars with a 9.75 percent return on equity. Arizona Attorney General Kris Mayes intervened and has argued for a much smaller increase, and Consumer Reports has also filed comments opposing the request. A final Arizona Corporation Commission decision is due by November 17, 2026; TEP had requested new rates take effect September 1, 2026, but that effective date has already passed without a decision.

APS's general rate case evidentiary hearing ran from May 18 through July 7, 2026, one of the longest in Arizona Corporation Commission history, with about 36 intervenors, more than 50 witnesses and over 300 exhibits. An administrative law judge is expected to issue a recommended opinion and order by late November 2026, after which the full Commission must vote by December 31, 2026; key contested issues include a proposed Extra High Load Factor rate for large industrial and data center customers and a Formula Rate Adjustment Mechanism.

The Arizona Corporation Commission approved TEP's contract to serve the 286 MW Project Blue data center near Tucson on a 4 to 1 vote in December 2025, over two hours of public opposition centered on water use. TEP says the data center pays the standard largest-customer rate with minimum bills and termination fees so the buildout cost stays off residential bills.

SRP's elected board approved a 3.5 percent average residential increase, about 5.61 dollars a month for a typical home, effective with November 2025 bills, along with a higher fixed monthly service charge.