Places

Phoenix, AZ

Phoenix, Arizona is a major competing market for data center development in the Southwest region, drawing some prospective Texas data center projects due to lower power costs and available land.

Referenced in 6 briefingsLast referenced: June 23, 2026

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June 23, 2026

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The Deliverable Megawatt Wins: Microsoft Locks 20 Years of Pecos Gas

JLL's Andrew Batson says nearly all California-generated demand now flows to Phoenix and Las Vegas.

April 2, 2026

West Texas Becomes the AI Corridor While the Rest of America Waits

Arizona's datacenter cluster offers reassuring data: despite nearly 200 facilities operating or planned, industrial water usage in the Phoenix metro remains flat.

March 19, 2026

Communities Aren't Anti-Datacenter. They're Anti-Surprise.

A 2025 Ceres analysis found Phoenix-area datacenter water use at 385 million gallons annually, representing less than 0.5% of regional total consumption, with agriculture consuming over 70% statewide.

March 16, 2026

"Bring Your Own Power, Water Plan, and Community Deal"

Phoenix Mayor Kate Gallego warning that approving every requesting facility would spike electricity demand to 19,000 MW, more than double Arizona's grid record peak.

March 11, 2026

Texas Developers Need No Permission. Rural Counties Are Changing That.

A Ceres analysis estimated active Phoenix-area datacenters consumed roughly 385 million gallons annually last summer.

February 19, 2026

Water, Not Power, Will Decide Who Wins the Texas Data Center Race

Phoenix's nearly 60 data centers already consume approximately 177 million gallons per day.

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ERCOT

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Texas

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