Arizona could end up relying more on natural gas as data centers demand more energy

Arizona could end up relying more on natural gas as data centers demand more energy

News ClipKJZZ·AZ·10/27/2026

Arizona Public Service reports that data centers accounted for about half of its energy-demand growth this year, pushing the utility to plan for substantially higher electricity needs. Officials and energy experts say natural gas may be necessary for reliable power, while climate advocates warn that expanded gas infrastructure could prolong fossil-fuel emissions.

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Gov: Arizona Corporation Commission, State of Arizona

Arizona Public Service used about 90% of its planned capacity during the summer and expects peak demand to rise 40% by 2031, with data centers driving much of the increase. The utility’s growing power needs are prompting plans for additional natural-gas generation across Arizona.

ASU energy expert Clark Miller and Gov. Katie Hobbs said natural gas can provide reliable, around-the-clock electricity while renewable capacity expands. Sierra Club advocate Sandy Bahr criticized the approach because methane emissions and long-lived gas infrastructure could delay the state’s transition away from fossil fuels, while Arizona Corporation Commission Chair Nick Myers prioritized reliability and affordability over emissions reductions.

Arizona could end up relying more on natural gas as data centers demand more energy | Data Center Signal