Data analyst says APS is shifting data center energy costs to others. AG calls for investigation

Data analyst says APS is shifting data center energy costs to others. AG calls for investigation

News ClipKJZZ·Phoenix, Maricopa County, AZ·10/10/2026

Arizona Attorney General Kris Mayes is asking the Arizona Corporation Commission to investigate claims that Arizona Public Service shifted data center-related power costs onto residential and small-business customers. An analysis alleges that about 100 data centers and other large industrial users may have underpaid roughly $600 million, while APS denies that other customers are subsidizing data center usage.

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Gov: Arizona Attorney General, Arizona Corporation Commission

Arizona Attorney General Kris Mayes urged the Arizona Corporation Commission to investigate allegations that Arizona Public Service shifted millions of dollars in costs associated with serving large industrial customers onto its broader customer base. Data analyst Abhay Padgaonkar said roughly 100 data centers and other large users drove nearly all of APS's recent demand growth, potentially underpaying by about $600 million as the utility purchased additional power from outside suppliers.

APS rejected the claims, saying residential and small-business customers are not paying for data center power usage. The commission said APS's spending and power purchases are already being reviewed by staff and 23 intervenors in an ongoing rate case, and that commissioners could not comment on evidence in that proceeding.