Who pays for Tucson’s data center boom?

The U.S. data center boom is raising concerns in Tucson, Arizona, about rising utility costs and the strain on limited resources. Tucson residents are questioning whether the energy demands of new data centers could add pressure to already rising electricity bills. Tucson Electric Power (TEP) is seeking a 14% rate increase, citing the need to recover infrastructure costs and meet the high reliability demands of data centers. However, Arizona Attorney General Kris Mayes has intervened, arguing that the agreement between TEP and data center developer Beale Infrastructure allows them to change rates without approval. Residents and advocacy groups, such as the Tucson Democratic Socialists of America, are exploring the possibility of a municipally-owned utility as an alternative to the current system, which they believe is not working for low-income families. Meanwhile, President Trump has proposed a new strategy requiring tech companies to build their own power plants to ensure electricity supply while lowering prices for the community.