ACC to Host Workshop on Large Load Users/Data Center Development

Phoenix, Ariz.- The Arizona Corporation Commission will host a workshop on Large Load User Development in Arizona on Thursday, April 16, 2026, at 9:00 a.m. at 1200 W. Washington Street, Phoenix, Arizona in Hearing Room 1.

Commissioner Kevin Thompson opened the docket on this topic in 2025, to explore different policies for the purpose of creating transparency for rates impacting data center customers and the public. Thompson expressed his desire to further protect residential and small business customers from any future cost shifts associated with the building and service of new infrastructure connected to data centers and other large load users. This could include developing new tariffs, rate structures, and a new tier of customers.

"The Commission must be proactive in reviewing existing policies and potentially forming new policies or improving existing practices to continue to safeguard ratepayers and to ensure that large users like data centers shoulder the costs of building new electricity generation and infrastructure," said Commissioner Kevin Thompson. "The Commission works vigorously to ensure that our regulated utilities are not only prepared to produce enough electricity to meet peak demand during the hot summer months, but also to expand generation and infrastructure in an affordable manner to handle the influx of new residential, commercial, and industrial growth."

Discussion will also include a review of utility mechanisms being implemented with data center and other large load customers in Arizona and other states, as well as behind-the-meter and in-front-of-the-meter solutions that can be provided by independent power producers, and user-funded utility scale generation to help large customers such as data centers meet their power needs.

To date in Arizona, the data center industry has been paying its fair share of expansion of power generation and infrastructure under existing utility rate structures and standard Commission mechanisms and practices. But with approximately 1,300 MW of data center development currently under construction across the state, and more than 4,000 MW of data center development currently in the planning stages, Thompson stressed that it's important to balance the demand for data centers with financial protections for other ratepayers and ensuring they are not bearing the rising energy generation and transmission costs associated with large load customers.

Stakeholders and members of the public may continue to submit comments to the docket. All documents related to this workshop can be found in the Commission's eDocket system, go to https://edocket.azcc.gov and enter Docket No. E-00000A-25-0069.