Arizona’s public utilities commission, the Arizona Corporation Commission (ACC), has launched a formal review into the impact that rapid data center growth is having upon energy infrastructure and local ratepayers across the state.

Launched last week by ACC chair Kevin Thompson, the review will consider whether existing electricity pricing models and regulations ensure that large load consumers, like data centers, are paying their fair share of the infrastructure costs required to support their energy usage.

Thompson said that, at present, data centers in the state are paying their share, however, a review was needed as the commission must take proactive efforts to protect residential and small business customers from footing the bill for future expansion.

“I believe it's important that the ACC be proactive in reviewing existing policies and potentially forming new policies to continue to safeguard ratepayers and to ensure that large users like data centers shoulder the costs of building new electricity generation and infrastructure that solely benefits a particular business,” said Thompson.

Thompson went on to say that the review will support utilities in exploring bespoke options for their power needs, including behind-the-meter agreements for large load users.

The review is now open for public and stakeholder input, which will help inform the decision-making process. The request for comment is the first step in the regulatory process.

Arizona is becoming an increasingly important regional data center hub, with up to 129 data centers currently operating in the state.

In January, Meta finally brought its 2.5 million square feet (232,300 sqm) Mesa, Arizona data center online following years of delays caused by a broader building pause across Meta sites.

In addition to Meta, AWS, Google, and Microsoft all have a presence in the state.