Arizona opinion: The economic and environmental value of data centers in Arizona

In just a few short years, AI has revolutionized our lives. It’s also transformed the economic development landscape, with the world’s most advanced technology companies making investments in the hundreds of billions and dollars and creating tens of thousands of high-wage jobs.

With our robust industry base, reliable energy grid, and attractive investment environment, Arizona is well-positioned to capitalize on the AI boom, with the potential for significant new job creation and capital investment.

To be successful, we must be open to all opportunities in the AI sector while continuing to pursue smart, strategic growth.

Data centers represent the backbone of AI development and offer a significant economic opportunity for Arizona. These highly specialized facilities house computer systems, servers, and related hardware that store, process, and manage vast amounts of digital information.

Arizona has become one of the nation’s leading markets for data centers due to our affordable, abundant energy, relative lack of natural disasters, and low-cost business environment. Tech giants, including Amazon, American Express, Apple, Google, Meta, Microsoft, Oracle, PayPal, and more, all operate data centers in Arizona.

As Arizona has welcomed historic investment in data infrastructure, we’ve built valuable relationships with these companies and more, which are pioneering the AI revolution. As this technology continues to develop, and further opportunities emerge, these relationships will be crucial.

Data centers have proven to be valuable economic contributors to local communities as well as important environmental partners. Data center companies commit to substantial renewable energy purchases, providing a stable demand that supports utility companies in upgrading infrastructure and transitioning to low-carbon power generation. These investments help make large-scale clean energy projects financially viable, ensuring a sustainable energy future.

Water sustainability and reuse

Arizona’s data centers are increasing the use of sustainable water sources, improving efficiency, and maximizing water reuse. These facilities incorporate recycled water and rainwater harvesting wherever possible, adding to Arizona’s long legacy of smart water practices.

Recycled water plays an important role in conserving local water supplies. For instance, the City of Tucson, in collaboration with other investors, has laid the foundation for a thriving economic future through strategic and forward-thinking investments in reclaimed water infrastructure. Data centers can contribute to the success of these initiatives by expanding reclaimed water infrastructure, allowing new and existing users to transition their water consumption and minimizing use of potable municipal water.

High-wage job creation and local economic impact

The economic contributions of data centers include substantial capital investments that support local tax bases as well as high-wage, high-skill job opportunities in roles such as data center engineers, network specialists, and engineering operations managers. Additionally, data centers create demand for indirect jobs in supporting industries, including construction, utility trades, building maintenance, equipment repair, and security services.

The capital investments made by data centers stimulate local supply chains, benefiting suppliers, contractors, and construction workers. These projects not only drive immediate economic growth but establish long-term economic stability by attracting further technology investments and development opportunities.

Arizona: A leader in the digital economy

We are in an age of rapid technological growth. The applications of emerging technologies like AI are limitless and will affect nearly every facet of our lives. For Arizona to continue to grow and diversify our economy, we must continue to welcome companies and infrastructure driving the AI revolution, such as data centers. Doing so will grow our industry base, strengthen our position as a leader in the digital economy, and help ensure Arizona’s long-term economic vitality.