Where Tech Meets Sun: Arizona at the Crossroads of AI and Clean Energy

Reporter: Courtney Smith

PHOENIX— Arizona’s endless sunshine has made it one of the top states for solar energy, and now that same energy is being used to fuel something new: artificial intelligence. 

Across the Phoenix metro area, tech companies are building massive data centers to run AI systems that need thousands of megawatts of power. But the state’s solar industry, while strong, is racing to keep up with the demand. 

According to the Solar Energy Industries Association, Arizona currently ranks fifth in the nation for installed solar capacity with 10,307 megawatts online, enough to power 1.48 million homes. Yet a recent report from the Electric Power Research Institute (EPRI) projects that data centers could consume up to 16.5% of Arizona’s total electricity by 2030, more than double their share 

today. 

That kind of growth raises questions about how Arizona can meet increasing demand while still prioritizing clean energy. 

“Solar gives us an incredible advantage,” said Ankit Jain, Executive Director of the Arizona Solar Energy Industries Association. “But data centers run around the clock. The real challenge is how to store and deliver that power 24/7.” 

Arizona’s utilities are already feeling the strain. Arizona Public Service (APS) says that data centers in the Phoenix region currently draw about 350 megawatts, but if every planned project moves forward, demand could rise to nearly 19,000 megawatts. That’s more power than some small countries use. 

To help close the gap, Arizona has been expanding its battery energy storage systems. The U.S. Energy Information Administration (EIA) reports that the state has nearly 4,000 megawatts of battery capacity online, with another 3,800 megawatts expected by 2026. These batteries help store solar energy during the day and release it at night, a key step for powering AI facilities that never shut off. 

Still, not everyone is convinced that the infrastructure can keep up. 

“We want innovation, but not if it means higher bills for families,” said State Representative Stacey Travers (D-Phoenix). “When these data centers come in, utilities often build new infrastructure. That costs money, and we have to make sure everyday people aren’t the ones footing the bill.” 

While the numbers may seem daunting, experts say Arizona is well-positioned to handle the challenge, as long as it continues investing in renewables. The EIA reports that solar power made up roughly 13% of the state’s total electricity generation in 2024, and that number continues to grow each year.

“This is a moment where technology and sustainability meet,” said Dr. Matthew Green, an energy policy professor at Arizona State University. “If Arizona can figure out how to use solar to power AI efficiently, it could set an example for the rest of the country.” 

For now, the state’s sunny skies remain its biggest advantage, and possibly its most important resource for the future of technology. 

“Artificial intelligence isn’t going anywhere,” Jain said. “The question is, can Arizona’s energy innovation keep up with it?”