AI data centers need a lot of power. That creates challenges for electric companies in the West

Challenges for Electric Companies

AI data centers are being built in various locations, including cities, towns, and even cattle ranches, and they require a significant amount of power.

This creates new challenges for utility companies, such as Arizona Public Service, the largest utility in Arizona.

"It's hard in the world we live in today to live without electricity,"

said Johnny Penrod, who works for Arizona Public Service.

The demand for power in Arizona is expected to continue rising, particularly in the desert where temperatures often exceed 110 degrees in the summer.

"Here, we can do something to make sure we keep the lights on for our customers,"

said Penrod.

Meeting this demand is crucial, as it can be a matter of life and death in the extreme desert heat.

Author's summary: AI data centers pose challenges for utilities.

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Colorado Public Radio Colorado Public Radio — 2025-10-14