With the rise in energy demands from data centers, there is growing concern among residents about potential increases in their energy bills. A new natural gas power plant could become a pivotal solution to this issue.
The Desert Sun Power Plant, a 2,000-megawatt facility located near Gila Bend, is planned to be developed in two stages. While the initial phase’s costs will be distributed among all users, the second phase introduces an innovative approach.
Arizona Public Service (APS), the company responsible for the plant’s construction, aims to implement a subscription model for the second phase, targeting large industrial clients, including data centers.
According to Jacob Tetlow, APS’s Executive Vice President, “They actually front some of the financials to help build it. They’re committing to taking that energy for the long term. And then they get rights to that energy.”
This proposal is pending approval from the state utility regulatory body. Details on the plant’s total construction cost or subscription fees remain undisclosed.
The plant will receive its gas supply from Texas via the Transwestern pipeline, a project announced earlier in August.
