ACC Chair Kevin Thompson’s Industry Ties Raise Questions About Who Benefits From Arizona’s Data Center Boom

PHOENIX — As data center development accelerates across Arizona, new reporting on higher electricity costs and data center demand is renewing scrutiny of how the state regulates its large energy users.

A 12News analysis of Arizona Public Service (APS) data found that roughly $587 million in costs tied to large energy users, including data centers, may have been shifted onto residential and smaller business customers between 2023 and 2025. Attorney General Kris Mayes has called on the Corporation Commission to investigate whether APS customers have been paying costs that should have been paid by data centers and other large users.

As the Corporation Commission faces continued pressure on higher energy costs, Commissioner Thompson’s own record raises questions about whose side he’s on.

Commissioner Thompson has been an “outspoken supporter” of data centers and voted to approve an energy supply agreement between Tucson Electric Power and the developers of the controversial Project Blue data center. His own consulting business worked with a data center client, EdgeCore Digital Infrastructure, which operated a facility in Mesa. Thompson has also dismissed concerns about data center water usage, even mocking critics who raised the issue. When Thompson served on the Mesa City Council, the city was unofficially known as “Data Center Alley,” and he welcomed and approved developments from Google and Facebook. 

Diali Avila, Climate Power Arizona State Director, released the following statement:

“The 12News analysis warns that Arizona families may already be paying for data centers, and the officials elected to regulate energy costs are looking the other way. Voters deserve to know who is paying for this demand, and who is profiting from it. This midterm election, Arizonans will hold accountable those who put developers ahead of ratepayers.”

Thompson’s support for the data center industry has been matched by a voting record that has made life more expensive for Arizonans:

• In February 2024, Thompson voted to approve a rate increase for Arizona Public Service customers that raised the average monthly electric bill by up to $12.  
• In 2023, Thompson voted to approve a Tucson Electric Power rate hike that increased the average monthly bill by nearly $10. 
• In December 2024, Thompson voted for a “policy statement” to allow utilities to seek yearly rate adjustments without going through a full rate case procedure. Critics argued the new process would weaken the opportunity for the public to weigh in on rate hikes.

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