Phoenix Approved Downtown Data Center Power Plan
The 24-megawatt facility will integrate with existing grid infrastructure near Seventh Avenue and Grant Street.
Updated on Oct. 1, 2026 in Data Centers
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Mayor Kate Gallego confirmed that a new data center project in downtown Phoenix will rely on the city's current power grid. The facility is planned for a site near Seventh Avenue and Grant Street.
Why it matters
The project avoids the need for new transmission lines or dedicated power plants by utilizing existing infrastructure from an adjacent Arizona Public Service substation. This development highlights the integration challenges of scaling high-compute capacity within dense urban environments.
The data center is engineered for a 24-megawatt power capacity, drawing directly from the nearby Arizona Public Service substation. Unlike projects requiring new regional transmission corridors, this facility leverages the current density of the local grid.
The players
Kate Gallego
The Mayor of Phoenix who oversees municipal development and grid integration policy for the city.
Arizona Public Service
The primary utility provider supplying electrical infrastructure and substation access for the downtown facility.
The details
The facility design utilizes the existing power grid capacity situated near the Seventh Avenue and Grant Street site, minimizing the need for additional physical infrastructure. Safety protocols incorporated into the project include specialized cybersecurity measures and enhanced fire protection strategies to address specific local challenges in the downtown area. The developer engaged with local residents to mitigate potential traffic impacts related to the facility’s integration.
Timeline
Thursday: Mayor Kate Gallego discussed the project status during a radio interview.
The Tech Race
This project reflects a strategic shift toward utilizing brownfield urban sites for high-density compute capacity to avoid the complexities of new power transmission buildouts. It marks a contrast to the larger-scale, decentralized projects frequently seen in the city's West Valley.
Downtown residents may notice changes to traffic patterns near Seventh Avenue and Grant Street as the project proceeds. The facility aims to support local digital infrastructure without requiring new, disruptive power transmission construction in the neighborhood.
The takeaway
The project serves as a test case for whether urban centers can host significant computing loads without expanding existing power footprints. Observers should track the implementation of the developer's promised safety and cybersecurity measures as the facility begins construction.
Further reading
For broader trends in urban compute infrastructure, explore our coverage of Data Centers.
Source note: This article includes information reported by KTAR.
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Should data centers be required to use existing grid power rather than building their own plants?
