Mayor Gallego Confirmed Downtown Data Center Project
A new 24-megawatt data center in Phoenix will utilize the existing power grid near Seventh Avenue and Grant Street.
Updated on Oct. 1, 2026 in Data Centers
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Mayor Kate Gallego announced that a planned downtown Phoenix data center will operate using current power infrastructure. The facility is set to be located near Seventh Avenue and Grant Street.
Why it matters
The project avoids the need for new transmission lines or dedicated power plants by connecting directly to the local grid. This approach addresses infrastructure concerns by leveraging capacity already present at a nearby Arizona Public Service substation.
The facility will draw its electricity from an adjacent Arizona Public Service substation. The project is designed with a total power capacity of 24 megawatts.
The players
Kate Gallego
She serves as the Mayor of Phoenix and has been active in facilitating local development projects.
Arizona Public Service
It is the primary utility provider responsible for the electrical infrastructure in the Phoenix metropolitan area.
The details
The developer has committed to specific safety measures, including enhanced fire protection and cybersecurity protocols. Additionally, the team worked with local residents to establish traffic mitigation strategies for the area.
Timeline
Mayor Gallego discussed the project during a radio appearance on Thursday.
The Tech Race
Data center developers are increasingly prioritizing sites that can tap into existing utility infrastructure to accelerate deployment timelines. This facility follows the Phoenix General Plan energy infrastructure guidelines by integrating new industrial loads into existing utility nodes.
Local residents can expect traffic mitigation measures to be in place as the developer coordinates with the neighborhood. The facility utilizes existing grid infrastructure, potentially minimizing local utility disruptions compared to projects requiring new high-voltage transmission lines.
The takeaway
Using established energy nodes allows for faster project completion while minimizing the environmental footprint of new tech infrastructure. Residents in areas targeted for similar industrial growth should monitor municipal updates regarding traffic and safety protocols.
Further reading
Learn more about local infrastructure developments in the Data Centers section.
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?
