Guest ContributorArizona Public Service has unveiled plans for a major new natural-gas-fired generating facility west of Gila Bend that the state’s business community is calling a smart investment in reliability and growth.
The Desert Sun Power Plant is projected to produce up to 2,000 megawatts of capacity—enough to power more than a million homes—through a two-phase project designed to keep pace with Arizona’s booming population and the influx of energy-intensive industries such as semiconductor manufacturing and data centers. Construction is expected to begin around 2028, with the first phase online by 2030.
Arizona Chamber of Commerce & Industry President and CEO Danny Seiden said the Chamber “strongly supports” APS’ plan, calling it the kind of forward-looking solution that protects affordability and competitiveness for Arizona employers.
“Arizona’s continued population growth and surging interest from 21st-century job creators demand bold investment in our state’s energy infrastructure. APS’s Desert Sun Power Plant represents exactly the type of smart solution Arizona needs to ensure our grid remains reliable, affordable, and competitive for business,” Seiden said.
APS’ “growth pays for growth” model is one of the proposal’s most distinctive features. APS says new capacity to serve large commercial customers, particularly data centers, will be funded directly by those users through dedicated subscription agreements, insulating smaller business and residential ratepayers from the cost of expansion.
The second phase of Desert Sun will cater specifically to those large users, whose energy requests already exceed 19,000 megawatts, more than double APS’s current peak demand. By securing firm, dispatchable natural-gas generation, the utility says it can maintain grid stability as renewable resources continue to expand.
APS describes Desert Sun as essential to maintaining reliability while advancing the state’s clean-energy transition. Natural gas, company officials say, will provide “on-demand” power that complements solar and battery storage, helping avoid brownouts during extreme heat or cloud cover.
The plant’s site near Gila Bend offers ample space for transmission expansion and access to fuel via the planned Transwestern Pipeline Desert Southwest expansion. APS expects the project to generate hundreds of construction jobs and ongoing operations roles, delivering local economic benefits beyond energy supply.
For Arizona’s business community, the project underscores a larger point: energy infrastructure is now a competitive differentiator. With the state courting semiconductor fabs, EV manufacturing, and hyperscale computing operations, ensuring ample, reliable power has become central to Arizona’s economic-development strategy.
Desert Sun still requires regulatory approvals, but the early response from business and policy circles has been strongly positive. To many observers, the pairing of renewables with flexible natural-gas generation signals a pragmatic approach to keep pace with one of the nation’s fastest-growing economies.
As Seiden put it, “Arizona is proving that energy reliability and economic opportunity go hand in hand.”
Cover image courtesy APS social media
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