Arizona wants to be a place where businesses build, manufacturers invest, and families put down roots. However, every new factory, data center, and household adds to the state’s electricity needs — and the state is projecting a 40% increase in peak electricity demand over the next 15 years. Whoever is governor after the November election will inherit this challenge, and while the politics may change, the underlying math won’t. Arizona needs a lot more power, and it needs to stay affordable. That is already getting a lot harder, with utilities like APS proposing double-digit rate hikes for residential customers. That’s the equivalent of residential bills spiking 16%, or about $20 a month—real money for families already stretched thin by Arizona summers.

Arizona doesn’t need to build everything, everywhere, all at once. The state needs to be smart about where and how it invests, so new infrastructure delivers real value for families and businesses. This is Arizona’s speed-to-power test, and it comes down to three things the Governor must get right: 1) get more power from the existing grid now, 2) build faster and better, and 3) keep Arizona open for business with prudent guardrails.

Get More Power from the Grid We Have Now

New transmission lines can take decades or more to permit and build. Arizona doesn’t have that kind of time, so the fastest path to more power is getting more out of what’s already standing. 

Reconductoring existing transmission lines — replacing old wires with modern, higher-capacity ones on the same towers—can double a line’s existing carrying capacity. Grid-enhancing technologies can squeeze more from the wires we have, and Arizona can unlock real capacity in months, not years. Meanwhile, the batteries, smart thermostats, electric vehicles, and rooftop solar already sitting in homes and garages across the state can feed power back to the grid at exactly the moments demand peaks, typically a handful of hot summer afternoons each year that put the most strain on the electricity grid. The state should expand access to these tools and build utility programs that reward customers for participating. Done right, they save households money and reduce the need for costly new infrastructure. 

Build Faster and Better 

The state will also need to build significant new generation, and quickly. Geography works in our favor with Arizona’s abundance of natural resources like solar, wind, and geothermal, which are increasingly cheaper to build than new gas plants and can come online in a fraction of the time. 

But cheap and fast power doesn’t matter if it’s stuck in a permitting queue. Siting, permitting, and interconnection processes must also be streamlined so businesses can continue investing and communities can get the power they need. The Governor should set a clear speed-to-power agenda for new energy infrastructure and improve transparency by giving projects predictable timelines, making Arizona a state where resources can move from planning to construction without unnecessary delay.

Keep Arizona Open for Business 

Arizona is one of the country’s leading states for data center development, with Phoenix ranking as the fourth-largest data center capital. Growth at this scale requires thoughtful planning and clear safeguards. 

The state should create a clear set of rules for all large energy users, including data centers, that gives major employers a predictable path to power, places guardrails around how costs for serving new growth are allocated, and protects Arizona’s affordability advantage so the state can continue attracting investment without shifting costs onto families and small businesses.

Get the Math Right 

The Governor will need to match Arizona’s appetite for growth with an energy strategy that’s practical, affordable, and built to deliver. That means using every cost-effective tool available today while building the new infrastructure the state will need tomorrow. Striking that balance will keep Arizona competitive, open for business, and nimble for what comes next.

Michael Barrio is the Arizona lead for Advanced Energy United.