From Arizona AI · Nov 3, 2026 · Semiconductors

APS signs 25-year electricity agreement with TSMC Arizona for up to 1.88 gigawatts

Arizona Public Service (APS), the Phoenix-based electric utility owned by Pinnacle West Capital, has signed a 25-year agreement to supply electricity to Taiwan Semiconductor Manufacturing Company (TSMC), the chipmaker expanding its manufacturing operations in north Phoenix.

According to a November 3 regulatory filing, the agreement was signed October 16 and provides for electricity demand to gradually increase to approximately 1.88 gigawatts as TSMC's semiconductor manufacturing and advanced packaging facilities expand.

That figure represents planned future demand, not electricity currently being consumed.

APS says the contract includes upfront payments, financial guarantees and other safeguards designed to prevent the costs of serving TSMC from being shifted to existing utility customers.

Those protections are described by APS and have not yet been independently approved by regulators.

The agreement still requires approval from the Arizona Corporation Commission, which regulates the state's utilities. APS expects to submit it for review in 2026.

The Commission's decision will determine whether the proposed arrangement can proceed under its regulatory terms.