Arizona AIFrom Arizona AI · Nov 3, 2026
SRP Board Discusses Possible Pause on New Data Center Power Connections
November 3, 2026 | Energy & Infrastructure | Arizona
Salt River Project (SRP), the Phoenix-area electricity and water utility, discussed whether it has the legal authority to temporarily suspend new power connections for data centers during its November 2, 2026, board meeting.
The discussion focused on SRP's legal obligation to provide electricity to qualifying customers, projected growth in electricity demand, and the potential financial impact of new data center infrastructure on existing customers.
The utility's official meeting agenda identified the matter as an informational presentation on SRP's obligation to serve customers and its authority to impose a data center moratorium.
Data Centers Account for a Substantial Share of Estimated Growth
During the meeting, board member Krista O'Brien cited figures from earlier presentations indicating that SRP was planning for approximately 4,700 megawatts (MW) of growth by 2035, with an estimated 3,000 MW associated with data centers.
SRP's chief legal executive, Michael O'Connor, described those estimates as plausible. Another board member said the figures were consistent with information previously presented to SRP's Power Committee.
The figures discussed were estimates of future growth, not confirmed electricity consumption or finalized commitments from data center operators.
Legal Limits on a Moratorium
O'Connor told board members that a moratorium on new data center connections would likely conflict with SRP's legal obligation to serve eligible customers within its designated service territory.
He explained that SRP's exclusive right to serve customers in its territory comes with an obligation to provide service to customers who meet the applicable requirements.
O'Connor also acknowledged that safety-related exceptions may apply under certain circumstances.
His comments represented SRP's legal assessment, not a court ruling on whether a particular moratorium would be lawful.
Questions About Infrastructure Costs
Board members also discussed whether the expansion of electrical infrastructure to serve data centers could increase costs for other customers.
Board member Ken Clark questioned whether constructing additional power plants and related facilities specifically to meet new demand could shift costs to existing customer groups.
SRP's director of financial strategy, John Tucker, described financial requirements intended to protect other customers from those costs.
Under SRP's large-customer policies, qualifying new customers must pay upfront for certain infrastructure needed to serve them. Additional contractual requirements include financial security, long-term commitments and minimum demand charges.
SRP's published policies specify that qualifying large customers are subject to a minimum demand charge based on at least 80% of their forecasted demand, even if actual usage is lower.
Tucker said SRP has issued nine-figure infrastructure bills to some data center customers. He also stated that the utility's financial arrangements result in data centers paying more than the cost of serving them.
Those statements reflect SRP management's assessment of its pricing and financial protections.
No Moratorium Adopted
The November 2 discussion did not result in the adoption of a moratorium on new data center electricity connections.
SRP continues to operate under its existing service obligations and large-customer requirements.