APS Unveils 2,000-MW Desert Sun Natural Gas Project in Arizona
Arizona Public Service plans to build the 2,000-MW Desert Sun natural gas plant near Gila Bend to meet growing energy demand from homes, businesses, and data centers while protecting existing customers through a subscription-based funding model.
(P&GJ) — Arizona Public Service (APS) announced plans to build a natural gas-fired power plant west of Gila Bend, Arizona, capable of generating up to 2,000 megawatts (MW) to support the state’s fast-growing power demand.
The proposed Desert Sun Power Plant would be built in two phases. The first phase would serve existing customers through APS’s competitive procurement process, while the second phase would expand capacity for new, extra-large energy users such as data centers through a subscription-based funding model.
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“Arizona’s energy needs are growing faster than at any time in our history,” said Jacob Tetlow, APS Executive Vice President and Chief Operating Officer. “Additional natural gas generation is essential to support our existing customers and to begin addressing unprecedented requests from extra-large energy users, such as data centers. By pursuing a ‘growth pays for growth’ strategy, this project protects customers while supporting data centers needed for the U.S. to compete globally.”
Under the model, extra-large users would pay for the additional capacity through long-term contracts, ensuring costs are not passed to existing residential or small-business customers. The approach, APS said, would accelerate infrastructure investment while maintaining affordability and reliability for all ratepayers.
Phase 1 of the project is expected to begin serving customers by late 2030, with Phase 2’s schedule determined in coordination with participating subscribers. The plant will feature advanced emissions controls and high-efficiency technology to comply with federal and local air quality standards.
APS plans to supply natural gas to the Desert Sun facility via the proposed Transwestern Pipeline Desert Southwest Expansion and connect the plant to the power grid through new transmission infrastructure.
State leaders praised the project for its potential economic and reliability benefits. “Natural gas generation is a critical component of a reliable and affordable grid,” said Representative Gail Griffin, Chairwoman of the Arizona House Natural Resources, Energy and Water Committee. “I applaud APS for its investment in Desert Sun Power Plant which will provide firm, dispatchable energy to support quality service for existing and future customers in Arizona.”
APS said construction of the Desert Sun Power Plant would create hundreds of construction jobs and generate millions in new tax revenue for local and state governments.