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Arizona is becoming a hotbed for datacenters

September 23, 2025•7 min read

As rates climb 8%... then 8%... now 14% and beyond

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Living in the beautiful White Mountains of Arizona—places like Show Low and Pinetop-Lakeside—means enjoying fresh air, stunning views, and a close-knit community. But for many families, the rising cost of electricity is casting a shadow over that peaceful life. Arizona Public Service (APS) has proposed a significant rate hike for 2026, and with recent updates showing strong opposition and ongoing hearings, it's clear this could hit homeowners hard. As of September 2025, Arizona Attorney General Kris Mayes has stepped in to oppose the plan, calling it "outrageous" and vowing to fight for lower rates.

Public hearings are underway, giving residents a chance to voice concerns, but the proposal remains a looming threat.

Add to that the explosion of data centers across the state, driven by AI demands, and it's no wonder energy costs are inflating. But there's a smart way to prepare: switching to solar. With prebuilt DIY solar kits from White Mountains Solar, you can lower your bills, safeguard against blackouts, and gain energy independence—without subsidizing big tech's power hunger.

The Latest on the APS Rate Hike Proposal

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APS filed its rate application in June 2025, seeking a net 14% increase for residential customers by mid-2026. This comes after back-to-back 8% hikes in 2023 and 2024, driven by grid upgrades and inflation.

The new proposal blames rising operational costs and massive investments—over $2 billion annually—in infrastructure to keep the lights on amid record demand.

For a typical White Mountains home using 1,000 kWh monthly, this could mean an extra $20 or more on your bill, compounding the pain from previous increases. Recent developments show pushback is building. As of mid-September 2025, AG Mayes was granted intervention in the case, allowing her to challenge APS directly through witnesses and evidence.

She argues Arizonans are already squeezed by high bills, and this hike—potentially the fourth in a decade—goes too far.

Public comment meetings are scheduled through May 2026, with the Arizona Corporation Commission (ACC) set to decide.

Meanwhile, APS has shifted its clean energy goals from commitments to "aspirational," raising eyebrows about its long-term sustainability focus.

And for solar owners, there's more bad news: APS cut solar buyback rates by another 10% on September 1, 2025, making self-reliance even more appealing.

To see the pattern, here's a quick table of APS residential rate increases:

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Data Centers and Rising Energy Demands: Why Your Bill is Paying for AI

Arizona is becoming a hotspot for data centers, thanks to AI and tech giants expanding rapidly. As of September 2025, these facilities are creating buzz in the Valley but raising alarms over infrastructure strain.

APS reports that data centers could nearly triple energy demand, with requests for an additional 17,000 megawatts—enough to power millions of homes.

To cope, APS and Salt River Project secured natural gas capacity from a pipeline expansion in August 2025, specifically to support these energy-hungry operations.

Critics warn this could lead to more methane-burning gas plants, hiking greenhouse gases and costs passed to residential users.

The ACC started studying data centers' grid impact back in April 2025, but the growth continues unabated.

Social media is abuzz with concerns, like one post noting, "Data centers are raising your electric price," directly linking them to the 14% hike proposal.

For White Mountains families, this means your bills are indirectly funding big AI data centers in Phoenix, even as local blackouts from storms or peak demand become more common

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Infrastructure Challenges: New Builds Can't Keep Up

APS is investing in new infrastructure, but it's a race against time. Their 2025-2034 Ten-Year Transmission Plan includes 32 miles of new 500kV lines and other upgrades to handle growth.

A key project is the Redhawk Power Plant expansion, adding eight natural gas units for up to 397 MW by 2028—aimed at peak-hour reliability but reliant on fossil fuels.

However, national transformer shortages are a big hurdle: Wait times for high-voltage transformers hit three years as of mid-2025, with heavy reliance on imports.

New facilities like VanTran's in Texas are ramping up, but vulnerabilities in existing substations (over 79,000 nationwide) could lead to delays or outages.

This means even with expansions, energy inflation from data centers and supply chain issues will keep pushing costs up. Going solar lets you sidestep this chaos—generating your own power shields you from rate hikes and grid failures.

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Why Solar is Your Best Defense Against Blackouts and Rising Costs

Solar isn't just eco-friendly; it's a practical shield for White Mountains families. With frequent monsoon storms and winter outages, having your own power source means no more spoiled food in the fridge or cold nights without heat. Solar systems store energy in batteries, keeping essentials like lights, mini-splits, and well pumps running during blackouts. Plus, by reducing reliance on APS, you avoid subsidizing AI data centers' massive demands—your bills drop as you produce clean, free energy from Arizona's abundant sun. The key? Easy-to-install DIY kits that save thousands on professional setup.

At White Mountains Solar, our kits are prebuilt, preprogrammed, and prewired—ready to connect to batteries and solar panels right out of the box. No complicated assembly; just plug in and go.

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Spotlight on the Lux 6,000 Watt Fully Assembled Solar Kit

Take our Lux 6,000 Watt Fully Assembled Solar Kit as a prime example—ideal for small homes in the White Mountains. This system delivers reliable 120/240V power with a robust 6,000W inverter featuring two 80 Amp MPPT controllers and a generator input for backup. It includes 14.3 kWh of lithium LiFePO4 battery storage—long-lasting with a 10-year warranty—ensuring you have power when the grid falters. The kit comes with 16 high-efficiency 380W Talesun mono solar panels (totaling 6,080W), backed by a 25-year warranty for decades of performance. Everything's included: 200ft of #10 AWG panel wire with MC4 connectors, a 100 Amp full AC panel with breakers and outlet, plus an 8ft generator cord. It's fully assembled, tested, and safe, complete with a wiring diagram for simple setup. Benefits abound: Power your fridge, freezer, mini-splits, and more without interruption. Scalability is a standout—parallel up to 16 units for expansion as your needs grow.

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Monitor it all via the free Lux Power Tek app from anywhere, giving you peace of mind. This hassle-free design saves time and money, letting you focus on family instead of utility woes. Upgrade options make it versatile: add extra batteries for increased storage or switch to bifacial panels for improved efficiency in our variable weather conditions. Whether you're in a cozy cabin or a family home, this kit provides energy independence, slashes bills, and prepares you for whatever 2026 brings.

Contact White Mountains Solar at 928-251-0114 or visit wmsolaraz.com today. Let's power your home smarter—before the next bill arrives.

Take Control Today

With APS's proposed 2026 rate increases, data center expansions, and infrastructure strains, now's the time to act. Solar empowers White Mountains, AZ, homeowners to beat energy inflation, avoid AI-driven costs, and stay powered during blackouts. Explore our off-grid solar solutions at https://www.wmsolaraz.com/off-grid-solar/—our prebuilt kits make it easy.