Challenges of Energy Demand for Data Centers in the Desert: Insights from ASU’s MRED Real Estate Council

Mark Stapp (moderator) and Panel

Throughly enjoyed the ASU Master in Real Estate Development (MRED) Real Estate Council discussion last week about energy use in the desert!

After seeing several big data centers approved in Mesa, the natural concern is about energy and water usage, so I was front and center on Thursday to learn more about this topic.

The discussion focused on the growing demand for energy and the challenges around supporting new data centers.

Main Takeaway:
There isn’t currently enough energy generation to meet the increasing demand. The primary way this shortfall is managed is through a waitlist for new data centers. Essentially, large projects must “get in line” until they are approved and supplied with the necessary energy to operate.

Some innovative solutions were also discussed, including the possibility of businesses installing small modular nuclear reactors (SMRs) at their facilities. This naturally raises an interesting question—how would you feel about having a small nuclear plant in your town? Or even multiple?

Regardless of where future energy comes from, it’s clear that demand is skyrocketing and will only continue to grow. It would be great to hear APS and SRP explore some “outside-the-box” ideas to address this challenge.

A big thank you to Mark Stapp, Wimberly Doran, and the entire MRED team for organizing this event. It was also really great to reconnect with some familiar faces from the MRED program!

And thanks to the panelists for their valuable insights:
Bill Jabjiniak – SVP, National Community Engagement, Edgecore
Steve Coon – Founder, Strategic Mission Critical
Cameron Robb – Senior Economic Development Consultant, APS

Looking forward to more discussions like this in the future!