$33 billion, 3GW data centre megaproject planned in Arizona to meet soaring infraAI demand

Article originally posted on HERE on August 7, 2025

A private developer is preparing a 3,300-acre site in Pinal County for what could become Arizona’s largest data centre complex, as surging demand for AI and cloud infrastructure drives record investment in US capacity.

One of Arizona’s largest private landowners, Vermaland, is planning a data centre project near Eloy that would be the state’s largest to date, with an estimated development cost of US$33 billion.

The facility is expected to support up to three gigawatts (GW) of power capacity across a 3,300-acre site in unincorporated Pinal County, if developed to full capacity.

Kuldip (Ken) Verma, CEO of Vermaland, confirmed that the firm has submitted a rezoning application for the site and anticipates approval by next year.

“As power costs are significantly below California and tech company demand continues to grow, we are creating the next generation of digital infrastructure,” said Verma.

The announcement also coincides with record data centre construction across North America. Commercial real estate firm CBRE reported that, as of late 2024, more than 6.35GW of capacity was under construction continent-wide. Phoenix recorded 67% inventory growth during 2024, second only to Atlanta among major markets.

The development would more than triple Arizona’s current data centre capacity. According to a year-end 2024 report from real estate firm JLL, Arizona had 804 megawatts (MW) of data centre inventory, with an additional 1,004 MW under construction.

By comparison, Northern Virginia remains the largest data centre market in the US, with 4,934 MW of inventory, 1,071 MW under construction, and 5,446 MW in planning, according to the same JLL report. The largest single data centre project globally is located in China.

The planned complex would require upgrades to the existing electrical infrastructure. Transmission lines from both Arizona Public Service (APS) and the federally operated Western Area Power Administration (WAPA) are accessible from the site. Verma said the WAPA lines would be upgraded from 115 kilovolts to 230 kilovolts to meet power delivery needs.

Power for the facility is expected to come from a mix of energy sources, according to Vermaland who intends to construct a natural gas plant to support the initial phases, with long-term plans to transition to solar power.

The site is adjacent to two existing solar projects, including one on Vermaland-owned property.

“The gas turbines would be for the initial phase, and they would stay there, but would only be for an emergency situation after the solar is connected,” Verma said.

The company has also applied to the Arizona State Land Department for access to additional land to support a new solar installation. Eventually, the site is expected to be powered predominantly by renewable sources.

Verma said the development would be designed to minimise water usage and incorporate air-cooling and other non-water-intensive technologies.

“Because water is a concern here, we don’t want to use water unless we really have to,” he said. “The technology is getting better, we can have more efficient air cooling and other types of cooling.”

According to Verma, Vermaland will offer flexible options for tenants and buyers, with opportunities to lease space or purchase individual buildings or plots.

Construction of the first phase is expected to commence within two to three years, depending on rezoning approval and infrastructure readiness.

“The market is expanding so rapidly that buildout could happen over the next 10 years,” Verma said. “There is so much demand for data centre facilities where there is power availability.”

If completed as planned, the development would be the largest of its kind in Arizona, surpassing a separate US$25 billion, 2,100-acre data centre project in Tonopah led by Arizona Land Consulting’s Anita Verma-Lallian and venture capitalist Chamath Palihapitiya, CEO of Social Capital.

Verma-Lallian is the daughter of Kuldip Verma, though the two developments are unaffiliated.