APS Plans Desert Sun Power Plant Near Gila Bend

Arizona Public Service (APS) is preparing one of its biggest undertakings yet, a new 2,000-megawatt natural gas facility called the Desert Sun Power Plant. The site sits west of Gila Bend, just outside Greater Phoenix, and construction will unfold in several stages through 2030. The project marks a major shift in how Arizona’s top utility handles a fast-rising power load across the state.

Quick Points

• 2,000-MW natural gas plant planned near Gila Bend

• First phase expected to serve customers by 2030

• Targets soaring energy use from data centers & factories

• APS rolling out a new “growth pays for growth” model

• Hundreds of jobs expected during construction

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Why APS Is Building Desert Sun

APS says its large customers, including advanced manufacturers and data centers, are driving electricity demand far beyond previous records. Requests from these users now top 19,000 megawatts, more than twice APS’s 2025 peak. The Desert Sun plant is meant to meet that surge while backing up solar and other renewables when output dips.

• Handles rapid industrial power growth

• Adds dependable backup generation

• Uses new customer funding model

• Tied to future renewable integration

• Part of APS’s long-term expansion plan

This approach flips the usual cost structure. Instead of shifting big-user costs to homes and small firms, APS’s new subscription plan makes major customers directly fund the infrastructure that serves them.

Energy Supply Backbone

The plant will run on natural gas from the Transwestern Pipeline’s Desert Southwest expansion, a project linking Texas to Arizona by 2029. That line will deliver steady fuel to Desert Sun while reinforcing supply statewide.

• Connects to Transwestern expansion

• Supports Arizona’s fast-growing grid

• Boosts reliability during renewables’ off-hours

• Strengthens statewide transmission backbone

By anchoring itself to this pipeline, APS ensures a long-term gas feed while the utility continues blending more renewables into its mix.

Economic & Workforce Impact

Beyond energy, the project is set to bring hundreds of construction jobs and about 100 full-time positions once running. The company hasn’t shared final costs or an exact site map yet, and contractors will bid competitively for the build.

• Hundreds of short-term jobs

• Roughly 100 permanent roles

• Contractor chosen through open bidding

• Major investment still undisclosed

For nearby towns, that means a temporary influx of workers and new spending. For APS, it’s another asset supporting The Valley’s industrial momentum.

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APS Expansion & Future Plans

APS already serves 1.4 million customers in 11 counties and keeps adding more. In 2024 alone, it added over 32,000 new residential meters. To keep up, the utility plans another 7,300 megawatts of generation by 2028, including this Gila Bend project.

• 32,000 new meters in 2024

• 7,300-MW system growth by 2028

• $25M substation land buy in north Phoenix

• Supports Halo Vista & TSMC sites

The company’s steady buildout mirrors Arizona’s own pace, more homes, more factories, more data centers. Each needs energy, and APS is racing to stay ahead.

Financial Context & Statewide Significance

APS is seeking approval for a $579.5 million rate increase, equal to roughly a 14.5% hike for residential customers. It’s part of a broader corporate push under parent firm Pinnacle West Capital Corp. (NYSE: PNW). At the same time, APS continues to lead in local giving, with nearly $24 million donated to Arizona charities in 2024.

• Pending $579.5M rate proposal

• 14.5% average residential hike

• Backed by Pinnacle West Capital

• $24M in 2024 community donations

Once online, the Desert Sun Power Plant will anchor Arizona’s energy future, keeping the grid stable, prices fair, and business growth in The Valley on track.

Also Read: APS Powers Up Halo Vista With Substation Plans Near TSMC