PROJECT BACCARA

Recently, residents across the Valley have begun pushing back on city approvals of new data center projects, often citing concerns about excessive power and water usage. While these concerns are understandable, they are not always grounded in the full picture. Many modern data centers are shifting toward innovative solutions, including the use of reclaimed or non-potable water for cooling and on-site or dedicated power generation that reduces strain on the existing electric grid. Even in cases where data centers rely on utility power, they are frequently subject to strict agreements that require them to fund necessary infrastructure upgrades. Unfortunately, misinformation has contributed to a negative perception, overlooking the evolving technologies and regulatory safeguards designed to ensure these facilities operate efficiently and responsibly without burdening local communities.

As data centers rapidly expand across the country, they have become one of the most discussed topics among energy regulators, utilities, and policymakers. The growth of artificial intelligence and cloud computing means the United States is in a global race for technological leadership—and data centers are at the heart of that effort. Arizona, with its strategic location and infrastructure, is no exception.

Utilities such as Arizona Public Service have already committed to serving thousands of megawatts of new data center load, with even more potential projects under discussion. While this growth is inevitable, it has raised understandable concerns among residential customers who worry that large energy users could drive up electricity rates or strain the grid.

The key to addressing these concerns lies in a simple but critical principle: growth must pay for growth. When tariffs and energy supply agreements are properly structured, data centers can be required to cover the full cost of the generation and grid upgrades they need—even if projected demand fails to materialize. Regulators and utilities are keenly aware of the risks of cost-shifting and are actively working to prevent residential customers from subsidizing large industrial users.

In fact, when done correctly, data centers can reduce upward pressure on rates. Electric utilities have significant fixed costs, such as power plants, substations, and transmission lines. Adding large, high-load customers spreads those fixed costs across more usage, lowering the average cost per customer. Data centers can also improve grid efficiency by flattening load profiles, allowing utilities to operate their systems more optimally and reduce overall costs.

Beyond rate impacts, data centers offer substantial economic benefits to local communities. In other parts of the country, data center development has significantly reduced residential tax burdens by expanding the tax base. Here in Arizona, recently approved projects are bringing billions in private investment, hundreds of millions in tax revenues for the state and counties, thousands of construction jobs, and long-term, well-paying technical positions. Many developers are also committing additional funds for workforce development, STEM education, and local infrastructure.

The data center conversation should focus on facts, not fear. With sound regulatory oversight and firm adherence to the principle that growth pays for growth, data centers can strengthen Arizona’s electric grid, help keep rates affordable, and serve as powerful engines of local economic development—while advancing national priorities in technology and innovation.

Much of this information was from reading the writings of Nick Myers, Chairman, Arizona Corporation Commission

Takanock LLC is proposing to build a new data center powered by natural gas generators known as Project Baccara in the West Valley on a county island bordered by Glendale, Surprise, and Luke Air Force Base. Because of its location near Luke, the project will require a military compatibility study as well as approval from the Arizona Corporation Commission. I attended part of the recent ACC  Line Site Committee hearing, I listened carefully to the sworn testimony presented. Every individual who testified was under oath, and a court reporter documented the proceedings, creating a formal transcript for the public record. The resumes of those presenting before the Commission were exceptionally impressive, beginning with Takanock founder Ken Davies. Davies was the Director of renewable Energy with Microsoft when Microsoft built the first and currently only data center with gas generator in the US. Craig McKesson Chief Commercial Officer for Takanock and previously with T5 Data Centers and Jones Lang LaSalle. And several other

Many citizens who oppose this project continue to ask, why not build this further in the desert. One of the most important takeaways from the hearing was why this specific location was chosen. The property is already zoned heavy industrial, and significant infrastructure is already in place. Massive fiber lines exist due to the site’s proximity to Microsoft, along with existing high-transmission power lines and the close location to Electrical District 7. In addition, the project cannot move forward without explicit approval from Maricopa County which will reflect a compatibility determination from Luke Air Force base. If Project Baccara is not built on this site, it is likely that another similar heavy-industrial project will eventually be proposed based on the zoning alone.

During the hearing, it was explained that all power generated on site will be sold into the wholesale market, after which the project will purchase electricity back from ED7. With the West Valley growing at such a rapid pace, the existing infrastructure alone will not be sufficient for APS to meet the region’s increasing energy demands. This project will add much-needed power to the system at no cost to the ratepayer. In fact, most rate increases approved for APS are driven by the need to build additional infrastructure to keep up with growing electricity demand, which this project helps to address.

For context, data centers exist throughout the country, but only one currently operates with an attached natural gas power plant—located in Cheyenne, Wyoming—and Ken Davies was part of the team that built it during his time at Microsoft. Many who oppose data centers often cite concerns about power consumption and water usage; however, Takanock and Project Baccara have directly addressed these issues through having the natural gas generator on site and using a closed loop water system.

Data centers are not only coming to Phoenix. Nationally, Northern Virginia leads the country with the most megawatts (MW) with 4,934 MW of data center capacity. Phoenix currently has 804 MW, with 1,004 MW under construction and an additional 3,684 MW planned. West Virginia has 1,071 MW under construction and 5,446 MW planned, while the Dallas–Fort Worth region has capacity figures similar to Phoenix. Other major regions at the forefront of data center development include Atlanta, Chicago, Northern California, and the Pacific Northwest.

Engineering details were also discussed. The turbines for Project Baccara have been purchased from Siemens, with delivery expected in December 2027. There will be 18 turbines total. The proposed construction start date is the third or fourth quarter of 2026. The data center itself will be cooled using air conditioning, while the turbines will require water though only on the hottest days of the year. Takanock is currently in discussions with existing industries in the area about potentially using recycled water to cool the turbines, which would further reduce the project’s overall water impact.

Public concerns about this project continue to focus on noise, water use, air quality, property values, and general safety. These concerns are understandable, and they deserve to be taken seriously. However, it is also important to acknowledge that this land is already zoned for heavy industrial use. This raises an important question: Will those who oppose Project Baccara accept any heavy-industrial project at this location? With the rapid growth occurring in the West Valley, additional energy generation will be required regardless. If this project does not move forward, it is very likely that another energy project will eventually be proposed for the same site.

Finally, it is worth noting that the Arizona Technology Council has come out strongly in support of Project Baccara. Their representative spoke publicly at the hearing about the growing data and energy demands in the West Valley and the importance of projects like this to support our modern, technology-dependent society.

At this time, after attending the hearing, reviewing the facts, and listening to sworn expert testimony, I continue to support Project Baccara. Data centers are a critical part of our economy, our infrastructure, and our daily lives. With strict state and county oversight of air quality, noise, and environmental standards, and with thoughtful planning and transparency, this project can move forward responsibly while helping meet the growing needs of the West Valley.

MY VISIT TO A DATA CENTER, THE BACCARA SITE, AND A GAS GENERATING FACILITIY

On December 3rd at approximately 10:30 a.m., I took a field trip to the existing data center located on Citrus Road in Goodyear to see firsthand what a fully operating facility is like in a real-world setting. Directly across the street, cattle were grazing and lying peacefully in the field, enjoying the cool morning breeze. It was a striking contrast—modern high-tech infrastructure on one side of the road and quiet agricultural life on the other.

When I stepped out of my car, I intentionally paused to listen closely for any sound coming from inside the fenced perimeter of the data center. I heard nothing from the facility itself—no constant hum, no mechanical noise, no cooling system sounds. The only noise present was regular ambient sound and the cows occasionally mooing across the road. I then drove around to the opposite side of the building. There, I could clearly hear construction equipment operating on the neighboring property, but again, there was no audible noise coming from the data center itself.

After my admittedly amateur sound test at the operating facility, I drove to the proposed site for Project Baccara. It must have been a busy training day for Luke Air Force Base, because jets were flying overhead performing repeated touch-and-go exercises every few minutes. The proposed project site is bordered by Peoria Avenue, 143rd Avenue, Olive Avenue, and Bullard Avenue. The surrounding area is already heavily industrial, with countless warehouses, rail lines running along Olive, and frequent freight activity. While there are still a few remaining farms, scattered homes outside of subdivisions, and citrus sales in the area, the overall character of this location is clearly shifting toward industrial use.

Just north of the property are the Copper Canyon Ranch and Rancho Gabriela subdivisions. These neighborhoods sit across the street and are enclosed behind a wall, separated from the industrial corridor. This is a growing industrial zone, and the presence of numerous diesel trucks servicing the surrounding warehouses is already a daily reality for the area.

I truly understand and respect the concerns being raised by nearby residents—concerns about noise, safety, air quality, and quality of life are always valid and deserve to be heard. However, standing on this site and observing the existing land use and surrounding development, it is also clear that this area has already transitioned into an industrial corridor. In many ways, the horse has already left the barn.

My visit to the Goodyear data center reinforced an important point: a properly designed and operated data center can exist quietly within a broader industrial area without creating the kind of continuous noise many fear. Real-world observation matters, and what I personally experienced was a facility that blended into its environment far more quietly than expected.

My field trip would not be complete without touring a gas generation station. So I made a point to visit an operating natural gas generation facility to better understand the real-world impacts. 

I went to the Agua Fria Generating Station on Northern Avenue, which houses five combustion turbine generators with a total capacity of 722 megawatts. I walked along two sides of the property and listened carefully for operational noise. The only sound I heard from within the facility was a forklift moving pallets. Otherwise, there was only normal ambient noise. In fact, the traffic on the street was noticeably louder than anything coming from the plant itself. There were also residential homes located directly across the street from the facility, illustrating how closely this type of infrastructure can safely and quietly coexist with nearby neighborhoods.

In conclusion, the Takanock Project Baccara represents a carefully planned and forward-looking investment in the future of the West Valley. As our region continues to grow at an unprecedented pace and our reliance on technology only increases, the need for reliable, locally generated power is undeniable. Based on what I have seen firsthand and learned through sworn testimony and site visits, this project is designed to responsibly meet that demand while operating within strict regulatory oversight. Project Baccara will help ensure that the West Valley can continue to support innovation, growth, and the ever-evolving technologies that shape our daily lives.

On December 4, 2025 the Line Siting Committee who recommends to the Arizona Corporation Commission voted 8 - 1 to approve Takanock Project Baccara.  The Arizona COrporation COmmission will vote in January or Frbruary of 2026. The project must finish the approval process with Luke Air Force Base for their final determination.  Then the project will move to the P&Z Committee and finally the Maricopa County Board of Supervisors probably early next year.  

Project Baccara: A Proposed Data Center - A Transparent Process and a Community Conversation Worth having

Project Baccara has sparked a lot of discussion in the West Valley, and rightly so. Any project of this scale deserves close public scrutiny. Over the past several months, many residents have raised questions about water, noise, power generation, environmental impact, and the proximity to nearby homes. Those concerns are valid, and they should be addressed openly.

To their credit, Takanock, the developer behind Project Baccara, has been extremely transparent throughout this process. They have hosted multiple open house events, offered detailed Zoom presentations, and responded quickly to emailed questions. Whether one supports the project or not, the level of accessibility and information-sharing they have provided is noteworthy.

Initial Feedback from Regulators and Local Cities

When I first heard about Project Baccara, I reached out to the Arizona Corporation Commission (ACC). Their response was twofold:

1. A project like this is needed, and
2. This location is appropriate for such a facility.

Because the site sits within a county island, I also contacted council members from several nearby cities. Each city indicated they had questions and wanted more details, but importantly, none expressed opposition to the project at this time.

After Four Meetings, Here are My Takeaways

I have personally attended two in-person open houses and two Zoom briefings. My primary concerns from the beginning were straightforward: water, noise, and power. These are finite, precious resources, and we should never take them for granted. I also strongly believe in property rights — both the rights of the project owner AND the rights of the neighbors who want to continue living peacefully.

Here’s what I learned:

Water Use: A Closed-Loop System With Reclaimed Water

Project Baccara plans to use a closed-loop cooling system, meaning water is recirculated rather than constantly consumed. Even more importantly, Takanock is working with a neighboring industrial facility discussing utilizing reclaimed water from them rather than drawing from local groundwater.

The total projected water use is approximately 100 acre-feet per year — significantly lower than many industrial users in Maricopa County. Protecting water resources is one of my top priorities, and the presentation of these details made a meaningful difference in evaluating the project.

Power Generation: A Local Benefit

The project includes a natural gas power plant designed to supplement the grid during high demand periods. Electricity generated onsite would be sold back to the APS which would help Electrical District 7, providing a local, flexible backup power source.

With our exploding population and massive reliance on technology, having additional grid stability is a public benefit, not a burden.

Noise Levels: Quieter than Current Ambient Sound

One of the most surprising facts presented was that the noise generated by the facility will be lower than or equivalent to current ambient noise levels in the area.

A comparable facility, the SRP Santan Generating Station, has virtually no noise complaints from nearby residents. For a project that includes data halls and a gas turbine, this was encouraging information.

Air Quality: Within Maricopa County Standards

Air quality is a legitimate concern, especially for projects involving combustion. According to Takanock’s environmental assessment, emissions from the gas plant will remain well within Maricopa County Air Quality Department standards, with ongoing monitoring built into the project to ensure compliance.

Proximity to homes: Respecting Neighbor Rights

The project area is relatively isolated:

• 6 homes within 0.5 miles
• 110 homes within 1 mile
• 630 homes within 1.5 miles

Every one of these households has the right to clean air, quiet living, and stable water access. Those rights must be protected. The data presented so far suggests that the project will not compromise those expectations, but continuing oversight is essential.

The Role of Data Centers in Modern Life

Whether we like it or not, we live in a digital world. Every time we:

• Use GPS
• Access the internet
• Stream content
• Use cloud storage
• Interact with AI

…a data center makes it possible.

They are already around us — and most people never even notice they are there. If we expect fast, reliable technology, data infrastructure must grow with us.

My Position Today

At this point, based on the information provided and after personally attending multiple meetings, I am in favor of Project Baccara.

That said, I respect that some residents disagree. What concerns me is that a lot of misinformation is spreading online, and people are forming opinions without attending the open houses or asking direct questions.

If you have concerns or want clarification, I encourage you to email Takanock directly. They have consistently replied quickly and thoroughly. There is no need to rely on rumors when accurate information is readily available.

As Arizona continues to grow, one of the fastest-rising industries in Maricopa County is data infrastructure — specifically, data centers. These large, often windowless facilities have become essential to powering our daily lives, even though they’re rarely noticed by most residents. Yet with new projects proposed across the West Valley, from Surprise to Buckeye, many community members are asking: Do we really need them? And what impact do they have on our neighborhoods?

In the unincorporated “county island” immediately south of Surprise city limits, a proposal for Project Baccara envisions a large industrial-scale facility — two data-center buildings plus roughly 700 MW of on-site natural-gas generation — located on land zoned IND-3 with an IUPD (Industrial Unit Plan Development) overlay. Although the project sits outside the Surprise municipal boundary, its proximity means residents within Surprise and surrounding neighborhoods are voicing concerns over impacts like noise, groundwater use, traffic, and the compatibility of a massive horsepower-generation site adjacent to more traditional commercial or residential areas.

Why Data Centers Are Needed

1. Every photo uploaded, video streamed, or credit-card transaction processed online passes through a data center. As more businesses move to cloud-based systems, demand for reliable data infrastructure has skyrocketed. Arizona’s central location, dry climate, and access to stable power grids make it a prime site for these critical facilities.
2. Supporting Local Jobs and Tax Revenue
3. While data centers don’t employ thousands of people like a factory might, they create high-paying technical and maintenance jobs and generate millions in property-tax revenue. Those funds support local schools, fire districts, and infrastructure improvements — a significant benefit for suburban and rural areas alike.
4. Attracting Future Investment
5. Tech companies prefer regions with strong digital infrastructure. Building data centers today positions Maricopa County to attract future industries like artificial intelligence, logistics automation, and advanced manufacturing — all of which rely on fast, secure data transfer.

Common Myths About Data Centers

Myth: "They Waste Huge Amounts of Water."

Fact: While early data center designs relied heavily on water-cooling, modern facilities are far more efficient. Many now use closed-loop systems or air-cooling, dramatically reducing consumption. Some data centers use less water annually than a typical golf course or large hotel.

Myth: "They Don't Create Local Benefits."

Fact: Data centers provide significant short-term and long-term economic benefits. Construction employs hundreds of skilled workers, and the required utility upgrades and infrastructure improvements often enhance service reliability for surrounding neighborhoods and local businesses.

Myth: "They Increase Noise and Traffic."

Fact: Data centers are quiet, low-traffic operations. They run 24/7 but do not generate heavy truck traffic or large numbers of visitors. Backup generators are tested only occasionally and are typically housed in sound-reduction enclosures that meet strict local noise codes.

Myth: “They Lower They Lower Property Values."

Fact: There is no strong evidence that data centers negatively impact property values. In many communities, well-designed, landscaped data campuses have helped stabilize or even increase nearby property values due to improved infrastructure and the absence of more disruptive industrial uses.

Balancing Growth and Responsibility

Maricopa County’s leadership has a tough task: balancing the need for growth with community preservation. Thoughtful zoning, public transparency, and environmental safeguards are essential. When done right, data centers can fit within that balance — powering our economy without compromising our quality of life.

As our population and digital dependence expand, these facilities are no longer optional — they are the unseen engines that keep our modern world running.