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Data centers are good for Arizona. Here’s why | Opinion

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Data centers are good for Arizona. Here’s why | Opinion



Data centers have gotten a bad rap lately, but here’s why we think they are actually good for Arizona. It starts with jobs.

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Arizona data centers have generated a lot of political heat in recent weeks.

At her State of the State address, Gov. Katie Hobbs questioned the social benefit of data centers and signaled an interest in reinstating a sales tax on data center equipment purchases. Neal Carter, a Republican state legislator, agrees with Hobbs. So too might Republican state legislator Leo Biasiucci.

A month ago, the Chandler City Council unanimously rejected a proposed data center despite the lobbying efforts of former U.S. Sen. Kyrsten Sinema. Hundreds of Chandler residents filled the auditorium for the vote, and 256 residents submitted online comments opposing the data center.

In Tucson, the city council unanimously rejected connecting a large data center (Project Blue) to the city’s water system. Attorney General Kris Mayes is now looking deeper into Project Blue, Tucson Electric Power and the Arizona Corporation Commission.

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Here at The Arizona Republic, the opinion section published an editorial on Jan. 20 (Arizona data centers bring hidden water risks), and the news section printed an article on Jan. 18 (Gas power plant for data center project stirs concerns in Surprise), both of which cast data centers in a less-than-flattering light.

And earlier this week, handfuls of speakers at the Corporation Commission blamed data centers for proposed APS rate hikes.

Each situation has its own complexities and justifications (and I’ll get into some of them in future weeks). Some opposition is more factually substantiated than others. But they’re all rooted in a suspicion that these large warehouses of computer servers that power the modern world are no longer great things for Arizona.

Arizona data center benefits starts with jobs

If we may be so bold, and to set the stage for future articles here at the Republic, here are a few reasons why Arizona should celebrate our position as a top 10 state for data centers:

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  • Jobs. It’s not just the people employed by data centers (many of which are high-paying jobs), but the ancillary jobs needed by data centers: contracted electricians, carpenters, pipefitters, HVAC technicians, etc. PricewaterhouseCoopers (“PwC”) found that data centers accounted for 81,000 jobs in Arizona as of 2023.
  • Taxes.  It’s the start of the state legislative season and, sadly, this is going to be one of those years in which we hear lots about the things we can’t afford.  But data centers help that equation.  According to the same PwC report, data centers generated $2.3 billion in state and local tax revenue from 2017 to 2021.  That means money for schools and roads.  Or lower state income taxes (as happened).
  • Tech center. It’s a truism that tech begets other tech. We’ve said this as we’ve celebrated the massive expansions of TSMC and Intel. It’s also true of data centers. And if proprietors of data centers – companies like Amazon and Microsoft – are happy with Arizona as a data center home, they’ll likely consider Arizona a home for other tech investments.
  • Buying unwanted power. Normal businesses use power during the day (8 am-5 pm). Homes use power during the evening (5-11 pm). But few users demand power overnight (11 pm-8 am). This means we often have to dump unsold power. But data centers need power around the clock, and they can buy that overnight power, generating revenue for Arizona utility companies that then doesn’t have to be generated from Arizona households.

Those are the benefits.

Detractors focus on power, water and land. They’re all important, but solvable.

On power, public utilities can, and should, ensure data centers pay for all the power they use–not the public. The Salt River Project (SRP) website states this explicitly on its website. APS announced a proposed 45% increase on data center electricity costs to “make sure that (data centers) will continue to pay their fair share.” The recent agreement between Tucson Electric Power and Project Blue intends to do the same. And some data centers are even looking at generating their own power.

Data centers aren’t our biggest water worry

Regarding water, data centers have gotten so efficient at water use that, in some cases, they would use less water than vacant warehouses (of which there are, sadly, many). The Project Blue data center before Tucson City Council promised to be water-positive for the city, and other cities, such as Chandler have proposed caps on water usage by data centers. These caps are the same that apply to other businesses; data centers don’t get a special water deal. And, really, if you’re looking to pin water woes on any industry, it’s not chip-manufacturing, and it’s not data centers. It’s farming (over 70% of Arizona’s water supply goes to agriculture).

Lastly, regarding land, of course people don’t want to have neighborhoods disrupted by massive warehouses. And nobody should feel like they got into a bidding war with a data center for a home in a cute, quiet neighborhood. That’s why we have noise ordinances and zoning laws. Arizona still has plenty of space. The smart people in city planning can figure it out. And unlike big box stores, data centers don’t have 18-wheelers constantly delivering supplies.

Arizona is a state known for growth. We’ve grown massively in residents. We’ve grown massively in housing (and need to do more). We’ve grown massively in tourism. We’ve grown massively in healthcare. We’ve grown massively in education. And we’ve recently grown massively in semiconductors.

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There’s no reason we can’t keep growing in data centers.

Stephen Richer is the CEO of Republic Affairs, a fellow at the Cato Institute, and a former Maricopa County Recorder. Josh Heywood is operations manager at Republic Affairs.



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Founding Fathers-themed ice cream parlor makes Arizona debut

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Founding Fathers-themed ice cream parlor makes Arizona debut


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A former candidate for Gilbert mayor has opened the first Arizona location of a Founding Fathers-themed ice cream shop in Chandler.

Brooker’s Founding Flavors Ice Cream is a Utah-based ice cream shop centered around the early history of the United States. Female employees scoop cones in bonnets and dresses; male employees wear tricorn hats and coats. The ice cream flavors have names like Martha Washington’s Colonial Cotton Candy and Alexander Hamilton’s Not Throwing Away My Scoop.

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On a trip to Utah in 2019, Arizonan Shane Krauser went to a Brooker’s and was blown away.

“I walked out of that, called my wife Janelle and I said, ‘We will own one of these,’” Krauser said.

The couple had no previous restaurant experience, but decided to open up the chain’s first location outside of Utah, choosing a storefront near the intersection of Chandler Boulevard and Dobson Road. The store opened on June 6.

Krauser loves how the shop creates conversation among customers about American history.

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“I love history. I love the Founding Fathers. I love the ideals of America,” Krauser said. “It’s an amazing concept.”

Opening Founding Flavors isn’t political, it’s a ‘labor of love’

Krauser is a retired lawyer turned motivational speaker who addresses topics including “freedom, the proper role of government and the parameters of the U.S. and state constitutions,” according to his website.

In 2024, Krauser ran for Gilbert mayor, but withdrew his candidacy amid scrutiny over involvement with a past investment fraud scheme and his son’s appearance in a video with the Gilbert Goons, The Arizona Republic reported.

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Although the shop plans to host events celebrating the 250th anniversary of the U.S., such as one for Constitution Day in September, Krauser said he does not see the ice cream store as related to his political career.

“The mayoral run was something to be involved in politically. This is more of a labor of love,” Krauser said. “This is not political in nature at all. It’s an ice cream shop with an American theme.”

Details: 2560 W. Chandler Blvd. #3, Chandler. brookersicecream.com, 480-881-6100.

Reach the reporter at reia.li@gannett.com. Follow @reia_reports on Instagram.

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Wife turns in Arizona startup CEO husband over fraud allegations

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Wife turns in Arizona startup CEO husband over fraud allegations


An Arizona chief executive officer is facing major legal trouble after being accused of embezzling money from his company.

What we know:

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Cyber Dive is an Arizona startup that sells child-safety smartphones, designed so parents can monitor their children’s online activity. The company is run out of a business complex in Mesa, but the startup is barely hanging on after the CEO allegedly took off with the money to spend on his girlfriend.

Jeffrey Gottfurcht is facing federal embezzlement charges. He stands accused of lying and doctoring documents to trick investors before running off with at least $1.5 million.

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On the company Facebook page, Gottfurcht claimed to be the first rheumatoid arthritis sufferer to scale Mount Everest.  

Local perspective:

Red flags first popped up at the company on Feb. 13, with strange occurrences coming into the office.

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Derek Jackson, who co-founded Cyber Dive, recalled the moment the discrepancies came to light.

“They mentioned to me something about getting routing documentation for funds from an acquisition deal,” Jackson recounted. “They said ‘where are those documents?’ He said he was gonna send him at 3 p.m. today, and my response was what deal are you talking about?”

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Dig deeper:

Court documents show Gottfurcht used the money to buy his escort girlfriend a Lamborghini, a four-bedroom house in Miami, and a diamond ring. The girlfriend has posted videos on TikTok, but her identity is hidden because she has not been charged with a crime.

When asked to confirm if Gottfurcht purchased the car, the diamond ring, and the house, Jackson responded, “Yes. So it gets deep. Yes, it gets very deep.”

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“It’s a huge gut punch,” Jackson said regarding the impact on the startup. “I think it’s been challenging to stay motivated to keep the company going because when this happened, Jeff drained the account to zero.”

At the Cyber Dive headquarters, half the workforce was let go. Jackson is now serving as the interim chief executive officer, looking for new investors to keep the lights on while coming to grips with the loss of a partner and friend.

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Jackson stated that the total amount of money taken is closer to $4 million.

“I was in the army. I was an intelligence officer. I was targeting people in ISIS. I don’t even hate terrorists as much as I hate Jeff right now,” Jackson said.

The other side:

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No one answered the door at the Paradise Valley home Gottfurcht shares with his wife and three children. Court paperwork shows that his wife is seeking a divorce, and helped turn her husband in to the authorities.

What’s next:

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Gottfurcht was previously arrested in Scottsdale in May over allegations of domestic violence. He remains behind bars on a $250,000 bond. 

The Source: Information in this report was gathered from Derek Jackson, and from court documents.

Crime and Public SafetyTechnologyBusinessMesaNews
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NAU launches first-of-its-kind engineering degree to fast-track Arizona’s future workforce – The NAU Review

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As Arizona’s semiconductor and advanced manufacturing industries continue to grow at a rapid pace, Northern Arizona University’s Steve Sanghi College of Engineering is launching a new degree program designed to help meet the state’s workforce needs.

Beginning this fall, NAU will offer a Bachelor of Professional Studies in Engineering Technology, a flexible, workforce-focused degree pathway that prepares students for careers in microelectronics, semiconductors and advanced manufacturing in as little as three years. The 90-credit bachelor’s degree creates a more accessible pathway into engineering careers through a hands-on, applied curriculum and a streamlined transfer model with Arizona community colleges.

The program follows a 45-45 completion structure, allowing students to complete 45 credits at a community college and 45 credits through NAU. Courses will be delivered through synchronous remote instruction at NAU’s North Valley campus in Phoenix and at Pima Community College in Tucson, increasing access for statewide students.

Addressing Arizona’s growing semiconductor workforce

Designed with workforce readiness in mind, the program emphasizes practical engineering application, systems implementation, testing, quality control, systems analysis, manufacturing, fabrication, process control and project management. Students will gain technical and problem-solving skills aligned with the needs of Arizona’s rapidly evolving manufacturing economy.

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“This new bachelor’s degree empowers students to identify real-world engineering challenges and develop practical solutions,” said James Palmer, associate dean for academic affairs at the Steve Sanghi College of Engineering. “We are creating a more accessible pathway into engineering careers while preparing graduates to support Arizona’s growing microelectronics and semiconductor industry.”

Arizona has emerged as one of the nation’s fastest-growing semiconductor hubs, with more than $200 billion in semiconductor-related investments announced in the Greater Phoenix region since 2020, including expansions from Intel, TSMC and Amkor Technology. TSMC alone has committed up to $165 billion toward Arizona operations, including multiple fabrication plants and advanced packaging facilities expected to create thousands of technical and manufacturing jobs.

Industry demand continues to grow for professionals with applied engineering and advanced manufacturing skills in areas such as process engineering, manufacturing systems, equipment operations and yield enhancement. NAU’s new degree program was developed to help students quickly enter these high-demand career fields while supporting Arizona’s long-term economic growth and domestic semiconductor manufacturing capacity.

The program also aligns with NAU’s strategic commitment to expanding access to affordable, student-centered educational opportunities that prepare graduates for meaningful careers and long-term success.

Students interested in learning more about the Bachelor of Professional Studies in Engineering Technology program should contact SCE@nau.edu.

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