Arizona’s rapid growth isn’t slowing down—new homes, businesses, and industries are reshaping the state’s economy at an unprecedented pace. But behind this boom is a critical factor: reliable and affordable energy. Southwest Gas is playing a key role in supporting this expansion, ensuring that homes stay warm, businesses have the necessary energy resources, and communities grow sustainably. By working closely with city planners and economic developers, the Company is not just fueling buildings—it’s fueling jobs, innovation, and long-term prosperity for communities across Arizona.

Since 2020, more than 155,000 new customers—including 40,000 in 2023 alone—have started service with Southwest Gas across Arizona, California, and Nevada. As communities grow, so does the demand for safe, reliable, and affordable natural gas—powering everything from home-cooked meals to thriving businesses.

Economic development and expansion efforts impact customers and communities in numerous ways. Attracting new industries and companies, from commercial to small businesses, creates new and diverse jobs and workforce development opportunities. New residential communities follow to provide necessary housing, and in turn, those residents can enjoy these local businesses, restaurants, and more, enhancing the quality of life for everyone who calls these neighborhoods home. 

Keeping Up with Artificial Intelligence

Many factors, such as Arizona’s pro-business environment, affordable and diverse energy sources, available land, and the climate, have made the state a hot spot for tech and manufacturing companies. 

With the increased use of cloud-based technology and AI, the demand for large-scale data centers is skyrocketing, with projections showing U.S. data center demand will more than double by 2030. That’s why big tech companies are investing in states like Arizona. Natural gas is playing a critical role in supporting their energy needs to support vast networks of servers and cooling systems, especially during peak demand times or when renewable sources are not sufficient.

Another booming industry? Microchip and semiconductor manufacturing. Phoenix has been home to large-scale microchip producers for decades, but in the last five years, it has become a hub for the industry, boasting more than 70 semiconductor-focused companies that operate in the Valley. Like data centers, natural gas is instrumental in microchip manufacturing, where consistent, high-quality energy sources are needed for the precision and scalability of production processes.

This influx of high-tech business flooding into the state has created even more opportunity to collaborate across industries to ensure the long-term success of the communities supporting these new companies and the jobs that follow. From workforce education to the energy infrastructure necessary to fuel operations, Southwest Gas is active in not only keeping up with demand, but expertly planning for the future.

Connecting Communities with Opportunities

In addition to providing natural gas service to major international semiconductor companies, the availability of gas service in Phoenix is also a critical factor for other manufacturing industries, for example beverage manufacturing, when considering new locations for their facilities. A recent addition to Phoenix West Valley was Nestle USA, which chose Glendale for its newest beverage facility. The rapid transformation of the West Valley into this hub of commerce has brought with it demand for new housing developments and master-planned communities and the key industries that follow, like healthcare, hospitality, and small business.

But the expansion is not just in the Valley-proper. Earlier in 2024, Kohler opened doors to its one-million-square-foot bath and shower fixture manufacturing facility in Casa Grande, bringing with it 400 full-time jobs. Like other manufacturing facilities, the Kohler operation relies on diverse energy sources including natural gas which was established to the site in May of 2023.

All who require diverse and affordable energy sources and Southwest Gas continues to meet that demand while continually identifying new expansion opportunities to support the ongoing growth and success of the state.

Safety First

Amidst all this growth, Southwest Gas’ top priority is keeping customers and communities safe. Through enhancements in safety measures and the implementation of annual leak surveys in Arizona, the goal is to continually improve service, safety, and reliability. By taking a proactive approach to public outreach and leak detection, Arizona boasts one of the most modern natural gas infrastructures in the U.S., fostering a safer, sustainable, and more informed community. 

As Arizona continues to grow, the commitment to delivering reliable, affordable energy while expanding service to even more communities is unwavering. Whether it’s powering homes, fueling small businesses and restaurants, or supporting large-scale industries, Southwest Gas is proud to be part of the state’s success story.

For more information on how Southwest Gas is fueling the future, visit swgas.com.