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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: Jim Mullens who wrote (195632)

9/16/2025 9:51:08 PM

From: Jim Mullens

2 Recommendations

Recommended By
Dr. John
VinnieBagOfDonuts

Respond to of 196875

Vinnie, re: AZ Semi fabs and data centers- Electricity demands.................................

Copilot Q&A - discuss TSMC, other Semi Fabs, and data center electricity demands on AZ

snip >>>>

The combined electricity demand from semi fabs and data centers could exceed 30,000 MW—nearly 4x current capacity.

>>>>>>>>>>>>>>>>>>

Arizona’s tech boom—driven by semiconductor fabs and data centers—is electrifying the economy, but it’s also putting unprecedented strain on the state’s power grid. Let’s break down the numbers and implications:

Electricity Demand: Semiconductor Fabs

?? TSMC’s Arizona Expansion

Current Demand: One fab requires ~200 megawatts (MW).
Planned Buildout: With six fabs, TSMC alone could require 1,000 MW—that’s 12.5% of Arizona’s current grid capacity.
Comparison: 1 MW powers ~750 homes. So 1,000 MW = power for 750,000 homes.

?? Intel & Other Fabs

Intel’s Chandler Campus: Estimated to draw 300–500 MW across three fabs.
Other fabs (Samsung, Amkor, etc.): Could add another 500–700 MW combined.

Total Fab Demand by 2035: ~2,000 MW or more

??? Electricity Demand: Data Centers

?? Explosive Growth

Current Load: Data centers already consume ~5,000 MW statewide.
Projected Growth: Could require up to 29,000 MW if all planned facilities are built.
AI Acceleration: High-performance GPUs (e.g., NVIDIA Blackwell) consume 60 kW per rack, multiplying demand.

?? Peak Demand Growth

100x Faster than residential growth
Could reach 16.5% of Arizona’s total electricity consumption by 2030

?? Arizona’s Grid Capacity & Challenges

Metric	Value
Current Grid Capacity	~8,000 MW
TSMC Full Buildout Requirement	~1,000 MW
Total Semi Fab Demand (2035)	~2,000 MW
Data Center Potential Demand	~29,000 MW
Required Grid Expansion	Grid must double by 2040

??? Utility Response

APS, SRP, TEP exploring:

New nuclear generation
Expanded solar + battery storage
Special tariffs for high-load customers

?? Final Takeaway

Arizona’s grid is at a crossroads. The combined electricity demand from fabs and data centers could exceed 30,000 MW—nearly 4x current capacity. Utilities are racing to expand generation, but the timeline is tight, and the stakes are high. Without strategic planning, this boom could lead to rate hikes, grid instability, or energy rationing.

Want to explore how other states (like Texas or Virginia) are handling similar surges—or dive into the role of small modular reactors in solving this?

To: Jim Mullens who wrote (195632)	9/17/2025 9:31:02 AM
From: sbfm	4 Recommendations Recommended By Jim Mullens Lance Bredvold Qurious VinnieBagOfDonuts Respond to of 196875

Maybe using desert water to irrigate alfalfa fields is not the highest and best use of a resource. (While most of the Alfalfa grown is used domestically, much is exported - to China and Saudia Arabia; I'd rather use that water to support domestic Chip Production. From Google AI: "Alfalfa grown in Arizona is primarily for domestic livestock, but the exported portion is mainly to the Middle East (Saudi Arabia, UAE) and China, driven by their growing dairy and livestock industries. Middle Eastern companies historically imported significant amounts to their home countries for animal feed, though these operations faced recent lease terminations due to water concerns. China has long been the largest importer of U.S. alfalfa, including Arizona's, to meet its demand for high-quality feed. Key Export Destinations: China: China is a major importer of U.S. alfalfa, including hay from Arizona, due to its need for high-quality animal feed for its expanding dairy and livestock industries. Middle East (Saudi Arabia, UAE): Foreign-owned companies, such as Almarai and Fondomonte, grew alfalfa in Arizona for export to Saudi Arabia and the United Arab Emirates. However, some of these operations have recently ceased due to lease terminations and scrutiny over their groundwater use.") From Google AI: "In Arizona, agricultural use accounts for the vast majority of water consumption, around 72-74% of the total, while industrial use, including chip factories, makes up only about 6%. For example, one modern semiconductor factory can consume as much water as 33,000 households in a single day, but this is a tiny fraction compared to the immense water demands of irrigated agriculture in the state. Agriculture's Dominant Role Majority Use: Irrigated agriculture is Arizona's largest water user, consuming the majority of the state's water. Significant Volume: Between 2010 and 2020, Arizona farms used approximately 4 billion gallons of water daily, equating to nearly 1.5 trillion gallons per year. Portion of Total: This accounts for roughly 72-74% of Arizona's total annual water usage. Chip Factory Water Use Industrial Sector: Industrial water use, which includes chip factories, accounts for a much smaller portion of Arizona's total water use, around 6%. High Per-Facility Demand: While the overall industrial percentage is small, a single chip factory can use a substantial amount of water, potentially requiring 10 million gallons of ultrapure water per day. Water Treatment and Recycling: The semiconductor industry uses vast quantities of water, especially for ultrapure water production. They are investing in water recycling and reduction technologies, though. Key Comparison The water used by one or even multiple large chip factories, despite their individual high consumption, is a minuscule part of Arizona's total water supply compared to the ongoing need to irrigate vast agricultural lands.