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Trico CEO Addresses Marana Data Center Concerns: No Rate Hikes, Extended Benefits for Members

MARANA, AZ — In a wide-ranging discussion that aimed to dispel misconceptions about data centers coming to Marana, Trico CEO Brian Heithoff sat down with David Samorano, CEO of Live The Dream Media, to address community concerns head-on, delivering news that should ease the minds of worried residents: the upcoming data centers won’t increase electric rates for Trico members—in fact, they might delay rate increases for up to a decade.

Setting the Record Straight on Rate Increases

One of the most persistent misconceptions circulating in the community has been that recent rate adjustments are connected to data center development. Brian was unequivocal in his response.

“Data center needs were not part of the rate case because they are not certain,” he explained. The rate increase that went before the Arizona Corporation Commission was already planned, completely independent of any data center considerations. More importantly, Trico’s next rate adjustment isn’t projected until 2029—and that timeline doesn’t factor in data centers either.

Understanding the Power Demand

The conversation turned to what makes AI data centers different from their traditional counterparts, and why they’ve become a focal point of national energy discussions.

“AI data centers have higher power demands compared to traditional data centers,” Brian noted. “They’re more like manufacturing plants due to the creation of content.” This distinction is crucial—AI facilities aren’t just storing data, they’re actively processing and generating content, which requires substantially more energy.

But Brian contextualized this within broader trends: “We’re seeing increasing energy requirements in various sectors, including manufacturing and advanced manufacturing.” Data centers, he suggested, are part of a larger shift in how America consumes power, not an isolated anomaly.

The Economics of Modern Development

Perhaps the most eye-opening revelation came when Brian discussed how economic development metrics have evolved. The old model of counting jobs has given way to a more sophisticated analysis focused on tax generation.

“Advanced manufacturing, data centers, and renewable energy projects generate significant tax revenue,” he explained, adding a critical detail that many overlook: “Commercial growth requires less infrastructure compared to residential growth.”

This creates a beneficial cycle for communities. Business growth generates tax revenue that can improve community infrastructure and provide tax relief to residents, all while requiring less investment in roads, schools, and other services that residential development demands.

Protecting Members: The Trico Approach

When it comes to ensuring that data center development doesn’t burden existing Trico members, the cooperative has implemented stringent safeguards that go far beyond typical utility practices.

The Trico board established guiding principles and a rigorous intake process for any data center negotiations. The cornerstone of this approach? Data centers must pay upfront or provide security for infrastructure investments before Trico orders a single piece of equipment.

“We’re protecting Trico members from cost degradation and maintaining reliability,” Brian emphasized. The cooperative is currently collaborating with data center facilities to design transmission and distribution projects that will serve the new demand without compromising service to existing customers.

The Rate Relief Timeline

The financial benefits for Trico members are substantial and measurable. With one data center operational, Brian projects that the next rate adjustment could be delayed by three to four years. With additional data centers, that timeline could extend to ten years between rate adjustments.

“Data center revenue will help cover cost increases, benefiting Trico members,” he explained. It’s a straightforward value proposition: data centers pay for their infrastructure upfront, then generate ongoing revenue that offsets the cost increases all utilities face from inflation, equipment costs, and system maintenance.

An Energy Challenge, Not a Crisis

Addressing concerns about a national “energy crisis” related to data centers, Brian reframed the issue with historical perspective.

“The energy challenge is significant but manageable, similar to past infrastructure needs like air conditioning and irrigation,” he said. America has faced major shifts in power demand before—the widespread adoption of air conditioning in the Southwest, the electrification of farms, the rise of suburban sprawl—and the grid adapted.

Trico is planning proactively to meet increased power demands through strategic infrastructure investments, working collaboratively with facilities to ensure the grid can handle tomorrow’s demands while maintaining today’s reliability.

Looking to the Future

Beyond the immediate concerns about rates and reliability, Brian touched on Trico’s broader vision for innovation. The cooperative is exploring AI tools to enhance operational efficiency and introducing AI agents into internal processes—using the very technology that’s driving data center demand to serve members better.

“We’re focused on continuous improvement in providing great service to Trico members,” he noted, emphasizing that 2026 will see increased emphasis on these technological improvements.

The Bigger Picture

The interview concluded with a call for community trust and long-term thinking. Data centers represent more than just power demand—they’re potential engines of job creation, tax revenue, and economic opportunity for the Marana region.

The proactive measures taken by Trico and the Marana Town Council demonstrate that local leaders understand both the opportunities and the challenges. By requiring upfront investments, protecting existing ratepayers, and planning infrastructure carefully, they’re positioning the community to benefit from the data center boom without bearing its costs.

For a community concerned about its energy future, the message from Trico’s CEO was clear: the safeguards are in place, the benefits are real, and the cooperative’s 80-year commitment to serving its members remains unchanged

The full podcast is available here: https://youtube.com/live/04qXDNecH3I?feature=share

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