My View: Arizona earns ‘superpower’ status in new national AI infrastructure report
Steven Zylstra, Contributing Writer
Story Highlights
- Arizona ranks sixth nationally with 164 data centers and fifth with 149 planned
- The state attracted $2.10 billion in AI venture capital across 203 deals
- Arizona’s technology jobs grew 11 percent from 2019 through 2025
Any regular reader of this column knows I don’t hesitate to share the stories of why Arizona is home to great success stories of technology. But when others use descriptions like “superpower” and “leader/strong,” that adds to my bragging rights.
Those words jumped out at me while reviewing the recently issued report, America’s AI Surge: Powering Investment, Jobs, and Growth in Every State, a review of how artificial intelligence is reshaping economic growth in the United States through such actions as venture investment, job creation and expansion of infrastructure.
Using a variety of specialized data sources, the report was issued by the Vienna, Virginia-based American Edge Project, a coalition dedicated to advancing America’s technological leadership, strengthening innovation and protecting U.S. competitiveness.
What grabbed my attention were maps that gave snapshots of how the states fared in different categories. “Superpower” was the label given to Arizona based on the impact of data centers. This was supported with 164 existing data centers counted last year (No. 6 in the nation) and 149 facilities planned or under construction (No. 5), making the state one of the most important AI-infrastructure markets.
The “leader/strong” description was based on the number of venture capital deals in AI and machine learning. More than $2.1 billion in AI-related venture investment (No. 18) for 203 deals (No. 18) was tallied from 2019 to 2025, indicating robust innovation and startup formation.
When it came to jobs, we joined a number of states earning “moderate growth.” With 11% growth in net technology jobs (No.30) from 2019 to 2025, Arizona had more than double the overall national employment rate, reinforcing our role as a fast-growing tech hub.
AI accelerates Arizona tech investment
This report validates what Arizona’s technology community experiences every day: AI is accelerating innovation, investment and job creation across every corner of our state.
A big shot in the arm for the demand comes from Phoenix ranking second in established global data center markets, according to Cushman & Wakefield. Add to that the semiconductor value chain claiming the No. 1 spot in the nation by exceeding more than $100 billion in investment since 2020 to help create more than 33,000 jobs, according to Greater Phoenix Economic Council.
Arizona contributed to good news for the entire nation. AI drew $560 billion in venture capital through nearly 27,000 deals in all 50 states from 2019 through August 2025 to fuel innovation, new companies and demand for services. Technology employment grew 2.5 times faster than the overall rate as more than half the states reported more than 10% technology job growth since 2019.
AI also drove expansion of data centers across the country. The U.S. had more than 4,100 active data centers, with nearly 2,800 more planned or under construction. This buildout is expected to create 5.4 million temporary and permanent jobs and bring in $27 billion in new state and local tax revenue over the next decade. Notably, private investment in AI data center construction jumped nearly 70% from 2023 to 2024.
Arizona certainly is uniquely positioned to lead in this new era if we continue to champion smart, pro-innovation policies that support responsible growth. But there are some storm clouds building. The report warns that more than 1,100 state-level AI bills introduced in 2025 across the nation risk slowing momentum by adding legal uncertainty, raising compliance costs and discouraging capital investment.
Modernizing Arizona power grid is a priority
On the other hand, states demonstrating regulatory restraint, modern permitting and stronger energy competitiveness are attracting more data centers, more tech jobs and more AI companies. Include Arizona in this group as only seven AI bills had been proposed as of October 2025, putting us at No. 39 in the nation.
The report offers strategic actions that federal and state lawmakers can take now to lock in long-term U.S. competitiveness and keep the nation ahead in the global AI race, including:
- Codifying and funding President Donald Trump’s AI Action Plan that addresses many of the challenges facing AI leadership and will create a durable federal playbook for growth to keep future administrations from reversing course
- Modernizing and expanding the electric grid to meet AI-driven power demand
- Streamlining permitting for data centers, semiconductor facilities and energy infrastructure
- Strengthening talent pipelines through science, technology, engineering and mathematics (STEM) education, workforce training and high-skilled immigration reform
- Temporarily pausing state-level overregulation that threatens AI innovation and job creation
- Expanding local innovation sandboxes and public-private partnerships that accelerate real-world deployment of AI solutions
I encourage you to take your own look at the report and ask your state and federal legislators to do the same. After all, we all have a piece of the action in the quest to get an A+ when it comes to AI.
Steve Zylstra is president and CEO of the Arizona Technology Council.