Copia Power's $1.7 billion plan pairs solar with data centers

Copia Power is seeking to rezone about 3,100 acres near Tonopah, an hour west of Phoenix, for the Belmont Energy Center. Most of the land, roughly 2,860 acres, would be utility-scale solar. The rest, roughly 320 acres, would hold gas generation, battery storage, and data centers. Phoenix Business Journal, via Connect CRE, reported that the project is backed by a $1.7 billion construction loan and a power purchase agreement with Arizona Public Service. Copia expects it to be operational within the next year.

Data center approvals in the region likely require the developer to prove the project won't strain existing power grids, Connect CRE notes. Copia's answer is to put the generation on the same parcel as the data centers. Raw land becomes a self-contained power-and-compute site.

A $1.7 billion construction loan makes the project a utility-scale bet. The Arizona Public Service agreement locks in a buyer for the output before construction is complete. For investors, the value sits less in the land than in the secured capacity that comes with it. That capacity is getting pricier. Cushman & Wakefield's 2026 cost guide, which PWD covered this week, tracks the climb. The guide puts data center cost growth at 21% per megawatt. Self-generation is one way to cap that cost, and the willingness of lenders to back the project suggests they accept the approach, at least while the offtake is in place.