North American private independent power producer Invenergy announced an agreement with pipeline operator Tallgrass to develop three new natural gas power plants in Arizona to meet rapidly growing local electricity demand.
The deal, announced on February 20, supports Invenergy's plans to build power generation facilities in Maricopa County and Yuma County. Tallgrass, a Colorado-based infrastructure group, will be responsible for providing the natural gas transportation system. Specific site details have not been disclosed.
Tallgrass recently participated in a Wyoming data center project involving 2.7 gigawatts of gas-fired generation capacity. Daniel Runyan, Invenergy's Senior Vice President of Development, stated: "During our decade of operations in Arizona, we have been committed to providing diversified energy solutions. Rising electricity demand makes natural gas increasingly important for ensuring supply reliability, and this long-term agreement with Tallgrass reflects our commitment to the local community."
Invenergy noted that Arizona's electricity consumption is projected to grow by over 40% in the next five years due to population growth, manufacturing expansion, and artificial intelligence development. Current interstate pipeline limitations are causing tight natural gas supply. The company is also building the 475-megawatt Hashknife Solar Center for Arizona Public Service, scheduled to begin operations next year.
Adam Schiche, Vice President of Business Development at Tallgrass, said: "Combining natural gas with renewable energy can reduce energy costs and support technological innovation. We are pleased to assist Invenergy in powering critical infrastructure." Greg LaVann, President of the Greater Yuma Economic Development Corporation, believes this collaboration enhances regional energy resilience and attracts businesses requiring large-scale power.
Yuma County official Jonathan Lines emphasized that investing in energy reliability helps meet the needs of a growing community. Headquartered in Chicago, Invenergy has developed over 220 projects globally with a total capacity of 36 gigawatts and operates more than 20 gigawatts of power generation facilities.
