AGP Executive Report

Data Center Investment: Casa Grande approved a 954-acre data center after the county rejected similar plans, while Gilbert delayed action on new rules until December. Proposed limits include 650-foot residential setbacks and restrictions on cooling water; Attorney General Kris Mayes has called for a pause on development, putting growth and resource concerns in focus. Jobs & Pay: Arizona IAM members ratified a Raytheon contract delivering 24% average wage growth. Phoenix manufacturer Swift Coat plans engineering hires, reflecting how factory jobs increasingly require specialized skills. Gilbert’s Awake Window & Door is also hiring people with criminal records, linking workforce opportunity to business growth. Tourism: Grand Canyon businesses say a $100 fee for foreign visitors is hurting tourism. Arizona’s newly designated Chiricahua National Park, meanwhile, could draw more visitors to the southeast.

Data Center Push: Casa Grande approved a 954-acre data center, even as Arizona Attorney General Kris Mayes called for a pause on development and Marana tightened its rules. Water and neighborhood impacts remain central to the debate. Grand Canyon Tourism: Businesses say a new $100 fee for foreign visitors is hurting international bookings. One tour operator reported just one German-speaking group through October, compared with about 10 in a typical year. Housing and Household Costs: Phoenix and Tucson markets are shifting toward buyers, while consumer sentiment in Phoenix has weakened as gas and mortgage costs rise. Arizona’s job market was flat in September, and prices are rising faster than paychecks. Growth and Investment: Hudbay and Mitsubishi have greenlit the Copper World mine, with production expected to begin in 2029. Arizona Latino businesses are growing at twice the pace of the state economy, according to a recent report.

Data Center Pushback: Attorney General Kris Mayes called for a pause on data center development, while Marana tightened its rules — a sign that Arizona’s growth ambitions are colliding with local concerns. Mining Investment: Hudbay and Mitsubishi approved construction of the $2.07 billion Copper World project in Southern Arizona, targeting first production in 2029. Jobs and Costs: Arizona’s job market was flat in September, while Phoenix consumer sentiment weakened as gas and mortgage costs climbed. Valley gas prices eased for a second week, averaging $4.51 a gallon, but remain high. Business Travel: Lufthansa plans nonstop Phoenix–Munich flights beginning in August 2027, adding a direct link for travelers and companies.

Data Center Debate: Attorney General Kris Mayes called for a statewide pause on new projects, citing water, power costs and neighborhood impacts. Marana is tightening its rules, while Gilbert weighs growth against water and residential protections. Major Investment: Hudbay and Mitsubishi approved construction of the $2.07 billion Copper World mine in Southern Arizona, targeting production in 2029. Arizona Economy: The state’s job market was flat in September, while Phoenix consumer sentiment weakened amid rising gas prices and mortgage rates. A separate report says Arizona prices are climbing faster than paychecks. Semiconductors: Intel says production tools are being installed at its Arizona Fab 62, a sign of continued investment in the state’s chipmaking industry.

Mining Investment: Hudbay and Mitsubishi approved $2.07 billion for the Copper World project south of Tucson, with construction expected to create more than 1,000 jobs and mining to begin in 2029. Yuma Regional Economy: A gold mine near the California border supports about 700 direct and regional jobs, underscoring its role as an economic anchor for Imperial County and neighboring Yuma. Data Centers: Gilbert is weighing rules on water use, noise and location as it seeks to balance tech growth with neighborhood protections. Jobs and Costs: Arizona’s job market was flat in September, while rising prices continue to squeeze household budgets. Commercial Real Estate: Phoenix industrial rents reached a new high, and a developer broke ground on a 343-unit North Phoenix complex near TSMC’s fabs.

Utility Costs: An Arizona Corporation Commission judge recommended an 11.2% residential rate increase for Tucson Electric Power and a plan allowing more frequent adjustments; commissioners are expected to vote Nov. 17. Infrastructure: Only three of Arizona’s 21 planned federally funded EV-charging sites are open, years after the state’s plan was approved. Real Estate: Leon Capital has broken ground on 343 apartments in north Phoenix near TSMC’s fabs, while Phoenix industrial rents have reached a new high. Semiconductors: Intel has begun moving tools into its Arizona Fab 62, which it expects to begin operating by the end of 2028. Mining: Copper World won approval to begin construction in the Santa Rita Mountains, advancing a major Arizona copper project. Business Growth: Latino-owned businesses in Arizona are growing twice as fast as the state economy, according to a new report.

Mining: Hudbay and Mitsubishi approved construction of the $2 billion Copper World mine southeast of Tucson, targeting production in 2029. Supporters point to copper demand; opponents warn of groundwater and habitat impacts. Tourism: Chiricahua is now Arizona’s fourth national park, with officials and economists hoping the designation draws visitors and boosts Cochise County businesses. Power & Data Centers: A judge backed an 11% TEP rate increase and yearly adjustments, while Arizona communities press for more transparency and local benefits from data center projects. Semiconductors: Intel has begun moving production tools into its Arizona Fab 62, with the plant targeting a 2028 start as Arizona and Saxony expand chip-industry ties. Local Business: New businesses are looking to revive Mill Avenue, betting on renewed nightlife and foot traffic in downtown Tempe.

Semiconductors: Intel has started moving production tools into its Arizona Fab 62, while surging AI-chip demand is pushing TSMC to consider expanding elsewhere in the U.S. Mining: Hudbay and Mitsubishi approved construction of the $2 billion Copper World project southeast of Tucson, advancing a major new Arizona mine. Small Business: Arizona Latino businesses are growing twice as fast as the state economy, according to a new report. Data Centers: Local pushback is mounting: Arizona’s attorney general is probing an Ahwatukee project, and Gilbert delayed a vote on a proposed buffer around data centers. Tourism: Chiricahua National Park’s new designation could bring more visitors and business to southeastern Arizona. Lufthansa also plans nonstop Phoenix–Munich flights starting in August 2027. Development: Construction is starting on a 190-unit Old Town Scottsdale apartment project that will preserve and reuse a historic building.

Semiconductors: Intel has started installing production tools at its Chandler Fab 62, a major step toward opening its sixth high-volume chip factory in Arizona. Data Centers: Attorney General Kris Mayes is investigating the Ahwatukee project as a nuisance, while Gilbert weighs a 650-foot buffer amid growing community pushback. Copper Mining: Hudbay and Mitsubishi approved construction of Copper World southeast of Tucson, with first production targeted for 2029. Tourism & Trade: Chiricahua is now Arizona’s fourth national park, a designation expected to draw visitors and support nearby businesses; Lufthansa plans nonstop Phoenix–Munich flights beginning in August 2027. Retail: Sprouts’ visits improved nationally in the third quarter, but Arizona same-store visits remained down 0.6% year over year.

Aviation: Chandler-based SyberJet says it has letters of intent for more than 50 SJ36 light jets, signaling early demand for its new aircraft. Mining: Hudbay and Mitsubishi approved Copper World, targeting production in late 2029. The Tucson-area mine is projected to create 500 permanent jobs and more than 1,000 construction jobs. Semiconductors: Intel has begun installing production tools at its Arizona Fab 62, which is expected to open by late 2028. Scottsdale investment: Texas barbecue chain Terry Black’s bought an Old Town property for $11.2 million for its first Arizona restaurant. Local innovation: Arizona’s Partnership for Economic Innovation awarded nearly $190,000 to two Arizona-built technologies, including a system to manage power demand from AI data centers. Air service: Lufthansa plans to launch nonstop Phoenix–Munich flights in August 2027.

Copper Investment: Hudbay Minerals and Mitsubishi have approved construction of the Copper World mine southeast of Tucson, targeting first production in 2029. Mitsubishi’s total investment is expected to reach $1.02 billion. Water Planning: Buckeye adopted five policies to guide water conservation, funding and development as the fast-growing city plans for long-term supply. Travel and Tourism: Lufthansa will launch nonstop Phoenix–Munich service in August 2027, adding a European link for Arizona travelers and businesses. Chiricahua’s new national park designation could also draw more visitors and spending to southeastern Arizona, though added tourism may strain local water and infrastructure. Regional Growth: Yuma and Mexican officials agreed to develop a framework for aerospace and spaceport cooperation aimed at attracting investment and strengthening cross-border supply chains. Mesa Venues: Legends Global will manage the Mesa Convention Center and Amphitheatre under a five-year deal, with plans to attract more business and assess venue upgrades. Colorado River: Arizona has joined Nevada’s lawsuit challenging the federal plan for river cuts, a dispute with major implications for the state’s water supply and economic growth.

Water and Growth: Arizona joined Nevada’s lawsuit challenging the federal Colorado River plan, a fight with stakes for farms, cities and future business growth. Data-Center Debate: As Arizona pursues major data-center investment, questions over water and power demands are growing. Small-Business Outlook: Phoenix ranked 13th among 56 metros for expansion prospects, while Tucson placed 49th, reflecting a sharp divide in job and business growth. International Link: Lufthansa plans three weekly nonstop flights between Phoenix and Munich starting in August 2027; Sky Harbor estimates the service could bring more than $80 million in annual economic impact. Scottsdale Investment: Terry Black’s BBQ bought a prominent Old Town property for $11.2 million as it prepares to enter the Arizona market. Local Support: Winslow is offering eligible businesses up to $30,000 to stay and grow; applications are due Dec. 18.

Data Center Boom: A projected $10 trillion U.S. buildout is drawing scrutiny over power, water and tax breaks. Arizona has already seen residents mobilize against a proposed Pinal County campus, sharpening questions about who pays for the infrastructure. Air Connectivity: Lufthansa plans to launch nonstop Phoenix–Frankfurt service in summer 2027, part of its biggest route expansion since 2020 and a potential boost for business and tourism links. Water Costs: Tierra Mesa residents in Yuma say bills have surged after a 314% rate increase, with one household reporting a jump from $74 to $400. The Arizona Corporation Commission chair will hear residents’ concerns Oct. 28. Copper Supply: Arizona’s congressional delegation is asking the Defense Department to assess whether copper mining and processing could expand on federally managed military land, without disrupting operations. Workforce: Gov. Katie Hobbs revisited a $3.6 million Wellton training center, where students are learning skills for electrical technology and advanced manufacturing jobs. Transportation: Arizona’s first federally funded EV fast chargers are now open, adding charging options along key routes.

Colorado River: Arizona moved to join Nevada’s lawsuit challenging federal water-cut rules, arguing that communities, tribes, farms and businesses need reliable river supplies. Competition: Attorney General Kris Mayes and the FTC sued to block PlayPower’s acquisition of BCI Burke, saying the deal could give a handful of companies 85% to 90% of the playground-equipment market and push up costs for schools and parks. Growth and infrastructure: Mesa residents raised concerns about data-center development, as Arizona’s push to attract the power-hungry facilities faces questions over water and community impacts. Chips and copper: TSMC Arizona is accelerating its production timeline amid booming AI-chip demand, while a new Arizona copper mine marks the first U.S. copper operation to launch since 2008. Cost pressures: An ASU economist says Arizona housing costs have climbed 40% to 50%, adding to inflation pressures on households and employers. Tempe is also asking voters to approve a sales-tax increase to fund city services.

Housing Market: Arizona home sales fell 40% from 2021 to 2025, while new real estate licenses dropped just 27%, leaving more agents competing for fewer deals. Copper Innovation: Phoenix-based Freeport-McMoRan is testing a new chemical treatment to recover more copper from mine waste, aiming for 800 million pounds a year as demand grows. Water and Growth: Arizona has joined Nevada’s lawsuit challenging federal Colorado River plans, warning that proposed cuts threaten supplies across the state. Local Business: Salad and Go is set to return after bankruptcy, with new owners planning to reopen stores. EV Infrastructure: The state’s first federally funded EV charging stations are now open.

EV Infrastructure: Arizona’s first three federally funded highway charging stations are open near Tucson and Yuma. About 80 more are planned, with federal grants covering most of the $76 million program. Energy Costs: Valley gas prices fell 9 cents this week to $4.64 a gallon, but remain nearly $1 higher than a year ago and at seasonal records. Political Accountability: The Arizona Senate has delayed its Sunshine Residential investigation until after the election. Investigators are examining whether $400,000 in political donations were tied to a sharp rise in state payments to the company. Water Supply: Arizona joined Nevada’s lawsuit challenging the federal Colorado River plan, as the state warns proposed cuts could deepen water pressures for communities and businesses. Mining and Industry: Arizona’s first U.S. copper mine to launch since 2008 is now operating, adding to the state’s role in supplying metal needed for AI and other technologies. Retail: Salad and Go’s new owners are preparing to reopen locations in Arizona after the chain’s bankruptcy.