This opinion column by Arizona Chamber of Commerce & Industry President and CEO Danny Seiden originally appeared in The Phoenix Business Journal.

We’ve seen a lot in the news lately about “data centers.” But what exactly are they, and why should Arizonans care?

Think of a data center as a digital warehouse—a secure, high-powered facility where the information that drives our modern lives is stored and managed. From the apps on your smartphone to streaming services, rideshare platforms, cloud-based work tools, banking systems, and national defense network—it all runs on data, and that data needs a home.

That home is increasingly being built right here in Arizona.

Data centers are the backbone of the digital economy. They ensure we stay connected, productive, and competitive. As artificial intelligence grows at an exponential pace and more industries digitize their operations, the demand for secure, high-capacity data storage has never been greater. Without data centers, our way of life—both economically and in terms of national security—simply doesn’t function.

Arizona is leading the way. Why here? Two reasons: first, our geography. Arizona experiences very few natural disasters, which means data centers here are less likely to be disrupted by hurricanes, earthquakes, or floods. Second, our energy grid is among the most affordable and reliable in the nation. That’s a huge draw for companies looking to build infrastructure that requires massive and continuous power.

Some skeptics have asked: Do we really need these? They argue that data centers consume space and energy and don’t create as many jobs as traditional industries. And some cities are even putting out “not welcome” signs.

They could not be more wrongheaded.

While data centers may not employ thousands of people onsite, their impact ripples far beyond their walls. Each center supports a network of electricians, engineers, construction workers, IT professionals, security teams, and more. Cities that reject these projects or demonize them do so at their own peril – capital projects like this help bring needed tax dollars for schools, police, and fire. And importantly, data centers enable every other job in a digital economy—from fintech startups and defense contractors to e-commerce platforms and healthcare providers.

Moreover, they strengthen our national security. In an age where cyber warfare is a real and growing threat, having domestic infrastructure that is secure is a national imperative. Arizona’s stable climate and location away from coastal vulnerabilities make it an ideal place to house the critical data that keeps our defense, intelligence, and communications systems running.

The presence of these centers also signals something else: Arizona is a player in the global technology race. Just as we’ve led on semiconductors, biosciences, and advanced manufacturing, our investment in digital infrastructure shows that we are ready for the future — and helping to shape it.

This is not just about big tech. It’s about ensuring Arizona families have access to high-paying careers, our small businesses have the tools to compete, and our nation has the digital capacity to protect and project its values around the world.

The ripple effects of this investment—in jobs, innovation, and national security—are just beginning to be felt.

But one thing is clear: Arizona isn’t just participating in the digital revolution. We’re leading it.

Danny Seiden is president and CEO of the Arizona Chamber of Commerce & Industry.