Arizona Technology Council Highlights New National Report Showing AI as a Major Economic Driver for the State

PHOENIX - EntSun -- The Arizona Technology Council in partnership with the American Edge Project (AEP) and the Technology Councils of North America (TECNA), today announced the release of a new national report, America's AI Surge: Powering Investment, Jobs, and Growth in Every State. The report provides one of the first comprehensive state-by-state examinations of how artificial intelligence (AI) is reshaping economic growth in the United States, including venture investment, technology job creation and the rapid expansion of AI-related infrastructure.

"AI is transforming state economies, and this report shows just how much opportunity there is across the country," said Doug Kelly, CEO of the American Edge Project. "Every state has a stake in America winning the global AI race—and the ones that modernize energy, permitting, and innovation policies will lead the next decade of economic growth."

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Nationally, the study finds that from 2019 to 2025, AI attracted $560 billion in VC investment, helped drive 14% tech job growth, and accelerated a historic data-center buildout projected to generate 5.4 million jobs and $27 billion in new state and local tax revenue over the next decade.

"This data gives policymakers a clear picture of where momentum is building and what it will take to stay competitive," said Jennifer Young, CEO of TECNA. "States that embrace pro-innovation rules and strong digital infrastructure will attract the jobs and investment of the AI era."

Key Findings for Arizona

According to the report, Arizona's technology ecosystem is experiencing strong, broad-based momentum driven by AI:

• $2.1 billion in AI-related venture investment across 203 deals since 2019, signaling robust innovation and startup formation statewide.
• 11% growth in net tech jobs, outpacing national overall employment and reinforcing Arizona's role as a fast-growing tech hub.
• 164 existing data centers and 149 additional facilities planned or under construction, positioning Arizona as one of the country's most important AI-infrastructure markets.
• The state's data-center expansion is projected to generate 251,512 temporary construction jobs, 37,250 permanent jobs, and $2.63 billion in new tax revenue over the next decade.

"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," said Steven G. Zylstra, president and CEO of the Arizona Technology Council and SciTech Institute. "From semiconductors to data centers to next-generation software companies, Arizona is uniquely positioned to lead in this new era if we continue to champion smart, pro-innovation policies that support responsible growth."

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Arizona is also highlighted as a national semiconductor and advanced manufacturing powerhouse, with Phoenix recognized as the #2 global data-center market and the state's semiconductor value chain attracting more than $100 billion in investment and 33,000+ jobs since 2020.

This report arrives at a pivotal time, as Arizona continues to experience unprecedented growth in semiconductors, data centers, electric mobility, aerospace, and advanced manufacturing. The findings provide new insights that can support discussions with legislators on the importance of pro-innovation policies, guide workforce and STEM planning aligned to AI-era job creation, strengthen Arizona's position in national site-selection and investment decisions, and highlight areas where energy, permitting, and infrastructure modernization are needed to maintain competitiveness.