Arizona’s lifeline for chip manufacturing is drying up

Arizona’s semiconductor boom—anchored by Intel, TSMC, and CHIPS Act-backed expansion—is increasingly constrained by Colorado River shortages, creating higher utility costs, supply-chain risk, and potential limits on where next-generation AI chip capacity can grow. For CIOs and technology leaders, this elevates water availability into a strategic infrastructure issue that should factor into site selection, resilience planning, sustainability commitments, and long-term capacity strategy for manufacturing and critical suppliers.