[natnat]

There was a really good episode of the Odd Lots podcast where they discussed this. Arizona is a very favorable location for semiconductor fabs because there's a very low risk for natural disaster (no hurricanes or earthquakes), the temperature changes are relatively predictable, land and electricity are relatively cheap, and Intel already has a large fab there. Water is a little bit of a struggle, but they can buy water rights from farmers, who use most of Arizona's water.

[koheripbal]

Solar power is extremely cost effective in Arizona. It more than compensates for the additional heat. It also allows for cheaper data center hosting.

[Kye]

>> "but they can buy water rights from farmers, who use most of Arizona's water."

They probably waste less water, so this might be a net positive for the environment. Abuse of water rights given out in a very different time is a major point of contention in the desert region of the country.