Federal Colorado River cuts to trim Arizona water supply as TSMC and Intel fabs expand

A federal plan finalized in August will cut Arizona's Colorado River intake by at least 760,000 acre-feet a year starting in 2027, more than a quarter of the state's typical annual draw from the river, as TSMC and Intel expand advanced-chip fabs around Phoenix. The Bureau of Reclamation adopted the plan after basin states failed to agree. Maricopa County draws close to 40 percent of its supply from surface water, and Phoenix charges industrial and residential customers the same water rates, so TSMC faces the same increases as households. TSMC says Phoenix's long-term water plan, including varied sources, was one reason it chose the city; it recycles 65 percent of its Arizona water and targets at least 90 percent once a reclamation plant is finished.