Hosting will be where it's cheap, and that's not in Phoenix or Vegas, except those things that must be near-line. Deep thought shit will be in rural Oregon or Virginia, where juice more plentiful and trouble is not.
It's the same issue with all power grids, the one in the city isn't separate from the one in rural locations, hell over here the longest main line is over 1000km long, that's a whole lot of locations getting their electricity from the same place
The bulk of datacenters in Virginia are not in a rural area at all. The Northern Virginia area is the datacenter capital of the world, and they are all in urban/suburban areas. Check it out for yourself.