Phoenix

Data center real estate market in North America

2nd

In supply of data center real estate, measured by commissioned power

3rd

In demand for data center real estate, measured by TTM absorption

5th

In hyperscale owned facilities, measured by operational power

Real estate supply pipeline

Rank amongst North America markets

2nd

Commissioned

Colocation power commissioned within the market, measured in MW, includes preleasing

4th

Available

Colocation power commissioned and available within the market, measured in MW

19th

Under Construction

Speculative colocation power under construction within the market, measured in MW

2nd

Planned

Speculative planned colocation power that hasn't yet broken ground, measured in MW

About Phoenix

Many Phoenix businesses experienced challenges over the past five years, but data centers have been a success story in the market. Data center users and operators have been extremely active in Phoenix recently, spurring an increase in supply to meet the demand from users both in and out of the market. As Phoenix's business climate improved, opportunities and growth were created for data center users and operators from across the United States.

From a geographic perspective, most of the colocation data center providers are located in Phoenix proper and Chandler, AZ, though new opportunities are emerging in the suburbs of Mesa and Goodyear. The Phoenix market benefits from its reasonably low power cost, especially when compared to the highly-occupied Northern California and Los Angeles data center markets, where there is a significant price difference. Demand in Phoenix originates from companies in the market and companies outside that view the Phoenix market as a disaster recovery location. When compared to other major U.S. data center markets, Phoenix is very competitive as it relates to colocation rates, power cost, and tax incentive opportunities.

Largest colocation providers

Measured by total commissioned power

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