Report: Microsoft may open large data center in Phoenix

Apple may soon not be the only recognizable tech giant to boast a large data center in the Valley.

The Phoenix Business Journal reports Microsoft is looking to open a new data center on Union Hills Drive near Interstate 17 in north Phoenix.

The project could total as much as 575,000 square feet and the transaction may be completed via private equity firms and other data center entities even though it will be Microsoft operations, according to the industry executive who asked not to be named.

A real estate broker who asked not to be identified said the deal closed last week.

Microsoft representatives have declined commenting on the reported Phoenix deal.

State Sen. Jeff Dial, R-Chandler, introduced a data center bill to the Arizona Legislature two years ago. According to Dial, the legislation has helped attract more than $1 billion of data centers over the last two years — likely including Apple’s proposed Mesa facility in that assessment.

The Phoenix Business Journal says Microsoft is advocating for adjustments to the 2013 data center tax breaks.

Dial has introduced a data center proposal amending 10- and 20-year tax breaks on equipment. He said Microsoft has said the changes and a favorable tax climate would help the chances of the Redmond, Washington-based company landing in Arizona.

Apple could also qualify for the state’s data center tax breaks and other business incentives.

Microsoft already boasts more than 100 data centers worldwide, including in domestic cities such as Chicago; San Antonio; Des Moines, Iowa; Quincy, Washington; and Cheyenne, Wyoming.

KTAR News’ Bob Trent contributed to this report.