Data center developers flock to Phoenix, with major projects in pipeline

Dec 30, 2023, 5:00 AM

A conceptual rendering of the entry way to Google's $1 billion data center campus in Mesa. The proj...

A conceptual rendering of the entry way to Google's $1 billion data center campus in Mesa. The project was referred to its code name "Red Hawk" throughout a recent meeting in the city of Mesa. (Stone Applications LLC via city of Mesa)

(Stone Applications LLC via city of Mesa)

The Phoenix metro has been one of the top markets for data center development over the past few years. As new projects complete and start construction, the Valley has one of the deepest pipelines of development in the country.

“Every major North American data center player is in some fashion in the market,” said Jacob Albers, head of alternative insights for Cushman & Wakefield. “Everything that’s announced is either built-to-suit for a specific user or is pre-leased quite rapidly. It’s definitely one of the most exciting and rapidly growing markets right now in North America.”

Preliminary end-of-year numbers from Cushman & Wakefield show there are 325 megawatts of new data center capacity under construction in the Valley while another 3,215 megawatts sit in the pipeline at some stage of planning and development, which could take years to fully build out. Some of the big hyperscale users include Google, Meta Platforms Inc., QTS Realty Trust, and Vantage Data Centers, which are well underway in their build-out of data centers.

This story is posted in partnership with Phoenix Business Journal. Click to read the full story.

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Data center developers flock to Phoenix, with major projects in pipeline