What's Hot

    Major General Plan Amendments Requested for 1,800-acre Florence Area

    September 5, 2025

    Mesa Approves 29-Unit Townhome Plan

    September 5, 2025

    VanTrust Announces 1.1MSF Industrial Plan in Glendale

    September 5, 2025
    Facebook Twitter Instagram
    AZBEX
    NEWS TICKER
    • [September 5, 2025] - Major General Plan Amendments Requested for 1,800-acre Florence Area
    • [September 5, 2025] - Mesa Approves 29-Unit Townhome Plan
    • [September 5, 2025] - VanTrust Announces 1.1MSF Industrial Plan in Glendale
    • [September 5, 2025] - Construction Job Openings Up 77,000 YoY
    • [September 5, 2025] - Arizona Projects 09-05-25
    • [September 3, 2025] - TSMC Building Water Reclamation Plant
    • [September 3, 2025] - Pinal Airpark Gets OK, Funding for Air Traffic Tower
    • [September 2, 2025] - 336 Apartments Coming to Casa Grande Commons
    Facebook Twitter YouTube LinkedIn
    • Home
    • News
      1. View Latest
      2. Planning & Development
      3. Local News
      4. Classifieds
      5. Editorial Analysis
      6. Budgets & Funding
      7. Commercial Real Estate
      8. People on the Move
      9. Arizona Projects
      10. Legislation & Regulations
      11. Trends

      Major General Plan Amendments Requested for 1,800-acre Florence Area

      September 5, 2025

      Mesa Approves 29-Unit Townhome Plan

      September 5, 2025

      VanTrust Announces 1.1MSF Industrial Plan in Glendale

      September 5, 2025

      TSMC Building Water Reclamation Plant

      September 3, 2025

      HonorHealth to Build on Former Amkor Site in Vistancia

      September 2, 2025

      Buckeye City Council Discusses Annexing Land for Community Master Plan

      August 29, 2025

      Round 3 of BuildItAZ Grants Announced

      August 26, 2025

      Magazine Tackles Construction Crisis by Inspiring Teen Girls to Enter Skilled Trades

      August 22, 2025

      Scottsdale Hospitals War May Heat Up with New Banner Request

      July 29, 2025

      Glendale Voters to Determine VAI Resort’s Fate

      May 16, 2025

      Legislation Would Effectively Strip NIMBYs of Referendum Tool

      February 11, 2025

      2025 Forecast Tries to Clarify an Uncertain Market

      February 7, 2025

      RTA Funding Proposal Stirs Controversy

      August 15, 2025

      Ariz. LIHTC to Sunset Under New Budget

      July 8, 2025

      State Government Shutdown Averted as Hobbs Signs Budget

      July 1, 2025

      Arterial Life Cycle Program Covers 20 Years of Street Development

      June 27, 2025

      Commercial Real Estate 09-02-25

      September 2, 2025

      Commercial Real Estate 08-26-25

      August 26, 2025

      Commercial Real Estate 08-19-25

      August 19, 2025

      Commercial Real Estate 08-12-25

      August 12, 2025

      Industry Professionals 09-02-25

      September 2, 2025

      Industry Professionals 08-26-25

      August 26, 2025

      Industry Professionals 08-19-25

      August 19, 2025

      Industry Professionals 08-12-25

      August 12, 2025

      Arizona Projects 09-05-25

      September 5, 2025

      Arizona Projects 08-29-25

      August 29, 2025

      Arizona Projects 08-22-25

      August 22, 2025

      Arizona Projects 08-15-25

      August 15, 2025

      Environmentalists Sue ADWR Over Benson-Area Developments

      September 2, 2025

      Pima County Latest to Amend Zoning for Data Centers

      August 22, 2025

      Tucson City Council Likely to Approve Water Restriction on Large

      August 19, 2025

      Ritz-Carlton Paradise Valley Fight Could End in Foreclosure

      August 15, 2025

      Construction Job Openings Up 77,000 YoY

      September 5, 2025

      Ariz. Construction Lost 400 Jobs in July

      August 19, 2025

      Experts Share on the Latest Industrial Trends at BEX Panel

      August 15, 2025

      Multifamily Developer Confidence Up in Q2

      August 12, 2025

      Major General Plan Amendments Requested for 1,800-acre Florence Area

      September 5, 2025

      Mesa Approves 29-Unit Townhome Plan

      September 5, 2025

      VanTrust Announces 1.1MSF Industrial Plan in Glendale

      September 5, 2025

      Construction Job Openings Up 77,000 YoY

      September 5, 2025
    • AZBEX
      • Subscribe
      • Solicitations
      • Classifieds
      • Advertising
    • DATABEX
      • DATABEX Log-In
      • Webinars
      • Monthly Snapshot
    • Events
      • 2025 Hospitality LMS
      • 2025 Public Works Conference
    • About Us
      • Meet the Company
      • Meet the Sales Team
      • Meet the Editorial Team
      • Meet the BEXperts
    • CIP Special Report
    AZBEX
    Home » Trends » Phoenix #2 in Data Center Growth
    Trends

    Phoenix #2 in Data Center Growth

    BEX StaffBy BEX StaffSeptember 22, 2020No Comments3 Mins Read
    Credit: Iron Mountain
    Share
    Facebook Twitter LinkedIn Pinterest Email

    Source: JLL 
    COVID-19’s impact on public safety and stay-home orders drove significant demand for immediate digital connectivity around the world. JLL’s 2020 Mid-Year Data Center Outlook finds data centers’ resiliency and reliability established the sector as one of the few to perform strongly during the first half of the year. 
    According to the report, Phoenix ranks as a top location among all U.S. markets, performing second in the nation for year-over-year absorption, with 18.5 MW absorbed during the first half of the year. The amount of metro Phoenix data center projects under construction is also strong at 24 MW, representing a combination of speculative and build-to-suit space that ranks the market fifth in the U.S. for new build activity. 
    “These figures reflect Phoenix’s steady evolution as a national data center leader and a top pick for developers, investors and companies – including both cloud and hyper scale providers who continue to invest here,” said Mark Bauer, managing director of the JLL Data Center Solutions Group. “It’s fortunate to see data centers thriving in Phoenix, which is impressive given the year we’ve had. It shows great promise for the future of this sector in the market.” 
    Across the U.S., data center REITs produced higher returns in the first half of 2020 than office, industrial, retail, hospitality and healthcare. Additionally, three out of five data center REITs yielded at least 40 percent returns over the past year. 
    In Phoenix, data center leasing momentum has also translated to investor confidence within the capital markets.  
    According to the Phoenix JLL team, national and international data center REITs during the first half of 2020 generated a 19.2 percent return to its investors, leading all property sectors by a wide margin. “In a world that is increasingly virtual, data centers have been the proven winner in a volatile market,” said JLL Director of Capital Markets Carl Beardsley. 
    However, despite an immediate need for capacity, especially for cloud services, users and operators paused and delayed deals, generating backlogs JLL experts expect will fuel growth toward year-end and into early 2021. Year-to-date nationwide data center absorption stands at 295.2 MW, with more than half of the leading domestic markets showing an increase year-over-year. 
    The pandemic and the overall surge in data center demand globally created short-term challenges for operators and REITs alike. Migration to the cloud and greater adoption across multiple industries, thanks in large part to greater convenience, is driving unprecedented activity. The stifled pace of development and absorption is expected to accelerate once again, as those in the field identify and create new adoption strategies and solutions, putting the sector in line for a strong performance to close out the year. 
    Rent compression and increased competition within the U.S. has also pushed operators to expand into international markets, resulting in robust M&A activity globally to start the year. Experts anticipate operators will continue to expand services and increase capacity in favorable global regions including Western Europe, South America and Asia. 

    Absorption Carl Beardsley Commercial Real Estate coronavirus COVID-19 CRE Data Center Industrial JLL JLL Data Center Solutions Group Mark Bauer office pandemic REIT rent compression
    Share. Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Tumblr Email

    Related Posts

    Major General Plan Amendments Requested for 1,800-acre Florence Area

    September 5, 2025

    VanTrust Announces 1.1MSF Industrial Plan in Glendale

    September 5, 2025

    Construction Job Openings Up 77,000 YoY

    September 5, 2025

    Leave A Reply Cancel Reply

    You must be logged in to post a comment.

    Our Picks

    Major General Plan Amendments Requested for 1,800-acre Florence Area

    September 5, 2025

    Mesa Approves 29-Unit Townhome Plan

    September 5, 2025

    VanTrust Announces 1.1MSF Industrial Plan in Glendale

    September 5, 2025

    Construction Job Openings Up 77,000 YoY

    September 5, 2025
    Stay In Touch
    • Facebook
    • Twitter
    • LinkedIn
    • YouTube
    Don't Miss
    Planning & Development

    Major General Plan Amendments Requested for 1,800-acre Florence Area

    September 5, 20250

    By Roland Murphy for AZBEX The Florence Planning and Zoning Commission will hold the first…

    Mesa Approves 29-Unit Townhome Plan

    September 5, 2025

    VanTrust Announces 1.1MSF Industrial Plan in Glendale

    September 5, 2025

    Construction Job Openings Up 77,000 YoY

    September 5, 2025

    BEX serves architecture, engineering and construction firms as well as all the ancillary product and service categories that market to them. These include manufacturing representatives, public agencies and private real estate organizations, specialty subcontractors and services providers related to our industry.

    Our Picks

    Major General Plan Amendments Requested for 1,800-acre Florence Area

    September 5, 2025

    Mesa Approves 29-Unit Townhome Plan

    September 5, 2025

    VanTrust Announces 1.1MSF Industrial Plan in Glendale

    September 5, 2025
    Contact Us

    Phone: 480-709-4190
    Address: P.O. Box 12196 Tempe, AZ 85284
    Email: sales@azbex.com

    Type above and press Enter to search. Press Esc to cancel.