What's Hot

    Split Vote Complicates Plans for VAI Resort

    May 28, 2025

    Safford Approves 165-Unit Multifamily Development

    May 28, 2025

    JDM Proposal Reimagines Biltmore Infill Project

    May 27, 2025
    Facebook Twitter Instagram
    AZBEX
    NEWS TICKER
    • [May 28, 2025] - Split Vote Complicates Plans for VAI Resort
    • [May 28, 2025] - Safford Approves 165-Unit Multifamily Development
    • [May 27, 2025] - JDM Proposal Reimagines Biltmore Infill Project
    • [May 27, 2025] - $500M Whiteriver Hospital Preparations Advancing
    • [May 27, 2025] - Peoria Council Approves $1.9B 10-Year CIP
    • [May 27, 2025] - Industry Professionals 05-27-25
    • [May 27, 2025] - Commercial Real Estate 05-27-25
    • [May 23, 2025] - Laveen Towne Center Plan Advances, Expands
    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

      Split Vote Complicates Plans for VAI Resort

      May 28, 2025

      Safford Approves 165-Unit Multifamily Development

      May 28, 2025

      JDM Proposal Reimagines Biltmore Infill Project

      May 27, 2025

      $500M Whiteriver Hospital Preparations Advancing

      May 27, 2025

      EdgeCore 44-Acre Mesa Land Buy Sets Up Massive Expansion

      May 23, 2025

      Ariz. Construction Added 2,400 Jobs in April

      May 21, 2025

      Phoenix Considering Data Center Development Restrictions

      May 21, 2025

      City Engineers Stress Collaboration, Adaptability at BEX Public Projects Event

      May 16, 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

      KOREPlex Buckeye Site Quietly Listed For Sale

      January 31, 2025

      Peoria Council Approves $1.9B 10-Year CIP

      May 27, 2025

      Scottsdale Water Needs $50M for ‘Toilet to Taps’

      May 9, 2025

      Phoenix Releases $11.5B, 5-Year CIP with Nearly 1,000 Projects

      April 1, 2025

      Buckeye Starts Planning Bond Funding Outlays

      February 26, 2025

      Commercial Real Estate 05-27-25

      May 27, 2025

      Commercial Real Estate 05-20-25

      May 21, 2025

      Commercial Real Estate 05-13-25

      May 13, 2025

      Commercial Real Estate 05-06-25

      May 6, 2025

      Industry Professionals 05-27-25

      May 27, 2025

      Industry Professionals 05-20-25

      May 21, 2025

      Industry Professionals 05-13-25

      May 13, 2025

      Industry Professionals 05-06-25

      May 6, 2025

      Arizona Projects 05-23-25

      May 23, 2025

      Arizona Projects 05-16-25

      May 16, 2025

      Arizona Projects 05-09-25

      May 9, 2025

      Arizona Projects 05-02-25

      May 2, 2025

      Phoenix Considering Data Center Development Restrictions

      May 21, 2025

      Glendale Voters to Determine VAI Resort’s Fate

      May 16, 2025

      Executive Order Will Streamline Federal Acquisition Regulations System

      April 26, 2025

      Legislation to Save Axon Plan Continues to Advance

      April 16, 2025

      Ariz. Construction Added 2,400 Jobs in April

      May 21, 2025

      Backlogs, Confidence Increase in April

      May 16, 2025

      Multifamily Developer Confidence Down in Q1

      May 13, 2025

      U.S. Construction Added 11,000 Jobs in April

      May 6, 2025

      Split Vote Complicates Plans for VAI Resort

      May 28, 2025

      Safford Approves 165-Unit Multifamily Development

      May 28, 2025

      JDM Proposal Reimagines Biltmore Infill Project

      May 27, 2025

      $500M Whiteriver Hospital Preparations Advancing

      May 27, 2025
    • AZBEX
      • Subscribe
      • Classifieds
      • Advertising
    • DATABEX
      • Webinars
      • Monthly Snapshot
    • Events
      • Housing Projects on the Horizon
    • About Us
      • Meet the Company
      • Meet the Sales Team
      • Meet the Editorial Team
      • Meet the BEXperts
    AZBEX
    Home » Trends » Phoenix Market Continuing Rapid Data Center Expansion
    Trends

    Phoenix Market Continuing Rapid Data Center Expansion

    BEX StaffBy BEX StaffSeptember 10, 2024No Comments3 Mins Read
    Credit: DataBank
    Share
    Facebook Twitter LinkedIn Pinterest Email

    By CJ Jorgensen for AZBEX

    Phoenix is continuing its rapid expansion in the data center market, becoming a primary data center hotspot of the West.

    Information in the “Americas Data Center H1 2024 Update” released last week by Cushman & Wakefield, shows Phoenix has seen a rapid expansion of absorption within the past two years, having reached 411MW in 2022 and 600MW in 2023. Phoenix saw slightly more absorption in the first half of 2023, but this is likely due to limitations on the delivery of supply.

    Phoenix’s absorption in the first half of 2024 was 126MW with 367MW under construction. Phoenix has 957MW in operation with a colocation vacancy rate of 1.3%.

    Hyperscalers and colocation providers have been eagerly assessing land sites across the Valley. Both veteran providers and newer prospects are digging their roots deeper into the Phoenix area.

    Phoenix itself is in a unique environment that propels the process of becoming the West’s data center hotspot. “Phoenix’s location offers a distinct advantage by providing low latency connectivity from major tech metros on the West Coast to fast-growing markets in the Southwest,” Cushman & Wakefield reports. “With tight vacancy and many options when it comes to providers, Phoenix has quickly become the central data center hub along the West Coast”

    A specific issue for Phoenix-area data center development is the availability of water. Water-cooling technology is one of the most efficient ways to cool high temperatures from intensive AI/HPC workloads. Both state and local governments have tried to combat water overuse by incentivizing the use of air-cooling technologies.

    Energy is another benefit Phoenix brings to the table, notably renewable energy. While Phoenix already has an established power grid consisting of 52% natural gas and 45% nuclear, private solar panels have become increasingly prevalent.

    Even with the increase of available power sources, it continues to be an ongoing and significant issue in the expansion and creation of more data centers. This, however, is not exclusively limited to Phoenix, as it is one of the more common challenges data center developers are facing.

    As was discussed in the 2024 BEX Private Development Summit last month, utility providers Arizona Public Service and Salt River Project are working closely with customer firms across all markets—but most specifically data centers—to correctly assess and develop supply and delivery plans for current and projected future needs. (AZBEX, Aug. 9)

    While there are considerable limitations and obstacles, Cushman & Wakefieldis strongly positive about Phoenix’s momentum.

    Phoenix’s Place in the North American Market

    Overall, Phoenix is third in the country regarding overall stock levels with 2.9GW, which is about 15.7% of North America’s 18.5GW of operational capacity. Virginia holds the lead by a significant margin, carrying 13.2GW, or about 71.4%.

    Phoenix directly follows Atlanta’s 3.8GW in the data collected by C&W and is ahead of Chicago’s 2.4GW and Dallas’ 2.3GW.

    Dallas’ numbers in the first half of 2024 were quite similar to Phoenix’s. Dallas saw a slight edge in both absorption (163MW) and capacity under construction (637.5MW), but it also saw a colocation vacancy rate of 1.4%. Dallas’ operation number trailed at 848MW.

    Dallas’ 2023 absorption rates were just less than two-thirds of Phoenix’s, coming in at 386MW.

    Other western areas seeing an expansion are Portland + Eastern Oregon, Reno and Salt Lake City.

    2024 2024 BEX Private Development Summit Absorption air-cooling APS Arizona Public Service Atlanta colocation Cushman & Wakefield Dallas Data Center energy Expansion hyperscaler low latency connectivity market Natural Gas nuclear Phoenix Portland power delivery power demand Reno Salt Lake City Salt River Project solar panels SRP trends Virginia Water West Coast
    Share. Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Tumblr Email

    Related Posts

    EdgeCore 44-Acre Mesa Land Buy Sets Up Massive Expansion

    May 23, 2025

    Ariz. Construction Added 2,400 Jobs in April

    May 21, 2025

    Backlogs, Confidence Increase in April

    May 16, 2025

    Leave A Reply Cancel Reply

    You must be logged in to post a comment.

    Our Picks

    Split Vote Complicates Plans for VAI Resort

    May 28, 2025

    Safford Approves 165-Unit Multifamily Development

    May 28, 2025

    JDM Proposal Reimagines Biltmore Infill Project

    May 27, 2025

    $500M Whiteriver Hospital Preparations Advancing

    May 27, 2025
    Stay In Touch
    • Facebook
    • Twitter
    • LinkedIn
    • YouTube
    Don't Miss
    Planning & Development

    Split Vote Complicates Plans for VAI Resort

    May 28, 20250

    By BEX Staff for AZBEX Unofficial election results show Glendale voters apparently casting a split…

    Safford Approves 165-Unit Multifamily Development

    May 28, 2025

    JDM Proposal Reimagines Biltmore Infill Project

    May 27, 2025

    $500M Whiteriver Hospital Preparations Advancing

    May 27, 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

    Split Vote Complicates Plans for VAI Resort

    May 28, 2025

    Safford Approves 165-Unit Multifamily Development

    May 28, 2025

    JDM Proposal Reimagines Biltmore Infill Project

    May 27, 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.