Ranked by most analysts as fourth in the nation based on size and activity, Phoenix is one of the most dynamic and rapidly growing data center markets in the country, which has attracted cloud, eCommerce, financial services, healthcare, technology, and telecom companies, among others.
Phoenix is located proximally enough to major urban centers, including Los Angeles and the West Coast, for data centers to deliver IT and digital services without significant latency. Cloud service providers, hyperscalers and large enterprises like the Phoenix region because its operating and energy costs are comparatively low and natural disasters are uncommon.
Offering 100% uptime SLA support and an industry-leading guaranteed 1.15 PUE (Power Usage Efficiency), the Aligned Data Centers - Phoenix 01/02/03 data center was completed in 2017 and inhabits a 55-acre campus, which also includes the company's nearby Phoenix 05 data center.
In 2018, a 200,000-square-foot Phase II expansion was announced at the original 51-acre, 550,000-square-foot, 120 MW Aligned campus in Phoenix. As situated at 2500 W Union Hills, the addition of Phase II was implemented to accommodate 60 MW more power at full build-out.
DCF's tour guides at the Aligned Data Centers PHX-01 site were Phill Lawson-Shanks, Chief Innovation Officer for Aligned Data Centers, and Jarod Patton, Senior Director, Operations for Aligned in Phoenix.
Our tour of the flagship Aligned Data Centers - Phoenix facility provided a fascinating insight into modern data center operations, blending as it does principles of historical data center adaptive reuse along with innovative use of cutting-edge technologies.
Ultimately, the tour offered a detailed look at the site's arc of technological transformation, energy efficiency strategies, cooling advancements, and future-focused power solutions, all while emphasizing Aligned’s dedication to operational excellence and environmental responsibility.
Overview of Live Data Center Operations
As explained by Lawson-Shanks, originally built as a DEC factory for dot matrix printers, the Phoenix site has undergone a remarkable conversion.
“The building used to be originally a DEC factory for dot matrix printers. There’s three buildings under one roof. We built it as a brownfield and converted it.”
Patton noted that this adaptive reuse approach not only preserved the existing structure, but also allowed the company to design efficient systems tailored to its operational needs.
The tour began with an overview of live data center operations, emphasizing safety and inviting questions throughout. I was advised by Patton to “keep your hands down to your sides” while navigating areas of the facility with varying temperatures, the better to safely experience the full spectrum of cooling technologies in action.
Patton elaborated on the evolution of the data center's cooling systems. “This would be one of our original data halls that we actually first opened up with." As we observed elements of the cooling system, he explained, "This is refrigerant-based cooling with a chilled water DX unit that’s attached for expulsion up to the roof of the chiller systems.”
Power Requirements and Cooling Advancements
The tour highlighted the campus founders’ vision for high-density computing, designed to support up to 40 or 50 kilowatts (kW) of cabinet power. This necessitated innovative cooling and pressure management solutions.
“The biggest thing with cooling is the pressure," pointed out Lawson-Shanks. "It’s the static pressure drop. It’s how you manage the pressure between here and in there. Everything’s reliant on that."
The modularity of the facility's equipment is also cited as key to scalability, with standardized electrical switchgear and UPS units housed in containers deployed in blocks of 12 across the site.
Cooling technology at the Aligned Phoenix data center has evolved significantly, with a focus on turbine systems for greater efficiency.
“Turbines instead of a fan are critically important, because a fan would just be flowing air through," noted Lawson-Shanks. "We want the volume of air running at a slower velocity so that it passes through and has more time to absorb the heat. Hence the higher Delta T up to 45 degrees. Most systems get about 3 to 7 degrees of heat exchange,” he added.
Where Energy Efficiency Meets Cost Reduction
Energy efficiency is a cornerstone of Aligned’s strategy, with initiatives aimed at minimizing energy use while maximizing cooling effectiveness. “It’s all about maximizing cooling, minimizing the energy,” Lawson-Shanks stated.
Advanced technologies, such as QR codes for equipment maintenance, streamline operations and ensure accountability. “Most of our devices will all have QR codes," explained Patton. "A lot of our maintenance and everything that we’re doing is all going to be QR-based. Operations would scan that and pull up any kind of work document or anything that needs to happen on that piece of equipment."
The company’s focus on cost reduction and dynamic cooling systems has also driven innovation. Lawson-Shanks describes a transition to more efficient motors and dynamic cooling: “With this turbine…we’ve changed to a different engine as well, a motor, which is a new PCB printed motor. So it’s even more efficient, has more longevity, and less energy usage.”
Walking through the the facility and viewing more of its equipment, I learn how PHX-01's dynamic systems monitor heat generation in real-time and adjust cooling accordingly. “These systems would detect the heat being generated, and then our cooling system would slow down a bit because we didn’t need to cool it so much. And then when it detects the heat, it would spin back again. So it’s totally dynamic and closely coupled to the load,” explained Lawson-Shanks.
Innovation Highlights
PHX-01's sustainability bona fides are further underscored by Aligned’s device tracking and recycling processes. The aforementioned QR codes on the facility's equipment provide detailed information about each device’s specifications, when end-of-life components are disassembled and repurposed.
“When this is going end of life, we can determine how much copper, aluminum, steel, and if there’s anything that can have a second life, we appropriately disassemble and give it to an ITAD or something like that to reuse the components,” Lawson-Shanks explained.
Talk turns to how Aligned’s commitment to innovation also extends to energy storage and emerging battery technologies. The company has adopted Lithium-Ion technology and is exploring alternatives such as sodium batteries. “We switched to Lithium-Ion from the very beginning. With lithium, titanate oxide... we can have the cells smaller, closer together, but still be lithium,” Lawson-Shanks remarked.
He also highlights the potential of Prussian blue-type sodium ion batteries for their longevity, such as those provided by Natron Energy: “We’re looking at some interesting sodium batteries coming up... particularly the Prussian blue type," he said. "It’s heavier, but the cycle time and longevity are key.”
Looking Toward the Future
The tour concludes with a discussion on future power utility expansions for the campus, with utility provider Arizona Public Service (APS) currently building additional infrastructure to support the facility.
“APS is expanding it for us. They’re in the process of building the yard right now and then they’ll start dropping gear. By Q1, Q2 of next year, we should be online with APS,” Patton stated.
Overall, Aligned Data Centers’ Phoenix data center campus exemplifies a forward-thinking approach to facility design and operation, balancing historical preservation with technological innovation. Through adaptive reuse, energy efficiency, and sustainability initiatives, the company sets a benchmark for the industry while preparing for the future of high-density computing.
Following the tour, DCF was invited to ask follow-up questions and continue the conversation informally, reflecting the company’s approachable and collaborative ethos.
Conversation with Aligned Data Centers CIO Phill Lawson-Shanks
Data Center Frontier's correspondent and Aligned Data Centers Chief Innovation Officer Phill Lawson-Shanks then repaired to one of the site's spacious conference rooms for conversation on cutting-edge trends shaping today's data center industry, where Phill shared his insights into sustainability, technological challenges with AI, and community-focused initiatives.
Evolution of Hyperscalers and Sustainability
Phill began by highlighting the proactive steps Aligned Data Centers has taken to stay ahead in the hyperscale game. "Several years ago, we started pre-buying our long-lead items like generators and switchgear," he explained. “We now have one and a half gigawatts in inventory. To put that in perspective, that's 22 miles of generators.”
This forward-thinking approach allows the company to maintain a competitive edge, deploying an impressive 20 megawatts of capacity each month. "We're running at about a million man-hours of construction every month," Phill added, underscoring the speed and scale of their operations.
Sustainability is also a focal point. Phill described Aligned's efforts to reduce embodied carbon by using innovative materials like green concrete and reducing Portland cement content. "We're constantly looking at materials," he noted. "We're even exploring solutions like Blue Planet, which creates limestone from CO2 to incorporate back into concrete."
He also noted that Aligned's commitment to sustainability also extends to exploring alternative fuels like natural gas and hydrogen to power operations more cleanly.
Data Center Builds and GPU Clusters
As the discussion shifted to data center builds, Phill emphasized Aligned's adaptability to client needs. "Our speed of build has been a competitive advantage," he stated. This agility includes deploying modular systems like 6-megawatt data halls and exploring new technologies, such as 3D printing of concrete.
The conversation turned to the burgeoning importance of GPU clusters for AI infrastructure, with Phill highlighting the data center industry's transition to liquid cooling. "Clients are increasingly moving to GPU clusters. We're collaborating with Nvidia, Intel, and others to stay ahead of this technological shift," he stated.
He mentioned how one of Aligned Data Centers' Chicago facilities holds the distinction of being the first OCP-certified hyperscale data center, a testament to the growing role of open standards.
Liquid Cooling and Standardization Efforts
Phill also elaborated on the advantages of liquid cooling and the role of OCP [Open Compute Project] standards in driving industry collaboration.
"The benefit of OCP is that it allows multiple companies to work together to build standardized racks, simplifying processes and reducing costs," he explained. The rising attendance at OCP events—up from 3,500 to 7,500 attendees this year—illustrates the consortium's growing momentum.
However, Phill also stressed that every data center design depends on use cases. "The client’s application dictates everything—the hardware structure, building type, and even the location," he said, pointing out that some applications require proximity to municipalities for low latency, while others benefit from rural areas with cheaper power.
Challenges with Advanced Technology and Recycling Operations
Advanced technologies like liquid cooling and high-power GPU clusters come with their own challenges. Phill described the necessity of arc flash suits for safety and the increasing reliance on robotics for tasks like chip replacement. "Google has been discussing robotics for chip handling because human errors are leading to defects," he stated.
Phill also envisions a future where chips, like Nvidia’s H100s, are repurposed for second or third applications. "There’s potential for tightly coupled CPU-GPU architectures like Grace Hopper chips to run sequential and parallel processes efficiently," he suggested. He noted how innovations in robotics are already reshaping the industry, with Meta utilizing robotic systems to disassemble servers for recycling—a collaboration Phill cited as a game-changer.
The conversation naturally transitioned to server recycling, with Phill highlighting the process for Meta’s servers. "They disassemble the servers robotically, destroy data on hard drives, and repurpose components like magnets and chassis," he explained. He noted this circular approach aligns perfectly with Aligned’s ethos of sustainability.
Diversity and Community Engagement Initiatives
Our conversation shifted gears to discuss Aligned’s diversity and community initiatives. "We work closely with STEM schools and plant orchards in every market we operate in," Phill shared. He said these orchards, coupled with partnerships with local food banks, reflect Aligned Data Centers' commitment to sustainability and community engagement.
He recounted a success story of a former barista who, through Aligned’s training programs, rose to lead a campus in Salt Lake City. "Our biggest challenge," Phill admitted, "Is that our clients often poach our people because we train them so well. But that’s a good problem to have—we’re seeding talent into the industry."
Nuclear Segue
Our discussion concluded with a focus on workforce challenges but not before a segue into nuclear technology and data centers.
Phill underscored the need to attract younger workers to the data center industry as the older generation retires. "We’ve taken a lot of Navy nuclear submariners into our workforce," he said, likening the critical thinking required in data center operations to running a submarine.
As the visit wound down, talk touched on the potential of microreactors and small modular reactors (SMRs) as future data center power sources. Emphasizing how design considerations play a vital role in safety, Phill concluded, "SMRs, like Oklo’s designs, are incredibly safe. You could hug one for a year and get less radiation than flying across the country."
Matt Vincent
A B2B technology journalist and editor with more than two decades of experience, Matt Vincent is Editor in Chief of Data Center Frontier.
