Stream Data Centers Plans Massive Phoenix Campus

Stream Data Centers has acquired land for a major data center campus in Goodyear, Arizona, becoming the latest data center provider to expand in the red-hot Phoenix market.

The project marks Stream’s entry into the Phoenix market, and continues a strategic focus on the hyperscale data center market. Stream has bought 157 acres of land, which includes an existing structure that will be converted into a 418,000 square foot data center with up to 50 megawatts of power.

At full buildout, the property can support up to 2 million square feet of data centers, including room for a new substation from Arizona Public Service Electric Company (APS) that can bring the site’s power capacity of 350 megawatts.

“The Phoenix market has quickly emerged as one of the top destinations in the Western US for enterprise and cloud companies,” said Robert Kennedy, co-managing partner of Stream Data Centers. “A pro-business environment with a great sales tax incentive program, low risk of natural disaster and low latency to major markets on the West Coast, Midwest and Texas have fueled tremendous growth for this market. We look forward to establishing a major campus and long-term relationship with Goodyear, APS and the Greater Phoenix region.”

Data Center Neighbors

It’s been a good year for Goodyear, a town of about 80,000 located about 17 miles west of Downtown Phoenix. Stream’s project is the third data center announced in Goodyear in 2019. Here’s a look at the previous announcements:

• Vantage Data Centers has acquired 50 acres of land in Goodyear to build a hyperscale data center campus, featuring 1 million square feet of data centers and 160 megawatts of capacity.
• Compass Datacenters has acquired more than 200 acres of land in Goodyear, Arizona, where it has capacity to build up to 350 megawatts of data center capacity.

The Phoenix data center market is experiencing an extraordinary building boom. Stream, Compass and Vantage join a large and growing group of data center providers deploying new capacity in the Phoenix region, with plans for more 1 gigawatt of future capacity (more than any market except Northern Virginia).

The development boom in Goodyear marks an expansion of the data center geography of Phoenix, creating a new submarket to the west of the city. Previously, submarkets have focused on the area Southeast of Phoenix, first in Chandler (Digital Realty, CyrusOne, H5, eBay) and more recently in Mesa (EdgeCore, Apple, CyrusOne).

A New SubMarket Emerges

Now, in a matter of months, a third significant submarket has emerged, with 82 megawatts of data center capacity in capacity scheduled to come online as soon as 2020, and a total of 860 megawatts in the planning stage.

“Stream Data Centers’ confidence and investment into the Goodyear market will provide high-end jobs and innovative cloud-based technology solutions for years to come,” said Mayor Georgia Lord. “We are very excited to welcome another best-in-class company to our rapidly expanding cluster of high-tech businesses. We are thankful for their commitment to Goodyear and foresee a bright future ahead.”

Stream is an experienced player in data center real estate, and has built a strong business delivering facilities for enterprises and service providers. The Dallas-based company sees an opportunity in building multi-facility developments where large technology companies deploy tens of thousands of servers.

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Stream Data Centers is a unit of Stream Realty, a large commercial real estate firm that has been an active developer and investor in the data center industry since 1999. Stream has developed more than 3 million square feet of data center space, representing more than 200 megawatts of power capacity.

Over the years, Stream Data Centers has proven adept at identifying trends in the data center market and creating new products to target growth sectors. The company’s initial focus was powered shell projects, featuring undeveloped space, with the power and fiber connectivity already in place. Stream’s customers included marquee names like Apple, Home Depot, AT&T, Sprint and Nokia.

In 2010 Stream Data Centers began developing private data centers, delivering finished turn-key facilities. It has built, leased and sold data centers in San Antonio, Dallas, Houston and Minneapolis. Its most recent project is a $250 million, 56,000 square foot Minneapolis data center for US Bank. Other private data centers built by Stream have been acquired by Databank and Zayo. In 2017 the company announced plans to expand its focus to the hyperscale data center market.