2021 Overview of the Phoenix Data Center Market

Phoenix has established itself as a major market for cloud computing, and nearly every major hyperscale platform and wholesale data center developer has lined up land for future capacity in Greater Phoenix.

The region is positioned for continued data center expansion, and the pace and location of that growth will be guided by deployment trends for large customers, especially regarding how they position their capacity and availability zones.

What’s hot about Phoenix? 

Phoenix offers data center customers and site selectors users a combination of compelling benefits. These include: 

1. Low Natural Disaster Risk The city has almost no history of damage associated with seismic, tornado, and flooding events 

2. Inexpensive Power Cost A diverse fuel mix and competition from several power providers create a reliable and competitive power environment 

3. Tax Abatement Opportunities Legislation passed in 2013 enhances the state’s ability to compete on large, national data center requirements. Arizona offers a 10-year wavier on state, county, and local sales taxes on both equipment purchases and labor services for data centers. 

4. Competitive Colocation/Cloud Environment Quality colocation and cloud providers have invested significantly in Phoenix over the past few years, creating a competitive market for data center users. 

This report, in conjunction with NTT, continues Data Center Frontier’s market coverage of growing data center hubs. Explore further for a comperhensive overview of the Phoenix data center market.