Phoenix Data Center Market

Phoenix

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Phoenix has historically drawn data center operator’s looking for an alternative to California’s higher costs and natural disaster risks, but today the market is a destination in its own right. DCF, in conjunction with Digital Realty, presents a comprehensive overview of the Phoenix data center market.

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The Phoenix data center market is one of the most dynamic in the U.S. and is among the top five in terms of capacity. Phoenix has historically drawn data center operator’s looking for an alternative to California’s higher costs and natural disaster risks, but today the market is a destination in its own right.

The region’s low power costs, low threat for natural disasters, and free cooling at night are all advantages developers see in the greater Phoenix area, which has expanded to include the cities of Chandler, Mesa and Goodyear.

Phoenix Data Center Market Attributes
Phoenix attracts data center users for the following reasons:

  • Low Natural Disaster Risk — The city has almost no history of damage associated with seismic, tornado, and flooding events
  • Inexpensive Power Cost — A diverse fuel mix and competition from several power providers create a reliable and competitive power environment
  • Tax Abatement Opportunities — Legislation passed in 2013 enhances the state’s ability to compete on large, national data center requirements
  • 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 Digital Realty, continues Data Center Frontier’s market coverage of growing data center hubs. Explore further for a comprehensive overview of the data center market in Phoenix.