Phoenix City approves $1b data center campus
The Phoenix City Council has approved plans for a $1 billion data center campus.
QTS Data Centers, a subsidiary of QTS Realty Trust, purchased the 84 acres in July, according to The Phoenix Business Journal.
Other major data center campuses in the state include Apple, which has a campus in Mesa, and Amazon, which has its campus in Tempe. And the Phoenix data center market continued its steady growth in the first half of 2017, according to CBRE. Driven by growth in both hyperscale and enterprise infrastructure deployments, the Phoenix data center market remains one of the most diverse primary markets in the country, and has the potential to become one of the leading data center destinations in the United States.
“Phoenix is a dynamic market,” said Luke Denmon, leader of CBRE’s Data Center Solutions Practice in Phoenix. “Every 18 months or so we see our supply profile change in direct response to demands from different segments within the data center universe. When avoiding natural disasters was the driving force, Phoenix’s data center market grew. Now, the drivers are tied to Phoenix’s lower operating costs and strong regional network infrastructure compared to other markets and Phoenix is still growing. These are signals that the market has matured to a point at which we can shift to accommodate the various nuances of the different user profiles.”
Investment in the U.S. data center sector reached record levels in the first half of 2017, totaling $18.2 billion, already more than double that for all of 2016 (inclusive of all single-asset, portfolio and entity-level/M&A transactions). At this pace, investment in the data center sector is on track to surpass the total for the three previous years combined.
