Phoenix Data Center Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Phoenix Data Center Market is Segmented by DC Size (Small, Medium, Large, Massive, Mega), Tier Type (Tier 1&2, Tier 3, Tier 4), Absorption (Utilized (Colocation Type (Retail, Wholesale, Hyperscale), End User ( Cloud & IT, Telecom, Media & Entertainment, Government, BFSI, Manufacturing, E-Commerce)), and Non-Utilized). The Market Sizes and Forecasts are Provided in Terms of Value (MW) for all the Above Segments.

Phoenix Data Center Market Size

Compare market size and growth of Phoenix Data Center Market with other markets in Technology, Media and Telecom Industry

Phoenix Data Center Market Analysis

The Phoenix Data Center Market size is estimated at 0.85 megawatt in 2025, and is expected to reach 1.99 megawatt by 2030, at a CAGR of 18.5% during the forecast period (2025-2030).

A data center is a specific area inside a structure or a collection of designs that house computer systems and related equipment, such as networking and storage systems.

  • Greater Phoenix is an appealing location for data center development. The region's steady electricity supply and minimal proclivity for natural calamities translate into user dependability. Service stability and continuity are critical for enterprises where interruptions can cost millions of dollars or risk lives depending on the operation.
  • Phoenix rounded out the top five, with USD 482 million in sales during the decade under consideration. Across the deals we looked at, data center space traded in the market totaled 3.2 million square feet. Notably, the Arizona market has been a popular choice for investors seeking an alternative to California. Phoenix has become a data center destination in its own right for operators wishing to construct a hub that serves the West Coast, with significantly reduced development and operational costs, tax benefits, and relatively lower disaster risk.
  • Increased investor interest in data centers is driven by a strong desire for data, propelled by continuous development in cloud computing and social media and the introduction of new technologies such as 5G and driverless vehicles. Greater Phoenix has seen increased data center development for various reasons, including improved data demand.
  • Real estate prices in Phoenix have surged due to scarcity of adequate land, increased demand from other businesses, and zoning constraints. As a result, land and construction costs have risen significantly, making it harder for data center operators to obtain a satisfactory return on investment.
  • However, the pandemic resulted in higher network and internet traffic as a result of the work-from-home culture, more internet-based activities, and social media usage. While timelines and schedules are shrinking, data center projects are growing.

Rising Adoption of Hyperscale Data Centers

  • The rising adoption of hyperscale data centers is a significant driver of the data center construction market. Hyperscale data centers are large-scale facilities that are designed to support the massive amounts of data processing and storage required by modern businesses and organizations.
  • For instance, in May 2023, As Prime Data Centres prepares to build its first facilities in the market, new hyperscale data centers are heading to metro Phoenix. The business intends to invest $2 billion in constructing a 210-megawatt, five-building campus in Avondale, Arizona, spanning 1.3 million square feet.
  • Further, Aligned Data Centres, a leading technology infrastructure company providing innovative, sustainable, and adaptive Scale Data Centres and Build-to-Scale solutions to global hyperscale and enterprise customers, announces its planned development of PHX-05, a new data center on its flagship hyperscale campus in Arizona. The greenfield deployment is expected to match an aggressive construction timeframe in response to increased capacity demands and hyperscalers in the greater Phoenix region's interest in Aligned's intelligent and adaptable infrastructure solutions.
  • The deployment of hyperscale data centers will likely increase in the future years, fuelling data center demand. This is a substantial potential for firms and investors looking to enter the data center sector, particularly in locations where cloud-based services and applications are in high demand.

Phoenix Data Center Industry Overview

The Phoenix Data Center Market is fragmented in that key vendors are utilizing inorganic growth techniques, such as mergers and acquisitions and strategic partnerships, to increase their market share. Some of the players as Digital Realty Trust, Inc., DataBank, Cyrus One, Cyxtera Technologies, Inc., and Cogent.

In May 2023, as Prime Data Centres prepares to build its first facilities in the market, new hyperscale data centers are heading to metro Phoenix. The business intends to invest $2 billion in constructing a 210-megawatt, five-building campus in Avondale, Arizona, spanning 1.3 million square feet. The first facility, which will offer 42 megawatts of vital IT power, is scheduled to open in the third quarter of 2025.

Also May 2023, QTS commenced building on its PHX2 DC5 data center in Phoenix, Arizona. The company reportedly broke ground on the plant in March; it would stretch 337,330 sq ft (31,339 sqm) on 85 acres and have a capacity of 42 MW. This is the first of a projected 280MW+ multi-building campus of data centers.

Phoenix Data Center Market Leaders

  1. Digital Realty Trust, Inc.

  2. DataBank

  3. CyrusOne

  4. Cyxtera Technologies, Inc.

  5. Cogent

  6. *Disclaimer: Major Players sorted in no particular order
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Phoenix Data Center Market News

  • June 2024 - Microsoft has acquired more than 280 acres in the El Mirage area of Phoenix, Arizona. Microsoft purchased the additional property in El Mirage to support data center construction that's already underway in the area, Bowen Wallace, corporate vice president for Microsoft Datacenters and Americas, said in a statement to BJ.
  • March 2024 - Metro Phoenix prevails as the second-largest data center market in the nation, Bolstered by its availability and affordability of power, and its available land for new development, the market during the second half of 2023 completed leases for 748MW of new data center capacity and has 2.8 million square feet (703MW) of capacity under construction. This ranks second only to national data center leader Northern Virginia, with 1.6GW of transactions completed during the same time period and more than 13 million square feet (1,339MW) under construction.

Phoenix Data Center Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. KEY INDUSTRY TRENDS

  • 4.1 Smartphone Users
  • 4.2 Data Traffic per Smartphone
  • 4.3 Mobile Data Speed
  • 4.4 Broadband Data Speed
  • 4.5 Regulatory Framework
  • 4.6 Value Chain Analysis

5. MARKET OUTLOOK

  • 5.1 IT Load Capacity
  • 5.2 Raised Floor Space
  • 5.3 Number of Racks

6. MARKET SEGMENTATION

  • 6.1 By DC Size
    • 6.1.1 Small
    • 6.1.2 Medium
    • 6.1.3 Large
    • 6.1.4 Massive
    • 6.1.5 Mega
  • 6.2 By Tier Type
    • 6.2.1 Tier 1 & 2
    • 6.2.2 Tier 3
    • 6.2.3 Tier 4
  • 6.3 By Absorption
    • 6.3.1 Utilized
    • 6.3.1.1 By Colocation Type
    • 6.3.1.1.1 Retail
    • 6.3.1.1.2 Wholesale
    • 6.3.1.1.3 Hyperscale
    • 6.3.1.2 By End User
    • 6.3.1.2.1 Cloud & IT
    • 6.3.1.2.2 Telecom
    • 6.3.1.2.3 Media & Entertainment
    • 6.3.1.2.4 Government
    • 6.3.1.2.5 BFSI
    • 6.3.1.2.6 Manufacturing
    • 6.3.1.2.7 E-Commerce
    • 6.3.1.2.8 Other End User
    • 6.3.2 Non-Utilized

7. COMPETITVE LANDSCAPE

  • 7.1 Company Profiles*
    • 7.1.1 Digital Realty Trust, Inc.
    • 7.1.2 DataBank
    • 7.1.3 PhoenixNAP
    • 7.1.4 CyrusOne
    • 7.1.5 Cyxtera Technologies, Inc.
    • 7.1.6 Vantage Data Center
    • 7.1.7 Iron Mountain
    • 7.1.8 Cyxtera Technologies, Inc.
    • 7.1.9 Expedient
    • 7.1.10 Evocative
    • 7.1.11 Flexential
    • 7.1.12 Evoque
    • 7.1.13 H5 Data centers
    • 7.1.14 Cogent
    • 7.1.15 EdgeCore
    • 7.1.16 EdgeConneX, Inc.
  • 7.2 Market share analysis (In terms of MW)
  • 7.3 List of Companies
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Phoenix Data Center Industry Segmentation

A data center is a physical room, building, or facility that holds IT infrastructure used to construct, run, and provide applications and services and store and manage the data connected with those applications and services.

The Phoenix Data Center Market is segmented by DC size (small, medium, large, massive, mega), tier type (tier 1&2, tier 3, tier 4), absorption (utilized [colocation type [retail, wholesale, hyperscale], end user [cloud & IT, telecom, media & entertainment, government, BFSI, manufacturing, e-commerce]), and non-utilized). The market sizes and forecasts are provided in terms of value (MW) for all the above segments.

By DC Size Small
Medium
Large
Massive
Mega
By Tier Type Tier 1 & 2
Tier 3
Tier 4
By Absorption Utilized By Colocation Type Retail
Wholesale
Hyperscale
By End User Cloud & IT
Telecom
Media & Entertainment
Government
BFSI
Manufacturing
E-Commerce
Other End User
Non-Utilized
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Phoenix Data Center Market Research Faqs

How big is the Pheonix Data Center Market?

The Pheonix Data Center Market size is expected to reach 0.85 megawatt in 2025 and grow at a CAGR of 18.5% to reach 1.99 megawatt by 2030.

What is the current Pheonix Data Center Market size?

In 2025, the Pheonix Data Center Market size is expected to reach 0.85 megawatt.

Who are the key players in Pheonix Data Center Market?

Digital Realty Trust, Inc., DataBank, CyrusOne, Cyxtera Technologies, Inc. and Cogent are the major companies operating in the Pheonix Data Center Market.

What years does this Pheonix Data Center Market cover, and what was the market size in 2024?

In 2024, the Pheonix Data Center Market size was estimated at 0.69 megawatt. The report covers the Pheonix Data Center Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Pheonix Data Center Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

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Phoenix Data Center Industry Report

Statistics for the 2025 Phoenix Data Center market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Phoenix Data Center analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Phoenix Data Center Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)