Phoenix Data Center Market Size (2024 - 2029)

Phoenix Data Center Market Analysis

The Phoenix Data Center Market size is estimated at 0.72 megawatt in 2024, and is expected to reach 1.68 megawatt by 2029, growing at a CAGR of 18.5% during the forecast period (2024-2029).

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.

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.