Phoenix Ranked #2 Data Center Market

Metro Phoenix is near the top of the leaderboard when it comes to data centers. A recent JLL report put the Phoenix area at number two, just behind Northern Virginia. 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, and another 2.7 planned.

“The availability of power and land remain primary factors in data center market success, and Phoenix fares extremely well in both of these categories,” said JLL’s Mark Bauer.

Generative AI, like ChatGPT, requires tremendous amounts of power, and its popularity is soaring. ChatGPT had just over 100 million monthly users in January 2023. By November, it had over 100 million active users weekly. ChatGPT uses about as much power as 33,000 households. Cloud and hyperscale users are also driving demand.