North American data center demand surged last year, driving a record amount of construction. Phoenix boasts some of the highest average asking rates ($170 – $210) for 250-500 kilowatt (kW) per month, according to CBRE’s latest North American Data Center Trend Report. 

Phoenix’s total inventory increased to 602.8 megawatts (MW) (a 67% increase year over year), ranking fourth largest among the North American primary data center markets. With 176.0 MW of product under construction at the end of 2024 – up from 163.5 MW at the same time last year – the market is being fueled by interest from developers seeking lower cost of power and tax incentives. Phoenix trails Atlanta, N. Virginia and Dallas.

Phoenix’s vacancy rate dropped to 1.9%, a significant decrease from the previous year, and a record low, which can be attributed to the 245.5 MW positive absorption in 2024.

April 10^th: Early Bird Registration is Open! Join Phoenix & Scottsdale’s most active multi-housing dealmakers and decision makers at The Westin Kierland Resort on April 10^th. Take advantage of the discounted early bird registration rate while it lasts and be there in-person to learn what the industry’s foremost experts forecast 2025 will bring to dealmaking, investment, development, management, financing, and more in the region! Connect Phoenix Multifamily, SFR & BTR | Thursday, April 10 at The Westin Kierland Resort & Spa, Scottsdale, AZ.