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CBRE survey places Phoenix 5th in Datacenter activity

Phoenix Ranks 5th in Datacenter Growth

A recent CBRE survey on datacenter trends reports that Phoenix is one of the fastest growing markets for new centers, ranking fifth. Rental rates have increased 20% over the last 12 months, hyper scale lease activity has increased while inventory has declined. There has been an increase in activity from out of state technology. However, the segment is hampered due to the fact that Arizona Public Service and the Salt River Project have reported longer delays for quality redundant power delivery.

In terms of activity, Aligned Data Centers paid $115 million to purchase an older office project for conversion to a data center space and STACK Data Centers purchased 80 acres in central Phoenix for a new data center campus.

The segment has been constrained by two key factors, β€œData center leasing slowed in the second half of 2022, but this was driven purely by a lack of available space and power constraints,” said CBRE’s Pat Lynch.


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About Mike Boyd

Mike covers our Texas and Phoenix/Southwest regions. He is a veteran news reporter who spent 10 years in radio and television news, mostly in Tucson, Arizona. Following his career in the media, he spent ten years as a communications executive for a publicly traded development company. Mike is married with three boys and three Huskies.

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