The metro Phoenix data center market from 2018 into 2019 has been bustling both with significant new construction and recent announcements, helping to vault its ranking upward as one of the Top 10 data center markets in the U.S. While just three years ago its ranking stood at No. 10, its competitive advantages and friendly business climate have made the region a popular choice in data center site selection. Now metro Phoenix is slotted as the No. 5 U.S. data center market in overall capacity, overtaking much larger business centers such as Los Angeles, Greater New York/Northern New Jersey and Atlanta. And it stands poised to move another rung or two as hundreds of megawatts comprising several existing data center developers along with a few new entrants are in the pipeline.
The Phoenix region benefits significantly from its location in the U.S. and hits top marks across the site selection matrix of imperative requirements, notably:
Microsoft plans data center cloud initiative in Phoenix
Microsoft put its approval stamp on the metro Phoenix region in a big way announcing its plan for three new 100+ megawatt campuses here to support its burgeoning cloud business. Two campuses are in west Phoenix in the city of Goodyear with the other further north in the city of El Mirage.
While the Northern Virginia region, and especially Loudoun County, remains the epicenter of cloud networking, such major initiatives in Phoenix by a dominant player such as Microsoft can only bolster Phoenix’s presence in this sector.
Competitive colocation and powered shell landscape gets congested
The general submarkets outside of downtown where the concentration of colocation providers are located are the following:
Pretty much every major enterprise class data center developer and colocation operator maintain significant facilities all with ongoing expansion plans, with a few new notable competitors making recent 2019 commitments to the region. The following are some of the competition in certain submarkets:
Goodyear/West Phoenix (two new competitors entering the market for 2019)
There continues to be significant bullish confidence on the entire Phoenix data center market. Its overwhelming advantages will continue to allow this market to be an important player in the U.S. for all data center users and their needs.