As household names like Google and Microsoft flock to Phoenix for data center uses, the Valley continues to rank highly for data center leasing and construction and will likely see even more activity resulting from the coronavirus pandemic, experts said.
“In the past five years, Phoenix has become more popular for data center users because of our climate, affordable power and fiber connectivity,” Mark Krison, senior vice president with CBRE, said. “I see Phoenix growing significantly in the next three to five years.”
According to a report from JLL, Phoenix saw 18.5 megawatts of net absorption in the first half of the year and has 63.6 megawatts vacant.
Krison said remote work and other changes from the pandemic will cause more demand for data centers, because employees will be using their own networks from home, rather than the networks set up by their employers for office use.