Phoenix Ignites as the U.S.'s Second-Mightiest Data Center Dynamo

Well, howdy there! Let me tell ya, as someone who's seen the desert bloom into a tech oasis, this news is hotter than a mid-summer day in Scottsdale. Metro Phoenix, our very own jewel in the desert, has been shining bright on the tech frontier, now standing proud as the second-largest data center market in the whole United States. You heard that right! According to the latest scoop from JLL’s H2 2023 North American Data Center Report, our sunny slice of paradise is only outshone by the tech giant, Northern Virginia.

Why is Phoenix soaring to such heights, you ask? Well, it's all thanks to our abundant and affordable power, not to mention plenty of room for new developments. In the latter half of 2023 alone, Phoenix completed leases for a whopping 748MW of new data center capacity, with a massive 2.8 million square feet (703MW) currently under construction. That's enough to make any tech lover's heart skip a beat!

And let me tell ya, the rest of the country's got its eyes on us for good reason. The availability of power and land in Phoenix is unbeatable, driving demand through the roof. Our local market's so hot right now, it's seeing exponential growth and absorption, making us a prime spot for data center users far and wide.

Now, with over 6.9 million square feet (740.2MW) of data center inventory and barely any vacancy, Phoenix is buzzing with construction. We've got another 2.7 million square feet (634MW) planned, ready to meet the insatiable appetite for data storage and processing power. And let's not forget, our costs, even though they're on the rise, remain fiercely competitive. Power rates might've jumped a bit, but at 7.5 cents per kilowatt-hour, we're still a bargain compared to our neighbors.

But it's not just about saving a few bucks. Phoenix's strategic advantage is in its operational efficiency and the growing need for cutting-edge technology like AI and Large Language Models, including ChatGPT, which is just gobbling up power. As the tech industry evolves, Phoenix is not just keeping up; we're setting the pace.

And get this, investors are noticing too. The data center sector is seeing a boom, with transactions growing faster than almost any other sector. This is big news for Phoenix, attracting private equity firms and expanding companies looking to dive into the vibrant market here.

So, whether you're a cloud giant, a hyperscale user, or a small enterprise looking for your spot in the digital landscape, Phoenix is where it's at. With our unbeatable mix of capacity, cost, and strategic location, we're not just a hot spot for data centers; we're the future of tech. Y'all better believe, Phoenix is not just rising; it's already soared.