The Phoenix Data Center Market Overview – Q3 2016

09/14/2016

The data center industry is growing, with expansion and activity occurring in Northern Virginia, Chicago, Dallas, and Silicon Valley. While the Phoenix market is smaller than these other major markets, it’s still active, and providers are working to bring new capacity to the market. Data center users find Phoenix attractive for several reasons, including the competitive data center market, reasonable power cost, tax incentives, and low risk of natural disasters. The economic components of the market are competitively priced, especially when compared to other West Coast markets.



Digital Realty

Digital Realty operates three data centers in the Phoenix market, totaling approximately 45 MW of critical capacity. Their facility at 120 E Van Buren is one of the most highly connected data centers in the Phoenix market and also functions as an internet exchange. Digital Realty also owns space at 1900 S Price Road, with plans to develop in the future.


Aligned Data Centers

Aligned Data Centers is currently under construction with their Phoenix data center, which will be their second facility in the US (their first was delivered in Dallas). They offer a unique pay-for-use data center solution that provides an easily scalable data center solution. Aligned has partnered with Arizona Public Service to commission a dedicated substation for the facility. Aligned’s users are guaranteed a low PUE and highly reliable data center solution.



IO Data Centers

IO has two data centers in Phoenix, with a third on the way. They built their first facility in Scottsdale in 2007, and their second Phoenix facility in 2009, providing over 400,000 SF of colocation space. In February 2016, IO announced their purchase of nine additional acres adjacent to their larger data center, with plans to develop a massive, three-story facility. Construction is anticipated to begin in late 2016, with phased delivery beginning in 2017.



CyrusOne

CyrusOne owns a 57-acre campus in Chandler, with over 178,000 SF of data center space. There are two fully constructed data centers on the campus (12 – 16 MW of critical capacity each), specifically designed with high density and high efficiency in mind. CyrusOne is also currently developing the remaining space in their third facility on campus. Furthermore, CyrusOne has 27-acres available on the campus for future development.


Additional Providers Active in Phoenix

CenturyLink
H5 Data Centers
PhoenixNap
ViaWest

Sign up now to receive our weekly updates

* indicates required