Phoenix becomes a powerhouse in data center development; incentives key, says Rose Law Group Founder and President Jordan Rose

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The whispers and hints of big things happening in the Phoenix data center market are now full-fledged roars and the market is no longer a sleeping giant. The giant has awoken.

The Phoenix area has exploded with data center development. In Goodyear alone, three companies — Stream Data Centers, Vantage Data Centers and Compass Datacenters — have announced plans to build data center campuses. All told, those campuses could house enough data storage units to use 600 megawatts of power. The size of a data center is measured by how much electricity is needed to power all of the servers that are housed in the facility, which typically hold tens of thousands of servers.

“There has been a little bit of a chatter for the past 18 months and a lot of that chatter has been that senior living is going to be hot for the next five years, and, oh, by the way, data centers as well,” said Kevin Somerville, Vice President of business development for Buesing Corp., a general contracting firm that does earthwork for the data center market. “If you look at our activity the last couple weeks, we’re touching five or six data centers the last few weeks. People are starting to build for real now.”

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“Arizona really leads with incentives for data center development and we are now seeing the market understand what Governor Ducey has done to entice these important projects to our state,” said Jordan Rose founder and president of rose law group who has been working on data center projects. 

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