Data center developers face challenges when deciding where to build

Photo Credit: AZBigMedia

By Steve Burks | AZBigMedia

The Phoenix Metro market has gradually become a major factor in the world of data center development in the United States. According to CBRE’s most recent North America Data Center Report, Phoenix was the second-most active market in the United States, ahead of long-time primary markets like Silicon Valley, Dallas/Fort Worth, Chicago and Atlanta.

Most of that data center activity has been occurring in the far reaches of the Valley, in areas like Goodyear and far east Mesa. Large-scale data center developments like EdgeCore in east Mesa and Stream Data Center and Compass Data Centers in Goodyear get much of the attention. Also, Microsoft is building on all three of its sites in the West Valley and Google is getting permits for its site in that submarket as well.

There is a new, large data center development that is just getting underway. QTS Data Centers, which is a branch of QTS Realty Trust, Inc., is just beginning work on its second Phoenix location. QTS has been approved for 2 million square feet of data center product on an 80-acre site. Based on recent trends, it would be easy to assume that this new facility was being built in Goodyear or West Phoenix or Far East Mesa, but this new facility is a rare infill project. The new QTS facility, which is being built by DPR Construction, is located along McDowell Rd., between 37th and 40th streets in Phoenix, just north of the Loop 202.

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