By AZRE
Cushman & Wakefield’s Americas Data Center Update found the Phoenix data center market displayed remarkable momentum and continued its ongoing ascent as a central hub for data centers on the West Coast.
In the first half of 2024, the Phoenix market saw 126MW of absorption, further solidifying its position in the elite rank of gigawatt-plus markets. Despite a slight slowdown in absorption due to supply constraints, the demand remains robust with tight vacancy at 1.3%.
As interest in the deployment of AI and cloud data centers increased in the first half of 2024, both established and emerging markets continued to grow, with absorption looking to exceed 2023’s record levels. Power availability remains the key concern, with developers scouring wide geographic areas for sizeable power options within the next two to three years. Even as supply pipelines grow, demand has continued to race ahead—leading to ever lower vacancy rates across the board.
