Intelligent Investment
Phoenix
North America Data Center Trends H1 2023
September 6, 2023 4 Minute Read
Colocation Insights
- Rental rates increased up to 30% over the trailing 12 months.
- Hyperscale requirements are growing up to 60 MW.
- Space is being pre-leased up to 24 months before it comes online.
Market Trends
- Colocation developers and occupiers are increasingly competing over the same projects.
- Cities in the greater Phoenix metro area are demanding air-cooled technology and not allowing water-cooled systems.
Notable Activity
- Google started construction on a new $1 billion data center in Mesa.
- Meta is building a 1 million sq. ft. campus in Mesa.
- A 6 MW, 55,000 sq. ft. data center is available for sale or lease.
Figure 1: Historical Market Information
Source: CBRE Research, CBRE Data Center Solutions, H1 2023.
Figure 2: Historical Supply and Demand
Source: CBRE Research, CBRE Data Center Solutions, H1 2023.
Figure 3: % of Total Primary Market Inventory
Source: CBRE Research, CBRE Data Center Solutions, H1 2023.
Figure 4: Market Fuel Mix
Source: Arizona Public Service.
Figure 5: Average Asking Rates
Source: CBRE Research, CBRE Data Center Solutions, H1 2023.
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