Phoenix is a Tier 1 US data center market in AZ on the WECC grid. Colocation inventory is about 807 MW (CBRE NoVA press release top-10 table (H2 2025): Phoenix 807.3 MW inventory, 10.5 MW available; JLL H1 2025: 904 MW). Typical colocation pricing runs $150-210/kW/month for 1-5 MW (JLL H1 2025). GoDataCenters tracks 144 facilities from 8 operators in the metro.
Phoenix data center market at a glance
| Metric | Value | Source |
|---|---|---|
| Operational colocation inventory | 807 MW | CBRE NoVA press release top-10 table (H2 2025): Phoenix 807.3 MW inventory, 10.5 MW available; JLL H1 2025: 904 MW |
| Under construction | 1,700 MW | JLL H1 2026 press release: ‘Phoenix absorbed 442 MW amid 1.7 GW under construction’; JLL H1 2025: 1,307 MW; CBRE H2 2025: under construction flat YoY |
| Planned pipeline | 4,154 MW | JLL Midyear 2025 (4,154 MW planned; #2 in US) (H1 2025) |
| Net absorption | 442 MW | JLL H1 2026 press release (H1 2026 absorption 442 MW); CBRE H2 2025 chapter: 256 MW absorbed across four projects in H2 2025 |
| Typical pricing (kW/month) | $150-210/kW/month for 1-5 MW (JLL H1 2025); $170-210/kW (CBRE H1 2024) | |
| Grid operator | WECC (non-RTO; APS/SRP balancing authorities) | |
| Power utility | Arizona Public Service (APS); Salt River Project (SRP) | |
| Power cost note | 7.5 cents/kWh electricity cost cited for Phoenix (AZ Big Media citing JLL Midyear 2025) | |
| Facilities tracked by GoDataCenters | 144 | GoDataCenters facility database |
How available is power for data centers in Phoenix?
SRP and APS power-delivery restrictions are limiting availability of powered land sites; SRP processing its first cluster study of 25 applicants with mixed initial results (CBRE H2 2025). Hobbs energy plan / grid strain a 2026 policy theme.
Power is served by Arizona Public Service (APS); Salt River Project (SRP). Grid operator: WECC (non-RTO; APS/SRP balancing authorities).
Who are the major data center operators in Phoenix?
Major operators active in the market: Microsoft, Aligned, STACK Infrastructure, NTT, CyrusOne, Digital Realty, Iron Mountain, EdgeCore, Vantage, Compass, QTS, Meta (Mesa), Google (Mesa).
| Operator | Facilities in metro (GoDataCenters DB) |
|---|---|
| EdgeCore | 17 |
| Compass Datacenters | 13 |
| Aligned Data Centers | 10 |
| CyrusOne Data Centers | 9 |
| NTT DATA, Inc. | 8 |
| Prime Data Centers | 6 |
| Vantage Data Centers | 6 |
| Menlo Digital | 6 |
Facility concentration by city: Phoenix (144).
What does colocation cost in Phoenix?
Typical pricing bands: $150-210/kW/month for 1-5 MW (JLL H1 2025); $170-210/kW (CBRE H1 2024). Bands are brokerage-reported ranges for the market, not quotes. Actual rates depend on power density, term, ramp and redundancy.
What tax incentives apply to data centers in AZ?
| Item | Detail |
|---|---|
| State sales/use tax exemption | yes (moratorium on new certifications Jul 1 2026 – Jun 30 2029) |
| Program | Arizona Computer Data Center Program (TPT/use tax exemption) |
| Threshold | $50M capital investment within 5 yrs in Maricopa/Pima counties; $25M in other counties; 10 yrs (20 yrs for Sustainable Redevelopment Projects) |
| Note | Three-year moratorium on new program certifications July 1, 2026-June 30, 2029 (compromise after Gov. Hobbs sought full repeal; est. $57M savings) per constructionowners.com 2026 update. |
Phoenix colocation by capacity band
Frequently asked questions
How much data center capacity is in Phoenix?
About 807 MW of operational colocation inventory per CBRE NoVA press release top-10 table (H2 2025): Phoenix 807.3 MW inventory, 10.5 MW available; JLL H1 2025: 904 MW. A further 1,700 MW is under construction.
What is the typical colocation price per kW in Phoenix?
$150-210/kW/month for 1-5 MW (JLL H1 2025); $170-210/kW (CBRE H1 2024).
Which grid serves Phoenix data centers?
WECC (non-RTO; APS/SRP balancing authorities). Utility: Arizona Public Service (APS); Salt River Project (SRP).
Does AZ offer a data center sales tax exemption?
yes (moratorium on new certifications Jul 1 2026 – Jun 30 2029). Program: Arizona Computer Data Center Program (TPT/use tax exemption). Threshold: $50M capital investment within 5 yrs in Maricopa/Pima counties; $25M in other counties; 10 yrs (20 yrs for Sustainable Redevelopment Projects).
Is Phoenix a Tier 1, Tier 2 or Tier 3 data center market?
Phoenix is classified as a Tier 1 market, using the CBRE, JLL and Cushman & Wakefield market tracking conventions.
Related pages
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Sources
- https://www.cbre.com/press-releases/northern-virginia-extends-lead-as-largest-u-s-data-center-market-in-2025
- https://www.cbre.com/insights/books/north-america-data-center-trends-h2-2025/phoenix-data-center-market
- https://realestatedaily-news.com/wp-content/uploads/2025/08/JLL-North-America-Data-Center-Report-Midyear-2025-8.14.25.pdf
- https://www.jll.com/en-us/newsroom/data-center-demand-exceeds-expectations-in-h1-2026
- https://azbigmedia.com/real-estate/big-deals/industrial/phoenix-ranked-no-2-in-us-for-planned-data-center-development/
- https://www.cbre.com/press-releases/cbre-report-phoenix-moves-ahead-of-silicon-valley-in-data-center-inventory
- https://baxtel.com/data-center/phoenix
- https://www.azcommerce.com/incentives/computer-data-center-program/
- https://www.constructionowners.com/insights/data-center-tax-incentives-state-by-state-whos-still-giving-whos-taking-back
Data compiled by GoDataCenters. Last updated 2026-09-02. Figures are market-level ranges from cited reports, not quotes.