Phoenix has become a significant hub for data center development due to its location and affordable land. A study by Cushman & Wakefield identified Phoenix as one of six primary markets accounting for 72% of U.S. data center development in 2022. In the first half of 2023, over 400 megawatts of data centers are projected for Phoenix, pushing its capacity to approximately a gigawatt. Tech giants like Apple, Meta Platforms Inc., and Google have significant investments in the region. Key factors driving data center decisions include power availability, fiber connectivity, and water access, with concerns about water use, particularly for AI applications that demand liquid cooling.
