Chapter 7
Phoenix Data Center Market
North America Data Center Trends H1 2026
3 Minute Read
3 Minute Read
Colocation Insights
- More than 260 MW of colocation space was absorbed in H1, driven by enterprises undergoing digital transformations and the growing needs of cloud service providers.
- Three new colocation projects are currently under construction and are slated for completion in H2, adding much-needed capacity to meet sustained demand.
Market Trends
- Tenant demand for data center space and power is consistently growing.
- The average lease term for data center capacity in the market is seven years.
- The availability of suitable powered land sites continues to decrease due to new restrictions and opposition from cities and local municipalities.
Notable Activity
- Arizona enacted a 36-month moratorium on data center sales tax exemptions to curb new development, potentially impacting development costs and timelines for future projects.
- Despite new challenges, developers like Prime, Stack, Aligned, QTS and Vantage have significant development and expansion projects underway. This activity reflects ongoing confidence in the long-term growth of the data center market.
Figure 1: Historical Market Information
Figure 2: Historical Supply and Demand
Figure 3: % of Total Primary Market Inventory
Figure 4: Market Fuel Mix
Figure 5: Average Asking Rates
Report Contact
Property Type
Data Center Solutions
Our lifecycle data center service offering consolidates your data center real estate, facilities and technology systems into a single operational and financial model.