Colocation Insights

  • The colocation space and power absorption of four citywide projects totaled 256 MW in H2 2025.
  • Full-scale colocation projects in Mesa, Phoenix, Avondale, Goodyear and Glendale are expected to complete within the next 12 months.

Market Trends

  • SRP and APS power-delivery restrictions are limiting the availability of powered land sites.
  • Hyperscaler demand remained strong, driving rent stability and preleasing.

Notable Activity

  • Menlo Properties demolished an office campus in Phoenix and started construction on a new data center project.
  • SRP is processing its first cluster study of 25 applicants. Initial results are mixed.

Figure 1: Historical Market Information

Source: CBRE Research, CBRE Data Center Solutions, H2 2025.

Figure 2: Historical Supply and Demand

Source: CBRE Research, CBRE Data Center Solutions, H2 2025.

Figure 3: % of Total Primary Market Inventory

Source: CBRE Research, CBRE Data Center Solutions, H2 2025.

Figure 4: Market Fuel Mix

Source: Arizona Public Service.

Figure 5: Average Asking Rates

Source: CBRE Research, CBRE Data Center Solutions, H2 2025.
Several server racks, showcasing a robust IT infrastructure suitable for technology companies or data centers.
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.