Intelligent Investment

Phoenix

North America Data Center Trends H1 2023

September 6, 2023 4 Minute Read

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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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