Primary Market: Phoenix

Colocation Insights

• Rental rates increased up to 20% over the trailing 12 months.
• Hyperscale lease activity is increasing as inventory declines.
• Preleasing activity is increasing.

Market Trends

• There is increased activity from out-of-state technology companies.
• Both APS and SRP power companies report longer delays for quality redundant power delivery.

Notable Activity

• Aligned Data Centers paid $115 million to purchase an older office project for conversion to a data center space.
• STACK Data Centers purchased 80 acres in central Phoenix for a new data center campus.

Figure 1: Historical Market Information

Source: CBRE Research, CBRE Data Center Solutions, H2 2022.

Figure 2: Historical Supply and Demand

Source: CBRE Research, CBRE Data Center Solutions, H2 2022.

Figure 3: % of Total Primary Market Inventory

Source: CBRE Research, CBRE Data Center Solutions, H2 2022.

Figure 4: Market Fuel Mix

Source: Arizona Public Service.

Figure 5: Average Asking Rates

Source: CBRE Research, CBRE Data Center Solutions, H2 2022.