PHOENIX (March 7, 2025) -- Demand for data center space in Phoenix has shown no sign of slowing down, with colocation leasing and preleasing activity increasing over the last three years. In 2022, the market saw a record 411MW in colocation leasing activity, which was topped by 643MW in 2023 and 669MW in 2024. The Phoenix colocation market currently has 24MW of available capacity, the largest block being 9MW. Like other established data center markets in the U.S., strong demand and limited availability have led wholesale occupiers to turn to planned and under-construction data centers to meet their needs, as reflected by the 84% prelease rate for data centers under construction across the Phoenix metro area. The planned pipeline signals years of development, with 4.7GW of capacity waiting to be built, 949MW of which is already committed.
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