Data Center Market Rose from the Ashes Q2 2014

CBRE reports that like the mythical bird for which the city is named, the data center market in Metro Phoenix emerged from the ashes in the second quarter of 2014 posting phenomenal numbers for both the delivery and absorption of data center inventory.

In Q2 2014 the market saw two transactions that delivered more than 10MW total commitment each consummate with different landlords.

With the most active leasing market in the country, the west’s largest data center hub seems to be back on track after a short quiet period that ran from the late months of 2013 into the first few months of 2014.

It seems as though much of the market’s growth can be attributed to yielding the lowest total costs of occupancy available in a major city in the western United States. Though rent for data center space in Eastern Washington is roughly equivalent to rents in Phoenix and power rates are a third of those in Phoenix, it seems the three hour commute from the nearest airport is proving to be an obstacle for leasing in the Pacific Northwest.

New statutory tax incentives and consistently low power costs give Phoenix the edge over other major western markets, with 17 MW of construction underway, and the entrance of two new providers in the market expected by Q2 2015.

To read the full report from CBRE Click Here for Q2-014_DataCenter_Phoenix Market Report