PHOENIX, ARIZONA -- JLL has released its H1 2021 Data Center Outlook that includes a full page market update on Phoenix Arizona.
In the report, Phoenix ranks #3 in the U.S. for new data center construction and #3 in the U.S. for data center absorption.
Local competition is rising to an institutional level and demand doesn't seem to quit. One sign of this: local data center and industrial land prices have increased as much as 20-40% in the last 6-12 months.
Highlights include:
- A strong resurgence in enterprise-level demand was felt across the top major data center REITs in the first half of 2021. Financial, technology, and healthcare companies drove much
of this demand. Spend on public cloud services is projected to grow by 8.4 percent in 2021 reaching $4.1 trillion, according to Gartner.
• Data center providers and occupiers continue to make inroads with their sustainability goals. With health, wellness, and sustainability at the forefront of corporate agendas, the data center industry is feeling the heat to use more efficient systems, renewable energy, and carbon-cutting practices.
• Last year was a record-breaking year for mergers and acquisitions and data center investment. While activity is below last year’s pace, the largest data center deal on record was announced in June of 2021. Investment firm, Blackstone, purchased QTS Realty for $6.7 billion, $10.0 billion assuming debt, which puts it ahead of Digital Realty’s $8.4 billion
purchase of Interxion in 2020.
• The global construction pipeline remained robust in the first half of 2021. In the United States, construction ramped up from 611.8 MW in the end of 2020 to 680.8 MW in the first half
of 2021. The pipeline virtually stayed the same in the first half of 2021 compared to year-end 2020 in Europe.
• Demand is on pace for another strong year for data centers in 2021. Cloud, technology, and social media companies continue to drive near-record levels of demand across
the globe.