Phoenix Ranks Second in Data Center Market, Surpassed Only by Northern Virginia
According to a recent report from JLL, the Phoenix area is quickly rising through the ranks as one of the top data center markets. With its abundance of affordable power and available land for development, Phoenix completed leases for 748MW of new data center capacity during the second half of 2023. Currently, there are also 2.8 million square feet (703MW) under construction and an additional 2.7 million planned.
Mark Bauer from JLL states that “the availability of power and land are crucial factors in determining success in the data center market,” making Phoenix a highly desirable location.
The demand for generative AI technology like ChatGPT is rapidly increasing due to its immense capabilities but requires significant amounts of power to operate efficiently. In January 2023, ChatGPT had just over 100 million monthly users but by November it had surpassed over active weekly users worldwide with about as much energy consumption as approximately33,000 households combined.These cloud and hyperscale users are further driving demand in this thriving market.
This article was originally published on Connect CRE’s website.
