GI Partners has acquired a 5.4-acre land parcel just south of Phoenix for $14.7 million, with plans to develop a data center on the site. The buyer, a private alternatives investment firm, is positioning the property for future digital infrastructure use, focusing specifically on data center development rather than broader mixed-use or residential strategies.
The seller, LKY, originally purchased the land in 2012 for $3.15 million, according to reporting cited from The Phoenix Business Journal. Over the intervening years, LKY worked closely with local utility provider APS to support the long-term potential of the site for data center use, including efforts tied to an adjacent APS substation.
The parcel sits immediately next to that APS substation, a locational feature that LKY says it has worked with the utility to expand in order to accommodate a future data center. This proximity to power infrastructure is a central characteristic of the site and has been part of the long-term planning around its potential use as a data center location.
On the entitlement side, Phoenix has concluded that a data center project would be allowed on the site, providing regulatory clarity around the planned use. This determination reduces zoning uncertainty for GI Partners as it moves from land acquisition into planning for potential development.
LKY Development Company, Inc. focuses on acquiring and entitling subdivisions and master planned communities, and its role here centered on preparing the land and working with the utility to position the parcel for a data center buyer. For GI Partners, the purchase aligns with its broader investment activity across private equity, real estate, and data infrastructure strategies. The firm, which maintains several offices including one in Scottsdale, reports having raised more than $49 billion in capital from institutional investors worldwide to deploy across these areas.
