**Phoenix Emerging as a Data Center Powerhouse**
JLL’s North America Data Center Year-End 2024 Report highlights a rapidly expanding sector, with metro Phoenix positioned as a top-tier market due to its strategic location, robust infrastructure, and cost-efficiency.
The Phoenix data center market currently offers 804 megawatts (MW) of inventory, but is on the verge of a massive expansion with 1,004 MW under construction and an additional 3,684 MW planned.
In terms of absorption, Phoenix ranks third nationally, recording 166 MW absorbed in the latest half-year period. Northern Virginia leads the nation with 847 MW absorbed—representing 50% of total North American demand—followed by Chicago (308 MW). Dallas-Fort Worth (123 MW) and Toronto (55 MW) complete the top five.
Metro Phoenix data centers are evolving quickly, transforming from smaller facilities to large-scale 400 MW to 500 MW campuses. This growth is driven in large part by increasing demand from cloud service providers and the expanding needs of artificial intelligence workloads in Arizona.
The data underscores Phoenix’s transformation into a major hub in the North American data center landscape.
