### Phoenix Ranks 4th Among Data Center Markets
North American data center demand surged in 2024, leading to record-high construction activity. Phoenix emerged as one of the most expensive markets, with average asking rates ranging between $170 and $210 per month for 250-500 kilowatts (kW), according to CBRE’s latest **North American Data Center Trend Report**.
Total data center inventory in Phoenix expanded to 602.8 megawatts (MW), representing a 67% year-over-year increase and ranking the city as the fourth-largest market in North America. At the end of 2024, Phoenix had 176.0 MW of data center capacity under construction, up from 163.5 MW the previous year. This growth is driven by developers attracted to the region’s lower power costs and tax incentives. Phoenix trails only Atlanta, Northern Virginia, and Dallas in total inventory.
Additionally, Phoenix’s vacancy rate fell to a record low of 1.9%, a significant drop from the previous year. This decline is largely attributed to the market’s positive absorption of 245.5 MW in 2024.
