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A top city for Data Centers
Greater Phoenix is the fifth-largest data center market in the U.S. With over 300 megawatts of existing inventory and an additional 250 megawatts of inventory planned for the near future, the market growth shows no signs of slowing down. Greater Phoenix continues to prove to be one of the top cities for data centers.
Greater Phoenix is the fifth-largest market by inventory in megawatts, growing 61.6% since 2015. Colocations in the market from industry leaders such as Digital Realty Trust, CyrusOne, and Iron Mountain. Enterprise users include Apple, GoDaddy and Microsoft.
Operating costs for data centers in Phoenix are up to 41% lower than competing markets with competitive pricing on electricity. Arizona is a right-to-work state and offers substantially lower corporate income tax rates.
There are nearly 150,000 jobs in relevant data center occupations in Greater Phoenix. Labor costs are thousands of dollars less per employee per year for data centers located in the region. Completions in relevant degree programs increased 46% from 2014-2019.
Greater Phoenix offers sales tax and use tax exemptions for up to 20 years for data centers as well as $9,000 of corporate income tax credits per job. Additional depreciation also greatly reduces property tax liability.
Greater Phoenix is one of the most dependable electric grids in the nation with a low risk of natural disasters and a large network of fiber.
Greater Phoenix’s education pipeline is highly competitive with other key markets. Many companies in similar industries enjoyed easy hiring thanks to a quality workforce pipeline and the region’s excellent quality of life driving additional talent to choose to relocate to the region.
The region’s universities are committed to supplying the workforce needed to enable companies to scale in the region making Greater Phoenix one of the top tech cities for data centers. Whether you are looking to relocate, start, or grow your business, Greater Phoenix’s talent pipeline is well-equipped with the knowledge necessary to help support your data center.
Nationally Recognized Programs Supporting Data Center Education
Colocations in Greater Phoenix
Many major players in the colocation space have brought data center operations to Greater Phoenix. Below are some of the companies with data centers in the region.
Enterprise Data Centers in Greater Phoenix
In addition to numerous colocations, Greater Phoenix is home to a number of enterprise data centers. Below are the companies operating in Greater Phoenix.
Greater Phoenix’s robust workforce remains affordable. As one of the nation’s top cities for data centers, Phoenix continues to pave the way for innovation at a more affordable cost. Compare median wages across peer markets in the table below.
|Occupation||Phoenix||Atlanta||Dallas-Fort Worth||San Jose||Washington DC - Arlington|
|General and Operations Managers||$92,252||$102,162||$108,886||$144,816||$139,509|
|Software Developers and Software Quality Assurance Analysts and Testers||$100,276||$104,861||$109,557||$141,578||$115,731|
|Sales Representatives of Services, Except Advertising, Insurance, Financial Services, and Travel||$54,558||$57,573||$59,427||$75,917||$66,031|
|Computer User Support Specialists||$49,153||$52,240||$48,105||$75,613||$62,149|
|Computer Systems Analysts||$90,509||$88,943||$94,065||$118,646||$105,589|
|Computer and Information Systems Managers||$138,167||$144,932||$154,135||$198,288||$166,871|
|Computer Occupations, All Other||$81,644||$90,732||$94,294||$135,339||$117640|
Greater Phoenix Operating Costs for Data Centers
Factoring in operating costs when starting, expanding, or relocating your business is crucial. Greater Phoenix boasts low operating costs compared to competitor markets and impressive tax incentives, making it the perfect location for data centers. Arizona has a very competitive tax rate and a mandated benefits environment compared to peer markets. Even with the highly competitive tax environment, there are also several tax incentives that can be utilized to mitigate operating costs. Greater Phoenix is competitive when it comes to the cost of utilities compared to competitor markets as well. See below how Phoenix competes with other top markets and download the full report to get a complete look into how data centers in Phoenix can succeed.
- $50,000,000 personal property investment
- 100,000 square foot High Tech, Purchase
- Utilities (per month):
- Electricity: 5,000KW, 2,500,000KWh
- Water/Wastewater: 50,000cf, 2 meter
- 20 jobs (Bureau of Labor Statistics equivalent occupations)
|Software Developers, Systems Software||7|
|Information Security Analysts||6|
|Computer Systems Analysts||4|
|Network and Computer Systems Administrators||2|
|Computer and Information Systems Managers||1|
Annual Operating Costs
Parks and Recreation
Greater Phoenix is home to hundreds of parks and hundreds of miles of hiking, biking, and walking trails. Phoenix is home to the three largest municipal parks in the nation: McDowell Sonoran Preserve, South Mountain Preserve, and Phoenix Sonoran Preserve. Other large parks in the region include the White Tank Mountain Regional Park, Camelback Mountain, Piestewa Peak, and the Superstition Mountains. Notable walking trails in the region include the canal system, Tempe Town Lake, the Greenbelt, and Papago Park.
Cost of Living
When you choose to relocate to Greater Phoenix, you do not have to give up your career working within the data center industry. The region is a leader in the industry, offering growth opportunities for both employers and employees. Use the calculator below to see some of the potential savings you could see if you chose to relocate to Greater Phoenix while still working at a data center.