01 Overview
02 Talent Pipeline
03 Industry Ecosystem
04 Labor Analysis
05 Operating Cost Analysis
06 Quality of Life

Secure your future in

Greater Phoenix

 

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.

 

Request your 21-page in-depth report
When new versions are released, you’ll be the first to know.

Contents

1
Overview
2
Talent Pipeline
3
Industry Ecosystem
4
Labor Analysis
5
Operating Cost Analysis
6
Quality of Life
1

Overview

Greater Phoenix is well-positioned to support both new-to-market data centers and the expansion of our existing cluster.

Large Existing Cluster

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.

Competitive Operating Costs

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.

Robust Workforce

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.

Economic Development Programs

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.

Reliable Infrastructure

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.

2

Talent Pipeline

Greater Phoenix boasts competitive non-distance program completions at colleges and universities in the concentrations of computer science, information technology, cyber operation, and more.

University Alignment

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

3

Industry Ecosystem

With one of the most reliable electrical grids in the nation, Greater Phoenix is home to some of the biggest data centers in the nation.

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.

Banne Health
Godaddy
Honeywell Aerospace
4

Labor Analysis

Greater Phoenix has a robust supply of human capital at an affordable cost – perfect for companies looking to start, relocate,  or expand.

Median Wage

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
5

Operating Costs

Data Center – Colocation

In addition to being one of the largest data center markets in the nation, Greater Phoenix also offers competitive operating costs compared to key markets.

 

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.

 

Assumptions

  • $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)
Occupation Employment
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
Total 20

Annual Operating Costs

6

Quality of Life in Phoenix

Greater Phoenix offers residents unlimited recreational activities, a robust restaurant industry with flavors from around the world, day and night activities for the family, outdoor fun and so much more.

 

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.

Austin
Dallas
Denver
Los Angeles
Portland
San Francisco
Seattle
Annual Income
Monthly Mortgage
5,000
Monthly Healthcare
Monthly Groceries
Total Annual Savings
$

Want to see a full list of companies in Greater Phoenix? Download the complete report.

Latest News