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MARKETS · PHOENIX

Phoenix data center colocation for AI.

A primary market absorbing capacity fast. We search here for liquid-cooled and high-density space for GPU deployments from a single rack to 20 MW+.

MARKET SNAPSHOT · H1 2026

Fast absorption, little left on the shelf.

1,069.2 MW

Colocation inventory

12.1 MW

Available at mid-year

260+ MW

Colocation absorbed in H1 2026

Phoenix absorbed more than 260 MW of colocation in the first half of 2026, leaving 12.1 MW available at mid-year. For large GPU deployments, most options here will come from capacity still under construction.

Power, incentives and local rules

  • APS says it has made no new data center service commitments since January 1, 2024, because of grid constraints.
  • SRP bills new accounts of 20 MW or more at the greater of actual demand or 80% of forecast load.
  • APS and SRP each set peak demand records of about 9,070 MW in July 2026, on a 117°F day.
  • Arizona paused new data center tax exemption applications from July 1, 2026 through June 30, 2029. Sites already certified keep their benefits.
  • Phoenix adopted zoning rules for data center location, design and noise in 2025, and many cities limit water use by new industrial users.

Sources: KJZZ (Sep 2, 2026); SRP; KJZZ (Jul 29, 2026); KPMG (Jun 22, 2026); KJZZ (Jul 3, 2025).

Common questions

Is there available data center capacity in Phoenix?

12.1 MW of 1,069.2 MW was available at mid-2026, per CBRE.

How do you find space in a market this tight?

We look beyond listed availability: capacity under construction, expansions at existing campuses, and sublease space. Each option gets a confirmed power date before we present it.

Can Phoenix sites support liquid-cooled GPU racks?

Some can. We confirm cooling, rack density and the energization date for each site before we introduce it.

Can I get new utility power for a Phoenix deployment?

Rarely. APS has made no new data center commitments since January 2024, so capacity that is already contracted or under construction is the practical route.

Is Arizona's data center tax exemption still available?

New certifications are paused through June 30, 2029. Sites certified before the pause keep their exemption, so ask whether a provider's site is certified.

Sources: CBRE (Aug 27, 2026); Data Center Frontier on CBRE H1 2026. All markets →

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