Phoenix Data Center Leasing Sees an Uptick, According to Latest CBRE Report

The COVID-19 pandemic, and career-centered computer science education, has increased the demand for technology and software in Phoenix, AZ. In the past 10 years, Phoenix, AZ has seen a 30% increase in jobs in the tech sector which is nearly 10% greater than the national average. In this last year, Phoenix experienced the second-most Data Center leasing activity in North America, according to CBRE’s latest North American Data Center Trends Report.

Phoenix is a desirable area for Data Center users because it has available land and an ideal climate. There aren’t natural disasters, and the land has access to power and low latency. Data Centers have witnessed an increase in construction and net absorption as cloud service providers and social media platforms control the demand, according to CBRE.

The market has increased 12% from last year due to providers bringing capacity. Providers brought 214.3 megawatts (MW) of supply to Data Center markets in the first half of 2021 which is 7% greater from the year before. In addition, Phoenix saw an increase in leasing activity in Q2 2021. Phoenix had more leasing activity than any other quarter during the last five years.

The tech industry is producing rapid technological advancements as a result of the customer’s growing need for communication and workflow software. This cycle is creating more job opportunities within the Phoenix area. Working remotely has increased the demand for communications systems such as video conferencing and chat applications. In addition, there is a high demand for faster data speeds, so Data Centers are expanding and growing.

Arizona consists of many computer science-oriented education programs. Phoenix has over 15 colleges and universities that offer Information Technology degrees. In turn, this will fill job spots within the industry.

With a corporate office in Arizona for the last ten years, DSI has seen firsthand the robust Data Center growth. The increased growth was also validated two weeks ago when DSI participated in an in-person Technology Summit in Arizona. Machaon Corporation gave us the opportunity to get out and start networking again. Machaon Corporation’s 12th annual B2B Summit featured industry leading IT & Security companies, valuable peer networking, and educational presentations on a full range of technology and security topics. We were delighted to see the excitement on the event we just finished. It was an experience like no other. The event was held at the Scottsdale Resort at McCormick Ranch. As the technology industry in Phoenix expands, DSI will continue to meet the needs of our existing and new customers.

For further analysis on the Phoenix tech market, check out our earlier blog, Rapid Tech Sector Growth in Phoenix is Favorable to The Data Center Industry.