PHOENIX — The Phoenix metro’s demand for data shows no signs of slowing down after a strong second-half finish to 2024.
The Valley remained one of the nation’s top data center markets in terms of operational capacity and saw three consecutive years of increased colocation leasing activity – when tenants rent server space in data centers – according to a report from Cushman & Wakefield. Last year saw 669 megawatts of colocation leasing activity, surpassing 2023’s 643 megawatts and 2022’s 411 megawatts.
The Phoenix metro had a colocation vacancy rate of 2.5% during the second half of 2024, and that matches other “high-performing” established markets, the report found. The tight market coincides with the 84% preleasing rate for both planned and under-construction data centers.
