Phoenix’s data center market continues to expand with new Cyxtera location

Florida-based data company Cyxtera Technologies Inc. has recently announced its second Phoenix-area data center opening. The new location, opened last Tuesday at South Tempe’s ASU Research Park is a 37,000-square-foot industrial setup that has the ability to deliver 4 megawatts (or 4 million watts) of power.

The two-story building also houses 15,000 square feet of office space for customers to come in and have work space.

A big selling point for Cyxtera for expanding to a second location was customer demand in the area. The company, which has close to 60 other locations sprawled throughout the world, including hubs in Frankfurt, Vancouver, Perth, and Las Vegas, plans on opening more locations in the Greater Phoenix area.

“Phoenix is a very attractive market for data centers for many reasons: low power costs, low risk of natural disasters, favorable climate and competitive tax incentives,” explains David Lurie, senior vice president. “Additionally, there is a vast fiber infrastructure with many providers supplying long-haul connections through Phoenix.”

The company provides cybersecurity software solutions integrated within its data centers to convert its platform.

Phoenix keeps landing contract after contract for acquisitions of land or buildings, seeing the highest demand for new data center developments and projects. In the Phoenix area alone, about 1,000 acres of land have been purchased by data center companies in the last two years alone. Altogether, this comes to about 15 million square feet of planned data center buildings, putting it ahead of every part of the country in this kind of market, except northern Virginia.

A couple months ago tech giant Microsoft announced it had purchased a second plot of land in the west valley suburb of Goodyear with plans of using the former farmland as a new landing spot for its expanding data center projects.

Phoenix area was recently ranked as the second-most active data center market with new construction in the country, according to CBRE.