Data Centers in Phoenix

Phoenix – Resilient Hub for the Western US

Phoenix stands as a premier North American data center market, ideal for organizations prioritizing uptime and scalability. Its relative safety from natural disasters, coupled with extensive connectivity and a favorable tax climate, makes it a top choice for both disaster recovery sites and primary production workloads serving the Western United States.

Phoenix: At A Glance

Network & Connectivity Ecosystem

Phoenix provides a superb connectivity environment, rivaling larger coastal markets without the associated costs or risks.

Carrier Density & Carrier Neutrality With nearly 50 carriers operating in the metro area as of September 2025, businesses have extensive choice. The market is dominated by carrier-neutral facilities, ensuring competitive pricing and resilient multi-carrier strategies for maximum uptime.

Direct Cloud On-Ramps The region features over 8 dedicated cloud on-ramps providing direct, private access to 13 distinct cloud availability regions as of September 2025. Major providers with a physical presence include AWS, Microsoft Azure, and Oracle Cloud. This robust access enables secure, high-performance hybrid cloud architectures.

Internet Exchange Points (IXPs) The primary public peering point is the Phoenix IX, which facilitates low-latency traffic exchange between networks. Most large-scale peering is conducted privately within the major interconnection facilities, offering direct and efficient data transfer.

Bare Metal Bare metal server options are widely available from providers operating within Phoenix data centers. Companies like phoenixNAP offer dedicated server solutions that provide the performance and control required for demanding applications.

Power Analysis

Phoenix has a strong reputation for reliable and cost-effective power, a critical factor for any data center deployment.

Average Cost Of Power Industrial electricity rates typically range from $0.07 to $0.09 per kWh as of September 2025. This competitive pricing makes running power-intensive compute and storage workloads more economical than in many other major US markets.

Power Grid Reliability The power grid serving the primary data center zones is well-engineered and highly reliable, supported by a diverse energy mix that includes significant nuclear and solar generation. Major colocation facilities are fed by redundant substations, providing a stable foundation for mission-critical operations.

Market Access, Business & Tax Climate

The business environment in Arizona is exceptionally supportive of the data center industry.

Proximity To Key Business Districts Data centers in Phoenix are concentrated in areas like Chandler, Mesa, and Goodyear, offering secure locations that are still within easy reach of the central business district and the region's technology hubs.

Regional Market Reach From Phoenix, organizations can effectively serve end-users across the Southwestern United States, including Southern California, with very low latency. It is a strategic alternative to Los Angeles for reaching a population of over 50 million people.

Tax Advantage For Data Centers Arizona offers some of the most compelling data center tax incentives in the country. The Computer Data Center Program provides significant sales and use tax exemptions on equipment purchases for both operators and colocation tenants. This advantage directly lowers the total cost of ownership for deploying and refreshing critical IT infrastructure.

Natural Disaster Risk

Phoenix has a high National Risk Index score of 91.66, as of September 2025, placing it in a "Relatively Moderate" risk category nationally according to FEMA. However, the market is notably free of risks associated with major coastal storms, making it a popular choice for disaster recovery.

The primary environmental hazards to consider are:

• Drought
• Earthquake
• Heatwave
• Landslide
• Riverine Flooding
• Wildfire