Digital Realty’s 2022 Phoenix Data Center Market Report highlights the region’s rise as a top U.S. data center hub due to low latency, tax incentives, affordable power, and low natural disaster risk. Phoenix saw record absorption of 215 MW in 2021, driven by cloud and hyperscale demand. Supply continues to expand rapidly, though challenges include extended power delivery timelines. The market’s affordability and proximity to West Coast metros make it a preferred alternative to California. Demand remains strong in 2022, with significant preleasing and continued investment despite rising construction and power costs .

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