Phoenix Ranks #2 in Data Center Development Pipeline

According to the new JLL North America Data Center Report—Midyear 2025, Metro Phoenix ranks second in the data center development pipeline. Vacancy rates have dropped to an unprecedented 2.3% amid relentless demand for digital infrastructure. 

Among all planned North America data center development, Northern Virginia leads all markets with 5.9 GW planned, followed by Phoenix (4.2 GW), Dallas-Fort Worth (3.9 GW) and Las Vegas/Reno (3.5 GW).

The construction pipeline has ballooned to 7.8 GW, approximately 10 times the volume from five years ago. Phoenix (1.3 GW) leads construction activity followed by Chicago (1.18 GW), Atlanta (1.11 GW) and Northern Virginia (1.06 GW). 

More concerning for those seeking space is that 73% of all North America data center capacity under construction is already preleased. High preleasing has remained consistent for the past two years, signaling meaningful market relief remains years away.

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