Metro Phoenix ranks second in the data center development pipeline, according to the new JLL North America Data Center Report – Midyear 2025 . This places the Valley in a prime position as the North America Data Center colocation market reaches a critical tipping point, with vacancy rates plummeting 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 report also highlights how cloud providers and technology companies continue to dominate data center demand, accounting for 65% of all leasing activity.

Data center a bsorption outpacing supply

The North America

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