The data center boom in the Southwest is drawing real estate developers eager to capitalize on surging demand. But navigating the market’s nuances and pitfalls — from securing power and water to overcoming land use challenges — isn’t easy, especially for new entrants.
“Nearly every large end user of data centers has planted their flag in Phoenix,” says Chad Riddle, civil and site development department manager with Colliers Engineering & Design. “You’ve got your Facebooks, Googles and Microsofts of the world — all the hyperscalers. They saw the opportunity and they put down their flags here.”
The Southwest continues to attract new…