Data center expansion drives Phoenix industrial construction rebound
The Phoenix industrial market continues to demonstrate resilience and growth, with 17.1 million square feet (msf) currently under construction–an increase of 3.7 msf from the Q4 2024 trough. Developer confidence has rebounded, and tenant demand is sustained, particularly in the data center segment. Phoenix has established itself as a data center hub, with EdgeCore, Meta and Aligned Energy collectively contributing nearly 2.8 msf of active projects. These large-scale facilities are shaping the industrial landscape, accounting for a significant share of the 7.6 msf build-to-suit construction pipeline, which represents 44.5% of total activity.