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Markets · Data centers · Air cargo
Phoenix industrial land: data center, port and air-cargo demand
Phoenix absorbed more than 260 MW of colocation space in the first half of 2026, with JLL recording 442 MW absorbed and 1.7 GW under construction. Data as of Q2 2026. It is also a destination for AI hardware airlift, which is creating demand for the secure rack-integration warehouse type.
Key takeaways
- More than 260 MW of colocation absorption was recorded in the first half of 2026.
- JLL counts 442 MW absorbed and 1.7 GW under construction (first half 2026).
- Prime Data Centers opened the first building of a 240 MW Avondale campus in July 2026.
- Water allocation under Arizona's assured water supply rules is the binding local constraint (2026).
A quarterly brief on powered land, port capacity and air-cargo gateways, plus the Powered Land and Gateway Pricing Benchmarks data file.
- Dollar per megawatt and dollar per acre benchmarks by market, with the substation-distance and voltage premiums applied
- Every committed United States port capacity opening from 2026 through 2035, with cost, TEU and date
- Airport-adjacent rent premiums by gateway, and the constraint map that drives them
- The named project pipeline: site, megawatts, developer, power source, status
- Sources and periods for every cell. Nothing unattributed.
Phoenix in numbers
| Metric | Value | Period |
|---|---|---|
| Colocation absorption | More than 260 MW | First half 2026 |
| Absorption (JLL) | 442 MW | First half 2026 |
| Under construction (JLL) | 1.7 GW | First half 2026 |
| Prime Data Centers, Avondale | First building of a 240 MW campus opened | July 2026 |
What buyers are paying for here
Phoenix is the clearest market in the country for a second pricing axis alongside power. A parcel here can be underwritten by a data center buyer and by an air-cargo buyer at the same time, because the market is a destination for AI hardware airlift and therefore for the new secure rack-integration warehouse type.
On the power axis the standard premiums apply as published: roughly 2x for land within half a mile of a substation, and roughly 2.4x for 230kV or 500kV service against 138kV and below. With 1.7 GW under construction, both are being tested continuously.
The local modifier is water. Cooling strategy determines whether a site clears assured water supply review, and that review, not acreage, is what separates two otherwise identical parcels. A published land price band per acre for this market is not publicly available.
Apply the published substation-distance and service-voltage premiums to a parcel in Phoenix with the powered land premium calculator.
What is under construction within 100 miles
Prime Data Centers opened the first building of a 240 MW campus in Avondale in July 2026.
Across the metro JLL counts 1.7 GW under construction, against 442 MW absorbed in the first half of 2026 and more than 260 MW of colocation absorption specifically.
The air-cargo side of the market is developing alongside it: Phoenix is a destination for AI hardware airlift, which is generating demand for secure rack-integration warehouse space near the airfield.
Further named project sites within 100 miles are not publicly available in the sources behind this page.
The constraint
Water allocation and Arizona's assured water supply rules decide deals here.
A site's cooling design is therefore a land-value input rather than an engineering detail. Closed-loop and air-cooled designs change the water demonstration a buyer has to make, and that demonstration governs the timeline.
For a landowner the practical instruction is to document the water position before going to market. A parcel with an evidenced water path is transacting against 1.7 GW of active construction. A parcel without one is competing for the same buyers with an open diligence item that they will price.
Who covers Phoenix
Brad Cohen covers Phoenix for Landside Partners. Send one parcel and he will return a written read on what it is worth against the demand above, using data as of Q2 2026.
No fee. One parcel. One page. Usually back within five business days.
A quarterly brief on powered land, port capacity and air-cargo gateways, plus the Powered Land and Gateway Pricing Benchmarks data file.
- Dollar per megawatt and dollar per acre benchmarks by market, with the substation-distance and voltage premiums applied
- Every committed United States port capacity opening from 2026 through 2035, with cost, TEU and date
- Airport-adjacent rent premiums by gateway, and the constraint map that drives them
- The named project pipeline: site, megawatts, developer, power source, status
- Sources and periods for every cell. Nothing unattributed.
This research was produced by Landside Partners, a commercial real estate research and advisory firm working with owners of industrial land across North America on data center, seaport and air-cargo demand. To have a specific parcel assessed, contact Brad Cohen at Landside Partners.
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