Amazon Plans to Develop Data Centers in Mesa, Phoenix, Boosting the Growing Data Center Industry

In a bid to expand its data center infrastructure, Amazon has set its sights on the Mesa area of Phoenix, Arizona. The tech giant has proposed the development of up to four data centers, with each plan featuring two substantial buildings spanning 227,000 square feet (21,090 square meters). The strategic locations chosen by Amazon demonstrate its determination to cement its presence in this burgeoning data center hub.

Data center plans

The proposed data centers are to be located on land owned by Amazon in Mesa. The first site, encompassing 42.9 acres, is situated off Elliot Road, right next to the Apple data center. The second site, spanning 71.3 acres, is located at 10464 E. Pecos Road, just east of the Legacy Park sports complex. These prime locations offer Amazon strategic advantages in terms of proximity to key players in the industry and accessibility for their operations.

Acquisition of the Mesa Sites by Amazon

To secure these highly valuable sites, Amazon made significant acquisitions in December 2021. The Elliot Road property was purchased for a noteworthy sum of $16.9 million, while the Pecos property came in at just over $18 million. This demonstrates Amazon’s commitment to investing in the Mesa area and its anticipation of the immense potential the region holds for data center development.

Previous Considerations

Interestingly, the Pecos Road site was once under consideration for a logistics building project named “Project Cork.” The project envisioned a staggering 700,000 square foot (65,032 square meter) logistics facility. However, plans changed, leading to Amazon’s acquisition of the site for its data center venture. This shift in purpose highlights the growing demand for advanced technological infrastructures and the shift towards cloud computing services.

Furthermore, the Elliot Road site, which Amazon acquired, was initially earmarked for a logistics facility according to the AZTechCouncil. However, Amazon’s decision to repurpose the site for a data center reflects the company’s strategic vision and understanding of the rapidly evolving market dynamics.

Phoenix as a data center hub

Phoenix has emerged as a major hotspot for data centers, with the Mesa area playing host to several prominent industry players. These include technology giants such as Microsoft, Google, Apple, and NTT, all of whom recognize the region’s immense potential and choose to establish their data center operations here.

The concentration of such influential market players highlights the attractiveness of Phoenix as a data center hub. The region offers a favorable business climate, a robust energy infrastructure, and a talented workforce necessary for the successful operation of data centers. This collective presence and expertise contribute to the area’s overall appeal and stimulate further investment and growth.

Significance of Amazon’s expansion

Amazon’s decision to expand its data center footprint in Mesa carries significant implications. This move serves as a testament to the area’s tremendous potential and the growing demand for cloud and hyperscale computing services. It reinforces the growing prominence of Phoenix as a vital player in the data center industry.

As a cloud service provider and one of the largest e-commerce companies globally, Amazon’s investment in data centers underscores its commitment to providing scalable, efficient, and reliable cloud computing services. The expansion will also generate job opportunities within the Mesa community, creating a positive economic impact.

Amazon’s ambitious plans to develop data centers in the Mesa area of Phoenix highlight the momentum building within the region’s data center industry. With acquisitions of prime locations and repurposing of sites, Amazon is poised to strengthen its presence alongside other industry giants. Phoenix’s remarkable rise as a data center hub, coupled with Amazon’s strategic expansion, signals a bright future for the area’s growing cloud and hyperscale computing market. This development will undoubtedly spur further innovation, investment, and economic growth in the region, cementing Phoenix’s position as a premier destination for data center operations.

Explore more

Creating Gen Z-Friendly Workplaces for Engagement and Retention

The modern workplace is evolving at an unprecedented pace, driven significantly by the aspirations and values of Generation Z. Born into a world rich with digital technology, these individuals have developed unique expectations for their professional environments, diverging significantly from those of previous generations. As this cohort continues to enter the workforce in increasing numbers, companies are faced with the

Unbossing: Navigating Risks of Flat Organizational Structures

The tech industry is abuzz with the trend of unbossing, where companies adopt flat organizational structures to boost innovation. This shift entails minimizing management layers to increase efficiency, a strategy pursued by major players like Meta, Salesforce, and Microsoft. While this methodology promises agility and empowerment, it also brings a significant risk: the potential disengagement of employees. Managerial engagement has

How Is AI Changing the Hiring Process?

As digital demand intensifies in today’s job market, countless candidates find themselves trapped in a cycle of applying to jobs without ever hearing back. This frustration often stems from AI-powered recruitment systems that automatically filter out résumés before they reach human recruiters. These automated processes, known as Applicant Tracking Systems (ATS), utilize keyword matching to determine candidate eligibility. However, this

Accor’s Digital Shift: AI-Driven Hospitality Innovation

In an era where technological integration is rapidly transforming industries, Accor has embarked on a significant digital transformation under the guidance of Alix Boulnois, the Chief Commercial, Digital, and Tech Officer. This transformation is not only redefining the hospitality landscape but also setting new benchmarks in how guest experiences, operational efficiencies, and loyalty frameworks are managed. Accor’s approach involves a

CAF Advances with SAP S/4HANA Cloud for Sustainable Growth

CAF, a leader in urban rail and bus systems, is undergoing a significant digital transformation by migrating to SAP S/4HANA Cloud Private Edition. This move marks a defining point for the company as it shifts from an on-premises customized environment to a standardized, cloud-based framework. Strategically positioned in Beasain, Spain, CAF has successfully woven SAP solutions into its core business