Why Phoenix Arizona for Data Centers
Extremely low risk from natural disasters
+ Arizona’s location gives it a low risk of earthquakes, tsunamis, hurricanes and wildfires, according to data from the National Oceanic and Atmospheric Administration, University of Miami, and U.S. Geological Survey. Arizona offers less risk of downtime and greater physical security.
Great place to do business
+ The cost of doing business in Arizona is below the national average, according to PriceWaterhouseCoopers. Greater Phoenix scores below the national average in cost of living categories, including groceries, housing, utilities, transportation and healthcare. The Greater Phoenix Economic Council (GPEC) point to the lure of affordable and diverse housing and low personal income taxes and property taxes.
Phoenix Market
+ The Phoenix Market boasts unique, compelling reasons to host a data center in the metropolitan. A few of them below:
Cost of Power
+ The cost of electricity across Greater Phoenix is an approximate range of $.065 to $.069 per kilowatt hour. With the power rates in Silicon Valley, California is ranging from $0.11 to $0.15 per kilowatt hour, Arizona offers more than 50% in power cost savings.
Phoenix Energy Supply
+ Arizona’s diverse fuel supply mix decreases the risk of fuel unavailability, smooths our prices and safeguards against regulation. The Palo Verde Nuclear Generating Station just outside of Phoenix is the largest nuclear facility in the country rated 3,937 net MW per year.
Taxes
+ Sales tax exemptions for sales and use taxes are provided for data center equipment for owners, operators and colocation tenants of computer data centers who are certified by the Arizona Commerce Authority (ACA).
+ The Phoenix Market boasts unique, compelling reasons to host a data center in the metropolitan. A few of them below:
Cost of Power
+ The cost of electricity across Greater Phoenix is an approximate range of $.065 to $.069 per kilowatt hour. With the power rates in Silicon Valley, California is ranging from $0.11 to $0.15 per kilowatt hour, Arizona offers more than 50% in power cost savings.
Phoenix Energy Supply
+ Arizona’s diverse fuel supply mix decreases the risk of fuel unavailability, smooths our prices and safeguards against regulation. The Palo Verde Nuclear Generating Station just outside of Phoenix is the largest nuclear facility in the country rated 3,937 net MW per year.
Taxes
+ Sales tax exemptions for sales and use taxes are provided for data center equipment for owners, operators and colocation tenants of computer data centers who are certified by the Arizona Commerce Authority (ACA).
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Costs of doing business in Phoenix are 3.8 percent lower than the U.S. baseline of 100, which reflects average business costs of New York City, Los Angeles, Chicago and Dallas-Fort Worth.
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20-year exemption from sales tax
+ With Arizona’s premier Tax Incentive program, companies can qualify as a “sustainable redevelopment project” and their tenants can receive a 20 year sales tax exemption on IT equipment if they contract for at least 500 kW per month for over two years.
An ever-growing city
Over the last 35 years, the population of Metro Phoenix has nearly tripled, growing from 1.6 million people in 1980 to over 4.8 million residents today. People from around the world continue to be drawn to the area for its exceptional quality of life including warm weather, quality higher education opportunities, outstanding employment opportunities and affordable cost of living.
The employment base in Phoenix more than quadrupled over the last 40 years from 430,100 employees in 1974 to 2,240,950 employees by mid-year 2020.
The employment base in Phoenix more than quadrupled over the last 40 years from 430,100 employees in 1974 to 2,240,950 employees by mid-year 2020.
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Reliable and affordable power supply
+ Arizona public utilities generate power from a variety of stable sources and charge substantially less per kWh than other Western states, according to the U.S. Energy Information Association. They also have tariffs specifically designed to allow for renewable energy supply to specific consumers.
Connectivity is strong+ Internet connectivity is robust with a heavy concentration of top-tier telecommunication providers. According to the Ookla Net Index, Internet speed and mobile networks in the greater Phoenix region are among the country’s fastest. Plus, a high concentration of network providers engenders competition.
Non-stop flights to every major American city+ Through Phoenix Sky Harbor International Airport
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