Arizona Land Consulting has acquired land in Phoenix, Arizona that it aims to sell to a data center developer.
As reported by Bloomberg and BizJournal, the Phoenix real estate firm recently acquired 160 acres in the Buckeye area for $21.7 million, according to county records.
The land, at the northeast corner of Johnson Road and Southern Avenue, is close to the 2,100-acre site Arizona Land recently sold to data center park developer Tract.
"We wanted to be situated close to them, I think it's a great data center site in the future," Anita Verma-Lallian, CEO of Arizona Land Consulting, told BJ.
“We’re seeing a huge increase of investors wanting to get into the space – there’s family offices, high net worth individuals, some private equity firms, a wide spectrum of people that we’re working with right now,” she added to Bloomberg.
The site could reportedly host up to 3.5 million sq ft (325,160 sqm) of data center space. Arizona Land aims for development to start within the next few years, and predicts investment in the site could range from $1 billion up to $4 billion.
As well as potentially selling the land to a developer, Verma-Lallian said the company is also considering leading the development of the site as her company looks to move into the development side of real estate in addition to land acquisitions.
"There is a place for data center development, it just needs to be looked at strategically and responsibly," said Suzanne Boyles, Buckeye's economic development director. "It's also next to the Buckeye Municipal Airport, so it's a complimentary use to the growth and expansion of aviation."
Phoenix is a major data center market, though mostly concentrated around the Mesa area. The likes of EdgeCore, Meta, Google, Digital Realty, Centersquare, Flexential, NTT, CyrusOne, Prime, Aligned, Iron Mountain, QTS, EdgeConneX, DataBank, Vantage, Compass, AWS, Lumen, ColoHouse, Cogent, and more have a presence in the area. Microsoft also operates a cloud region out of the area.
