Data Center Industry in Arizona

Data centers are a vital component of Arizona’s modern economy. Metro Phoenix is now considered the second-largest data center market in the United States, but the benefits provided by the industry are felt in many communities across the state. In addition to diversifying and stabilizing Arizona’s economy , data centers are supporting the clean energy transition in Arizona and employing the latest energy and water-saving technologies. 

Read on to learn more about the positive economic and community benefits of Arizona’s data center industry.

Benefits Beyond Connectivity

Communities benefit from data center investment and continued development.

Economic Impact

Data centers are significant drivers of economic growth in Arizona. The industry contributed a total of $8.6 billion to Arizona’s GDP in 2021, a 23% increase from 2017. [1]

Job Creation

In addition to the direct jobs inside Arizona data centers, the data center industry supports a robust business ecosystem. In 2021, Arizona’s data center industry created and supported a total of 72,210 jobs.  [1]

Tax Revenue

Between 2017 and 2021, the data center industry generated $2.3 billion in total state and local taxes for Arizona. [1]

Source:

[1] PwC, Economic, Environmental, and Social Impacts of DataCenters in the United States, September 2023

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