Arizona has long been known as one of the most climatologically stable states in the U.S., with a lack of earthquakes, hurricanes, tornados, and blizzards making it convenient to engage in business operations every day of the year. That’s one reason the state is home to more than 50 major data centers, both co-location and enterprise, offering some of the nation’s most advanced fiber optic network connections.

Read more about our Computer Data Program, which encourages computer data center (CDC) operation and expansion in Arizona.

Advanced Business Services

Research & Utilities

Research for fiber optics’ new technology takes place in Tucson, known as Optics Valley. Some of America’s largest fiber optic network paths go directly through Tucson and Phoenix, providing a strong connection to the world along with the advantage of proximity to futuristic technologies under development.

While traditionally some of the highest costs of operating a data center include power usage, water and electricity, Arizona’s electricity prices are among the lowest in the southwest. As of 2014, nearly 10% of Arizona's net electricity generation came from renewable resource (U.S. Energy Information Administration).


Data Center Success Stories

Examples of major colocation data centers include:

  • CyrusOne, which boasts nearly 110MW of power through an onsite substation. At full build-out, this facility will be the largest of its kind.
  • Digital Realty, one of the largest operators of co-location data centers in Arizona. DR collectively has more than 1.2 million square feet of data center properties spread over seven centers.
  • IO Data Centers in Phoenix and Scottsdale. At 538,000 square feet, IO Phoenix is the largest commercially available data center in the United States to achieve Tier III Design Certification from the Uptime Institute.
    • Notably, IO Data Centers manufactures its IO.Anywhere® modular data centers in Arizona. The modules allow its user to flexibly deliver standard and secure increments of power, cooling, and IT capacity on a just-in-time basis.

Major enterprise data centers in Arizona include:

  • American Express in Northwest Phoenix, which houses approximately 1,600 employees. This data center is built below grade level of AE’s Technology Resource Center West.
  • EBay/Paypal, which operates one of the world’s most efficient data centers, able to use 76-95% of total power towards computers (vs. a U.S. average of 57%). In Arizona; PayPal has approximately 1,500 employees in the Greater Phoenix region.
  • Edward Jones has operated a corporate data center in Arizona since 2000, which has resulted in the relocation of the company’s national training center and regional headquarters to Greater Phoenix. 
  • GoDaddy, which has various state-of-the-art data centers across Greater Phoenix and in 2013 broke ground for its newest facility, which will house a data center and approximately 1,300 employees located in Tempe. Arizona centers boast a DWDM Ethernet Backbone that operates at 20 gigabits per second.


Potential Incentives


Financial Services & Business

Arizona’s business environment is thriving, with major companies like Wells Fargo, Chase, State Farm, Union Bank, and Silicon Valley Bank all announcing major expansions in 2013 and 2014. Approximately 608,000 direct jobs at more than 45,000 establishments were in the Financial Activities and Professional & Business Services industries during 2015, according to the Bureau of Labor Statistics.

Business schools within the state are consistently ranked among America’s top ten, offering leading programs in areas such as Entrepreneurship, Supply Chain Management, Management Information Systems, and Information Technology. The graduates of these schools are leading the way into the future of the services industry -- integrating technology and finding new ways to expand a company’s promotional ability.