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Demand for data center demand is rapidly rising around the globe, and Western US cities are among the top markets. A new report from JLL calls data center demand “insatiable” and lists Phoenix, Las Vegas and Los Angeles as the top markets for data center absorption in 2018. In fact, Phoenix ranked third in the world for absorption, behind Northern Virginia and London. The market had 51 megawatts in absorption activity last year.

“Data center demand in Phoenix is still fueled by all of the benefits that made it a top tier market in the first place—low cost of power, lack of natural disasters and cheap dirt compared to other primary data center destinations like Virginia and Northern California,” Mark Bauer, managing director at JLL, tells GlobeSt.com. “This is enhanced by the Arizona Computer Data Center program, which abates sales and transaction privilege taxes for qualifying data center operators, developers and end user customers. It is one of the most attractive data center-centric programs in the country.”

Kelsi Maree Borland

Kelsi Maree Borland is a freelance writer and editor living in Los Angeles whose work has appeared in such publications as Travel + Leisure, Angeleno and Los Angeles Magazine.

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