Phoenix, AZ, November 10, 2020 – phoenixNAP®, a global IT services provider offering security-focused cloud infrastructure, dedicated servers, colocation, and specialized Infrastructure-as-a-Service (IaaS) technology solutions, today announced it is on track for its best year in data center colocation sales to date. The company earned nearly 20 percent more revenue from colocation services in the first three quarters of 2020 vs. the same period last year. This growth further establishes Phoenix as a strategic location for data center colocation and phoenixNAP as one of the leading service providers in the region.
According to Global Data Center Market Comparison by Cushman and Wakefield, Phoenix is one of the world’s top data center markets based on criteria such as real estate, physical considerations, environmental risk, and land price. The publication includes Phoenix in the top six markets for government incentives, while its land costs are among the lowest in the study. The disaster readiness of the area, availability of skilled staff, and booming startup economy further position Phoenix as an optimal location for growing presence in the U.S. Southwest.
Located at the intersection of two major independent fiber rings in Phoenix, phoenixNAP’s data center is strategically positioned to deliver advanced redundancy, exceptional connectivity, and unmatched stability. The 160,000 sq. ft. facility houses over 40 domestic and international carriers, providing global connectivity and net neutrality. phoenixNAP is also the only AWS Direct Connect location in the region, enabling businesses to access Amazon public cloud services via a fully dedicated, private network.
In 2020, another major hyperscale cloud services provider established a presence in phoenixNAP’s data center. This addition will be officially announced in the following months, but it is another indicator of phoenixNAP’s dominance in the colocation ecosystem of the Southwest.
“The demand for data center space in Phoenix has been steadily growing for the past few years and there are numerous reasons for this,” said Ian McClarty, President at phoenixNAP.
“The overall costs of service are comparatively lower than in most nearby markets, while the disaster-readiness is on a much higher level. Compared to the California market, for example, Phoenix offers lower service costs and zero disaster risk, which makes it a preferred choice for servicing U.S. West Coast markets. This year is particularly dynamic with the introduction of work from home policies that forced many organizations to reevaluate their IT infrastructure costs and security.
We believe this is one factor that influenced the increase in demand for our colo services, the other one being our continued effort to improve our offer quality, connectivity, and overall security. Over the past few years, we added multiple new carrier options, expanded our global presence, and diversified our service portfolio to meet the evolving needs of businesses all over the world.”
The aggressive tax exemptions for data center equipment under Arizona’s Computer Data Center Program (CDCP) and numerous other government incentives make access to IT equipment affordable, lowering the cost of colocation services. Besides being one of the fastest-growing data center markets, Phoenix is also an exploding business hub. Thanks to low residential, energy, and IT infrastructure costs, it is an affordable location to set up and run a business.
As one of the best-established data centers in the city, phoenixNAP offers high quality data center services at opex-friendly prices. Its wide portfolio of solutions, proven reliability, global connectivity, and skilled staff enable it to meet the widest variety of business needs. Its Phoenix facility is a home to businesses operating in a range of different industries – from aerospace and genetic research to media streaming and SaaS. The company also actively supports local non-profit organizations, donating IT resources to support their mission.
In 2020, phoenixNAP welcomed multiple new colocation clients, some of which are globally recognized companies. Due to the increased demand, the company is also opening a new Meet-Me-Room in the facility that will further increase the diversity of carrier options available.
Learn more about phoenixNAP data center colocation in Phoenix.
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