Report: Microsoft looking to build a large 575K sq. ft. data center in Phoenix

microsoft-headquartersA recent report by Phoenix Business Journal suggests that Microsoft is shopping for a large piece of commercial real estate in the Phoenix area where the software giant wants to build a large data center.

Currently Microsoft operates over 100 data centers around the world, and is continually looking to expand as the cloud business grows. Arizona seems to be of interest to Microsoft as the state has been proactive in creating a favorable tax climate for such large companies to house their data centers in.

The report says “Microsoft data center could be landing at Union Hills Drive near Interstate 17.” This particular location is around 575,000 square feet “and the transaction may be completed via private equity firms and other data center entities even though it will be Microsoft operations, according to the industry executive who asked not to be named.”

Another official told the Journal that a large unnamed client is “looking for data center space totaling as much as 300,000 square feet in the East Valley.”

Although it’s not confirmed, Microsoft is believed to be this mystery client looking for data center space. Arizona’s Sen. Jeff Dial, R-Chandler, who is also a legislator advocating changes to the state’s tax benefits for the data industry, has actually confirmed that “Microsoft is one of the technology companies advocating adjustments to Arizona data center tax breaks created in 2013.”

According to the report, “Dial has introduced a data center proposal amending 10- and 20-year tax breaks on equipment. He said Microsoft has said the changes and a favorable tax climate would help the chances of the Redmond, Washington-based company landing in Arizona.”

Microsoft declined to comment on any specific purchases but their spokesperson told the Journal the company is “anticipating growth in its cloud infrastructure and we are continuously exploring new potential data center locations across the world.”

Source: Phoenix Business Journal