A new data center development is being proposed in Phoenix, Arizona.
The Ahwatukee Foothill News and BizJournal report Menlo Equities is planning a new data center in the Ahwatukee area of southern Phoenix.
Menlo Equities, via its Thistle Income Partners subsidiary, is aiming to replace four largely vacant single-story office buildings at the Thistle Landing Office Park with a new data center campus. A planned end customer wasn’t named.
The application received approval from the Ahwatukee Foothills village planning committee on January 22. It will go before the planning hearing officer on February 21 and then to the City Council at a later date.
Set on a 40-are site on Thistle Landing Drive between 50th and 48th streets, the development will include five two-story buildings as well as an on-site substation.
The project — called East Thistle Data Center — will also include a mix of uses including office space for research and a two-acre community park.
"The intent is to complement and support the existing technology and innovation companies/campuses located in the Ahwatukee area," documents submitted to the city said. "The project will also provide a home to advanced internet-based businesses and those that need to locate in proximity to high-capacity computer server facilities."
The office buildings date back to 1998. Menlo Equities acquired the site in 2015 across two transactions totaling $52.75 million.
Though Phoenix is a major data center hub, the Ahwatukee area hasn't seen as much interest as Mesa to the east.
Real estate firm Menlo owns a number of data centers across California, Virginia, Illinois, Massachusetts, Tennessee, and Texas. The company also has offices across Arizona in Phoenix and Tempe.