Article originally posted on az on Oct 27 2026

Semiconductor industry investment and demand for data centers are fueling Phoenix’s reputation for economic growth.

Metro Phoenix has been the top market for semiconductor investment since 2020 and ranks fourth globally in data center operating capacity, according to the Emerging Trends in Real Estate report released by the Urban Land Institute and PwC. Greater Phoenix was identified as a market to watch in 2027, buoyed by advanced manufacturing jobs and data center investment. The trajectory is a strong departure from Phoenix’s past as a market driven by affordability.

“What began as a story of population growth and affordability has matured into one increasingly defined by advanced manufacturing, semiconductors, logistics, health care and data infrastructure,” the report states.

The Phoenix region now has about 189,000 semiconductor-related jobs, according to the report. The Arizona Commerce Authority reports the state has seen about $319 billion in semiconductor industry investment since 2020. The lion’s share of that investment, $265 billion, comes from Taiwan Semiconductor Manufacturing Co.’s campus under construction in north Phoenix.

TSMC’s growth has fueled ancillary development in the region, including the $7 billion Halo Vista project under construction next to TSMC’s campus.

The Phoenix metro has about 1.6 gigawatts of data center capacity under construction, according to the report, and the industry has fueled about $7.8 billion of investment from companies buying and building data center facilities.

Net migration and population growth in metro Phoenix have slowed, but the Valley’s population has grown by 2.8% over the past two years. However, home ownership has become less attainable, forcing people who would prefer to buy to continue renting instead.

The Valley has about 16,000 apartment units in the construction pipeline, meaning under construction or planned, and about 18,000 units have been leased so far in 2026, according to the report.