Google Starts Work on $1 Billion Data Center in Mesa

Article originally posted on Phoenix Business Journal on July 12, 2023
A conceptual rendering of the entry way to Google's $1 billion data center campus in Mesa. The project was referred to its code name "Red Hawk" throughout a recent meeting in the city of Mesa

A conceptual rendering of the entry way to Google’s $1 billion data center campus in Mesa. The project was referred to its code name “Red Hawk” throughout a recent meeting in the city of Mesa

 

Google is moving dirt on its $1 billion data center campus in southeast Mesa.

The project, which was often referred to by its codename “Redhawk,” is being built on more than 185 acres near the northwest corner of Sossaman and Elliot roads. Google said construction on the site started on Monday. It did not offer an expected timeline for completion.

In a statement, Google said data centers, including the one built in Mesa, will power the company’s tools like Search, Gmail, Maps and ongoing artificial intelligence innovation.

“We are pleased to see Google making this tremendous investment in Mesa’s Elliot Road Technology Corridor as they break ground on their cutting-edge, air-cooled data center campus,” Mesa Economic Development Director Bill Jabjiniak said in a statement to the Business Journal. “Mesa’s investment in critical infrastructure has made it possible for quality technology companies and advanced manufacturers to locate and thrive, strengthening Mesa’s economy by bringing high-paying jobs and substantial investments.”

Last month, the site plan for the first phase of Google’s data center was heard by Mesa’s design review board. That first phase includes a 288,530-square-foot data center building with a utility switchyard, a medium voltage substation that services the data center, a site entrance with a security kiosk, public road improvements and an employee office building.

The site plan calls for two additional phases for a total of 750,000 square feet.

Google inks GPLET deal with Mesa

Google purchased the land in a 25-year government property lease excise tax, or GPLET, agreement with Mesa, meaning it will deed the land to the city for 25 years. Mesa City Council unanimously approved a rezoning for the site in 2019.

Under a GPLET, a city government holds the deed to the land but leases or allows private development on the parcel, meaning the developers and businesses on the property pay lower property taxes than if they owned the land.

The GPLET agreement puts Google on the clock to complete the construction of the first phase of the data center by July 2025. Per a development agreement with Mesa, Google must also spend $600 million in capital expenditures and $180 million in taxable construction costs.

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