Phoenix data center boom gets bigger as NTT’s speculative project advances

Article originally posted on CoStar on May 27, 2026

A massive project moving through the approval process is adding to Phoenix’s growing list of data center developments.

Japan-based NTT Data Group Corp.’s plans for a seven-building, 2.2 million-square-foot campus in the suburb of Mesa received a recommendation of approval from the city’s planning and zoning board earlier this month. The city council will have the final say.

No users have publicly signed on to use NTT’s proposed data center upon completion, but the firm wrote in its project narrative that the campus is expected to serve as a catalyst for continued growth in technology while complementing and supporting economic development efforts in southeast Mesa.

Metropolitan Phoenix is home to a heavy concentration of data center operators and developers. Tech giants like Google, Meta Platforms and Apple all have a presence in the region.

At 1.3 million square feet, Apple has the largest single data center building across Phoenix. On the other side of town, Microsoft is a major player in Goodyear and El Mirage, with over 2 million square feet of existing or under-construction data centers, according to CoStar.

As demand for artificial intelligence and cloud computing accelerates, construction costs for modern data centers have surged. Facilities these days require massive upfront spending on land, power support systems and specialized construction, with large campuses often running into the billions of dollars.

Industry estimates peg total capital needs at as much as $1 trillion over the next five years.

“In the U.S. alone, we project average spending on data center construction of more than $70 billion per quarter from 2025 to 2028,” according to a report from S&P Global Ratings. “Numerous firms are hoping to enter the sector, and those with access to capital and experience in securing land, power and permits will be better positioned for success.”

NTT made a major investment in the land alone in March 2025, when it paid nearly $300 million for the 170 acres near the northeast corner of Pecos and Crismon roads on which it plans to build its campus.

The proposed project would be NTT’s second in Mesa, with the first being another seven-building campus that spans more than 1.6 million square feet.

Project documents said that water will be provided to the property from the city of Mesa initially and that NTT has plans to build on-site water infrastructure to support the data halls. Each of the buildings will be designed to limit sun exposure and have a closed-loop water cooling system.

The project also calls for a private power substation and a new substation owned and operated by a local utility company.

CoStar is tracking at least 60 existing data centers across Phoenix, totaling about 15 million square feet — with a development pipeline containing tens of millions of square feet more.

Billions of dollars in project development and tax revenue, as well as thousands of construction jobs, come with these plans — with no end in sight.