Phoenix/ Real Estate & Development
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Published on August 09, 2024
Buckeye Set for Economic Boom with Green Light on $20 Billion Data Center CampusSource: Unsplash/Taylor Vick

The City of Buckeye is set to become the site of a data center behemoth after final approvals were issued for a $20 billion campus development. As detailed by the Business Journal, the ambitious project spearheaded by Denver-based Tract will span nearly 2,000 acres, poised to house both hyperscale and wholesale data center operators within its expansive confines.

Described by Buckeye Mayor Eric Orsborn as a potential "game changer," the complex is anticipated to not only redefine the West's data infrastructure landscape but also propel economic momentum in the region. Unveiling a major boost to job prospects, "the massive project is expected to be built out in multiple phases over 15 years and generate 2,000 construction jobs and an estimated 500 full-time jobs," according to information shared by the Business Journal.

The Buckeye City Council, endorsing the project on August 6, agreed to reimburse Tract up to $50 million in public infrastructure costs, contingent upon the developer generating $60 million in city revenue. The council's decision has cleared a path for what Mayor Orsborn claims could be the largest data center complex in the Western United States, echoing the economic engines of sizable complexes in Virginia.

Cementing this major shift, a major plan amendment christened the "Buckeye Tech Corridor" has added an official stamp on the city's dedication to implementing the project. Executives at Tract have signaled an investment minimum of $100 million to secure infrastructure essentials such as water and power, which will be integral to luring major data center operators to Buckeye, a strategic location described by Graham Williams, chief investment officer for Tract.

While the project has been two years in development, the path to groundbreaking at the Cipriani site has been anything but direct. Anita Verma-Lallian, CEO of Arizona Land Consulting, commenced rezoning initiatives for industrial purposes shortly after acquiring the land in 2022. "Now the traffic is much less, water requirements are lower, so a lot if it was understanding the infrastructure needed and figuring that out with the city," Verma-Lallian explained in her interview with Business Journal.

Tract, which also owns over 20,000 acres across the U.S. for similar developments, is strategically planning these campuses. The data center titan chose Buckeye after retracting its interest in a Maricopa County island site following pushback from neighboring municipalities. Tract, aligning with feedback on the most appropriate locale for such an expansive infrastructure project, opted for the previously planned Cipriani residential development site, now repurposed for industrial growth.

In a statement made to the Business Journal, Williams highlighted Tract's negotiations with Arizona Public Service and the City of Buckeye to secure power and water, underscoring the project's commitment to long-term viability and sustainability in meeting the burgeoning demand for data infrastructure across the Southwest and beyond.

Phoenix-Real Estate & Development