Scroll Top


August 2023 Phoenix Market Update blog cover image

Data Centers and Beyond: Why Arizona is a Hotspot for Business Development

Arizona is seeing a growth in employment as cities work to improve energy storage infrastructure. Read about the Phoenix Airport infrastructure improvements currently underway, new eateries making their debut in the Valley, and why Arizona is becoming a hotspot for data center development and manufacturing jobs.

Global energy storage company will source batteries from planned Arizona factory

Phoenix, Arizona can look forward to exciting developments in energy storage with the partnership between Energy Vault and KORE Power Inc. This partnership brings together the expertise of two reputable companies in the field, with plans to acquire 1.3 gigawatt hours of lithium-ion batteries in 2025, with an increase to 7 gigawatt hours in 2027. With KORE Power’s manufacturing facility set to be operational in Buckeye by 2025, the potential for production expansion to 18-gigawatt hours is a huge positive for the local economy. Not only will the factory employ 1,250 people initially, but it also has the potential to grow to 3,000.


Furthermore, the strategic advantage of this partnership is significant for grid-scale energy storage solutions, which could help power Phoenix’s energy needs. Siemens Smart Infrastructure’s involvement also highlights the elevated level of technology being used in the production of these batteries, providing electrical infrastructure and energy management automation for KOREPlex’s production operations. Overall, Phoenix has much to gain from this partnership between Energy Vault and KORE Power Inc.

People playing pickleball at Chicken n Pickle
Chicken N Pickle opens its first Arizona location

Phoenix residents now have access to an exciting new entertainment option with the opening of Chicken N Pickle’s first Arizona location at the Westgate Entertainment District in Glendale. With 65,000 square feet of space, there is plenty to explore, from the chef-driven restaurant to the sports bar, indoor and outdoor pickleball courts, and yard games. Not only does this mean a fun and unique way to spend leisure time, but the location also offers potential job opportunities, with over 150 jobs being generated. All in all, Phoenix locals can enjoy all of these incredible benefits right in their backyard, making for an exciting addition to the city’s offerings.

Phoenix playing a key role in total US data center development, report says

Phoenix is thriving as a leading destination for data center development, thanks to several factors that make it attractive to developers and major companies alike. Its prime location on the West Coast, coupled with affordable land, has propelled the city into becoming a major player in this sector. A recent report by Cushman & Wakefield identified Phoenix as one of the six key markets responsible for the vast majority of data center development in the US in 2022, highlighting its importance in this industry.

Currently, Phoenix has about 400 megawatts of data center capacity under construction or planned, which could soon push its total capacity to a gigawatt. Demand for data centers in Phoenix remains high, resulting in a low vacancy rate of under 3%. The city has also attracted several major companies such as Apple, Meta Platforms Inc., and Google, who have established data centers in the area.

Phoenix is also starting to expand beyond its traditional areas and gaining interest for future data center projects in the West Valley, particularly Glendale, and Goodyear. As developers focus on sustainable practices, such as reducing water usage and implementing water-cooling technologies, they have found the environment in Phoenix very conducive to these endeavors. Additionally, Phoenix’s available land makes it easier for developers to build from the ground up, which is advantageous, as conversions of office space into data centers are less prevalent in Phoenix compared to other markets.

As cloud computing and enterprise needs continue to fuel data center growth in the US, Phoenix is expected to experience continued expansion in this industry, further strengthening its reputation as a top data center destination.

Phoenix-Mesa Gateway Airport terminal expansion reaches topping-out milestone

Phoenix residents and travelers can look forward to several positive outcomes from the Gateway Airport terminal expansion and modernization project. The new 30,000-square-foot facility, partially funded by the Bipartisan Infrastructure Law, promises to deliver a modern, energy-efficient, and ADA-enhanced commercial passenger experience.

Phoenix Mesa Gateway Airport plane on tarmac

McCarthy Building Companies’ efforts to minimize disruption during construction demonstrate a commitment to serving the community. Gateway Airport is a vital contributor to the regional economy, and its growth is a testament to its popularity among domestic travelers. With nonstop jet service to over forty-five destinations in the U.S. and Canada, Gateway Airport is a hub of transportation, and its modernization project will serve as a major step forward in expanding the airport’s capacity.

Phoenix-Mesa Gateway Airport’s record-breaking passenger numbers for fiscal year 2023 are a significant positive for the city. With 1,917,911 passengers and a 5.6% increase from the previous year, the airport’s growth provides economic benefits to the greater Phoenix area.

Arizona added 13,000 clean-energy jobs in the past year, 7th best in the US

Phoenix, Arizona, is set to benefit from the state’s success in clean energy job growth. With 13,000 new jobs added in the past year, Arizona now ranks seventh among states, bringing over $8.1 billion in investment for clean-energy projects. This includes over 6,400 new jobs and $1.25 billion in investments announced in Arizona’s 4th Congressional District, ranking fourth in the nation. The investments are expected to improve outdated electric grids and increase overall efficiency, providing a boost to local economies.

The report emphasizes that these jobs span both red and blue states and are part of a $275 billion investment in local economies. Most of the new jobs in Arizona are in battery and electric vehicle manufacturing, along with some related to solar and electrical grid projects. Overall, the Clean Energy Plan is bringing manufacturing jobs back to the United States and promoting a more sustainable future for all.

Mountainside Fitness is set to start work on the biggest Arizona fitness center

Phoenix is about to get fitter with the largest Mountainside Fitness Center coming to Scottsdale Towne Center. The center’s strategic location in the bustling Target store area is a win-win situation for all. With investments worth $4 million, the fitness center plans to revamp the entire building and offer more facilities such as locker rooms, group fitness studios, and basketball/pickleball courts.

The center is expected to create employment opportunities for 150 people, adding value to the local economy. With twenty locations already in Phoenix, the addition of the 21st and largest center shows the company’s commitment to serving the community. Long-term plans include renovating health clubs with more outdoor work areas, pickleball courts, and increased functional training space. The fitness center is even exploring new property expansion opportunities, demonstrating its commitment to continuing growth.

Arizona jobs are on the rise again

Since February 2020, the state has added a staggering 163,500 jobs. With an annualized growth of 2.2%, the state’s employment is expected to reach 3,751,905 jobs by 2030. This surpasses the United States’ projected employment growth of only 0.7%.

Phoenix’s tremendous job growth is seen particularly in the fastest-growing industries, such as insurance agents, industrial truck and tractor operators, restaurant cooks, and home health aides. Additionally, the local economy has shifted to a more balanced state thanks to recent manufacturing announcements from companies like Intel and TSMC.

The city’s unemployment rate is impressively low at around 3%, and its gross domestic product (GDP) is up by 7% from the previous year. GPEC is also doing its part by bringing in new businesses, creating thousands of jobs and billions of dollars in capital investment.

Arizona mountains and Cacti
Arizona’s Leading Semiconductor Talent Pipeline

Phoenix is poised to benefit greatly from the booming semiconductor industry in Arizona. With over $60 billion in investments announced since 2020, Arizona has become the top state for semiconductor sector investments, attracting significant interest from industry leaders. The state’s robust talent pipeline, powered by community colleges and universities like ASU and UA, positions Arizona as a future workforce leader, meeting the demands of the rapidly growing semiconductor industry.

Governor Hobbs has launched the BuilditAZ Initiative, doubling registered apprentices in construction and trades by 2026. Intel, TSMC, and Maricopa Community Colleges have joined hands to introduce the Semiconductor Technician Quick Start program, grooming students for technician careers in the semiconductor industry. Arizona’s construction workforce is expanding, driven by the growing semiconductor sector. Finally, Phoenix boasts innovative education institutions such as ASU and NAU that prepare students for high-demand careers, such as semiconductor manufacturing training programs, in collaboration with industry leaders.

In conclusion, Arizona’s investment in energy storage, data center development, clean energy job growth, and various other industries are paving the way for continued economic growth. The partnerships and investments from major companies like Energy Vault, KORE Power, Apple, and Google show that Arizona is an attractive destination for business and industry. Furthermore, the expansion of Gateway Airport and Mountainside Fitness, along with job growth in various sectors, demonstrates the city’s resilience and determination. With a focus on innovative education and talent pipelines, Arizona is well-positioned to continue as a top player in the nation’s economy.

Since 2019, Rise48 Equity has completed over $2.03 Billion+ in Total Transactions, and currently has $1.59 Billion+ of Assets Under Management located in Phoenix and Dallas.