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Phoenix July 2023 Blog Quote

Phoenix Designated as a WorkForce Hub and its Unprecendented Growth in Multiple Industries with Corporate Expansions

Arizona is experiencing rapid growth as it becomes a hub for many industries. Read about the hub Phoenix has become for life science, semiconductor companies, manufacturers and data centers all whilst raising their ranking in sustainability.

Phoenix metro growing quickly as hub for life sciences researchers, CBRE report finds

Phoenix’s life sciences business is thriving, and it shows no signs of slowing down in 2023. The Phoenix metropolitan area has emerged as a hotbed of life-sciences research talent, drawing major funding from the National Institutes of Health (NIH). Arizona State University (ASU) is the state’s largest NIH grantee, with 4,130 life sciences researchers. According to the research, Phoenix has the nation’s fastest rate of growth for new life sciences graduates. 

Phoenix’s designation of its third bioscience hub at the Park Central development exemplifies the area’s pattern of life science expansion. Furthermore, Phoenix has a cheaper cost of living than major life sciences research hubs, making it an appealing destination for researchers. According to CBRE’s analysis, demand for life-sciences research professionals has increased by 87% over the last two decades, hitting pre-pandemic levels in 2023. Phoenix is clearly on the rise as a prominent player in the life sciences industry, thanks to its promising growth and potential.

BHS Kinetic of Singapore sets up first North American office at SkySong development while Google and Canadian HVAC Company move to Mesa

Thanks to the recent establishment of BHS Kinetic’s first North American office at SkySong 1 in south Scottsdale, Phoenix is on track to witness remarkable growth in the semiconductor industry. The location will assist the company to more effectively provide services to its current U.S. semiconductor clients, as well as enlarge its warehousing and transportation offerings. Influenced by the region’s capability for cooperation with significant industry players like Intel and Taiwan Semiconductor Manufacturing Co. and the local semiconductor sector’s prospective, BHS Kinetic made a decision to choose Arizona.

The new establishment from BHS Kinetic intends to employ between 30-50 local employees, adding to the region’s burgeoning semiconductor ecosystem and opening up more opportunities for collaboration and job creation. Seeing Phoenix as a workforce hub for the semiconductor industry, Nippon Express U.S.A. and other international businesses have followed suit and established their own locations in the city.

At the moment, the entire development, with a potential for a sixth office building and the redevelopment of the nearby Papago Plaza, is estimated to produce an impressive $58.2 billion within the next 30 years.

Additionally, Xnrgy Climate Systems, which specializes in the cooling and heating of high energy-use data centers, is constructing its US headquarters close to the Phoenix-Gateway Airport. With the completion of the Phase One building, which has a 250,000 square feet production area and a 25,000-square-foot office, it has potential for an additional 750,000 square feet of manufacturing space, producing jobs for over 1,200 individuals. As this Mesa site advances, Xnrgy is looking into newer cooling and heating solutions for a wide variety of industries, making Phoenix a great place for potential expansion.

In addition, Google has added its own $1 billion data center campus to the mix, located in southeast Mesa and spanning over 185 acres near Sossaman and Elliot roads, which will be integral in powering Google’s key tools such as Search, Gmail, Maps, and AI innovation. The project’s initial phase includes a 288,530-square-foot building, a utility switchyard, a medium voltage substation, a site entrance with a security kiosk, and an employee office building, as well as taking advantage of a 25-year government property lease excise tax (GPLET) agreement with Mesa, which will allow them to pay reduced property taxes over the assigned period. This development from one of the world’s most massive tech companies is sure to bring about an extensive amount of focus and create numerous employment openings in the city. HDR Engineering Inc. is noted as the architect for the project, while Stone Applications LLC holds the land for Google’s campus, and it is anticipated to be finished by 2030.

Phoenix named as one of five US workforce hubs focused on manufacturing jobs

Following its designation as a workforce hub by the Biden administration Phoenix is poised for even more growth. The city’s commitment to public and private investments in the manufacturing industry, particularly in semiconductor, optical cable, critical mineral, and battery manufacturing, was a significant factor in its selection as one of five hubs. Phoenix will work with local stakeholders to develop a talent pipeline tailored to the needs of the region, expand apprenticeship programs and technical education, and support underrepresented students and workers.

The designation of Phoenix as a workforce hub is a major boost for the city’s economic development, providing an opportunity to create a highly skilled and diverse workforce to meet the demands of a growing manufacturing sector. Mayor Kate Gallego expressed her pride in Phoenix being selected as a hub and the city’s efforts to nurture, develop, and equip the future workforce. The Biden administration’s plan to replicate the hub model across the country shows the value placed on Phoenix’s success in this area.

With increased international investment, particularly in the semiconductor and automotive sectors, Phoenix is primed to become a global leader in manufacturing, and the workforce hub designation positions the city for significant growth in 2023 and beyond. Investments in training, childcare, and repurposing shuttered buildings demonstrate Phoenix’s commitment to fostering a highly skilled workforce, and the hub model offers a promising future for the region’s economic prosperity.

Undoubtedly, the addition of these three tech developments is an evident sign that Phoenix is aiming to be a prominent participant in the technology industry and carries on to promote economic development and job openings for the region. These opportunities will lead to a growth in the demand for housing, further encouraging the building of more housing complexes and heightening the development of the real estate industry. As Phoenix grows, it carries the possibility of a promising future with it. All in all, these advancements are positive signs that the city’s economy will continue to thrive and progress.

Greater Phoenix ranks among Top 10 in U.S. for sustainability

Phoenix’s 2023 ranking in Site Selection Magazine’s Annual Sustainability Rankings highlights the significant strides that the region has made towards a sustainable future. Being recognized as the No. 7 sustainable place in the nation and No. 2 in the Mountain Region indicates the concerted efforts by Phoenix businesses to incorporate eco-friendly policies. The factors used to determine the ranking, such as LEED-certified buildings and renewable energy capacity, highlight the success of the region in promoting clean energy use and conserving the environment. Arizona’s overall ranking at No. 5 also indicates a general awareness and acceptance of sustainable business practices.

Phoenix’s push for sustainability also has tangible benefits beyond environmental protection. As shown in a Deloitte study, millennial and Gen Z employees value a business’s impact on the environment when making career choices and buying decisions. Greater Phoenix companies have adapted and innovated to create a sustainable business culture, thus attracting and retaining young talent in a highly competitive job market.

Phoenix’s achievements in sustainability indicate a bright future for the region’s economic growth and overall well-being.

Solar module manufacturer expanding Valley production after signing two agreements

Phoenix’s future is bright with the announcement of Meyer Burger Technology AG’s first U.S. manufacturing facility for high-performance solar modules in Goodyear. With an expansion in production capacity from 1.5 to 2 gigawatts, it is set to become the company’s largest solar module manufacturing facility worldwide. This facility is not only expected to create over 400 jobs but also represents the growth of Phoenix as a key player in the clean energy industry. 

Partnering with BayWa r.e. and securing a long-term contract with Ingka Investments will provide solar modules produced in Goodyear for utility-scale applications across the United States between 2025 and 2029. This is a significant development in the renewable energy industry and puts Phoenix on the map as a sustainable energy powerhouse. 

Moreover, the Federal Inflation Reduction Act has incentivized the growth of clean energy industries in Phoenix, contributing to Meyer Burger’s progress in 2022. Alongside the JA Solar’s planned 2-gigawatt annual capacity solar module manufacturing facility, it is clear that Phoenix is taking big steps in securing its place as a clean energy hub for the future.

Data center campus reaches construction milestone in West Valley

In 2023, Phoenix is expected to experience significant growth in its data center industry, with the completion of Vantage Data Centers’ campus in Goodyear. The facility is anticipated to total about 1 million square feet across three buildings, with a total capacity of 176 megawatts. The campus is expected to create around 3,000 jobs during construction and technology operations. Vantage’s recent acquisition of 34 acres of land in Glendale, adjacent to QTS Realty Trust’s 400-acre site, highlights the increasing demand for data centers in the region.

Phoenix’s data center growth can also be attributed to Stream Data Centers’ 160-acre campus adjacent to a Microsoft facility and Compass. By the end of 2022, there were 267 megawatts under construction, and there are plans to construct an additional 746 megawatts across 5.7 million square feet in the coming years. Phoenix’s data center industry growth means a positive impact on its economy and an increase in job opportunities for its residents. The rise of data centers in the region could potentially lead to Phoenix becoming a key player in the technology industry.



Since 2019, Rise48 Equity has completed over $1.99 Billion+ in Total Transactions, and currently has $1.55 Billion+ of Assets Under Management located in Phoenix and Dallas.