Writer: Andrea Teran
2 min read February 2024 — Recognized for its picturesque landscapes and thriving urban development, the Greater Phoenix area is emerging as a formidable tech hub, with proposed economic clusters set to reimagine the region’s role in technology innovation.
Located in the heart of southeast Phoenix, East Thistle Data Center, a project spearheaded by Menlo Equities, aims to repurpose an existing office park into a state-of-the-art, one million-square-foot technology and data center campus. Envisioned across approximately 40 acres at the intersection of Thistle Landing Drive and 50th Street, the project plans to house five buildings, each offering around 206,500 square feet of new facilities. The East Thistle Data Center is a hybrid campus that integrates office spaces for research and development alongside its data center operations. This blend of uses is a strategic move to attract advanced internet-based businesses and those requiring close proximity to high-capacity server facilities.
This development is set to replace the predominantly vacant office and call center buildings developed in 1998, a significant shift in the area’s economic landscape. Menlo Equities’ investment in Phoenix, including the acquisition of the Thistle campus in 2015 for $52.75 million, underscores the firm’s confidence in Phoenix as a tech hub. The project has received approval from the Ahwatukee Foothills Village Planning Committee, with further city council deliberations pending.
West of Phoenix, in the city of Buckeye, another development is taking shape — the Buckeye Tech Corridor. Spanning nearly 2,000 acres, this proposed data center and technology campus is poised to redefine the industrial landscape around Buckeye Municipal Airport. The project, led by Arizona Land Consulting LLC, aims to establish a master-planned corridor dedicated to high-tech industries, clean manufacturing, data centers, and commercial development.
Replacing the never-realized Cipriani master plan, the Buckeye Tech Corridor has garnered support from the city’s planning commission, reflecting enthusiasm for its potential to drive economic growth and innovation, and will include extensive infrastructure work and phased development to accommodate future growth. A major, undisclosed employer’s interest in a significant portion of the corridor further highlights the project’s strategic importance to Arizona’s tech landscape. With Buckeye positioned to leverage its proximity to major transportation routes and the municipal airport, the corridor is expected to attract investment and talent, contributing to the region’s economic dynamism.
According to the 2024 Dice Tech Salary Report, Phoenix tech job salaries ranked 13th highest in the nation, increasing by 1.7% between 2022 and 2023. The growth, albeit modest compared to the explosive 26% salary surge between 2021 and 2022, reaching an average salary of $120,731 in the Phoenix metro area, indicates a stable tech market for Arizona’s most populated city. Despite the slower pace, Phoenix’s tech sector continues to outperform many other regions, defying national trends of salary drops in established tech hubs like Silicon Valley, Seattle, and Boston.
Factors such as the cost of living, quality of life, and the availability of skilled graduates from institutions like Arizona State University contribute to this trend. ASU’s high ranking for employable graduates, coupled with the local tech sector’s robust performance, underscores the synergistic relationship between educational institutions and the industry, fostering a conducive environment for innovation and economic growth.
“Arizona State University continues to deepen its relationships with companies regionally, nationally and globally,” Dean Kyle Squires at Ira A. Fulton School of Engineering at ASU told Invest:.
“As a result, our faculty members have extensive knowledge of what employers need from new hires, and ASU’s curriculum is adapted to meet those talent resource needs. Our close relationships with industry offer ASU graduates a competitive edge in searching for a job and give businesses access to competitive, highly skilled talent,” Squires said.
READ MORE: Phoenix seeing greater collaboration on semiconductor industry talent pipeline
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