QTS Phoenix 2 DC2: 42MW High-Density AI & Hyperscale Hub in Arizona
Status: Fully Operational Hub | Location: 1250 N 40th St, Phoenix, AZ 85008, USA
Project Overview
QTS Phoenix 2 DC2 is the second major 42 MW hyperscale data center within QTS’s 85-acre Phoenix 2 campus located on North 40th Street in East Phoenix, Arizona. Designed to support the growing demands of hyperscale cloud providers, enterprise digital platforms, and artificial intelligence (AI) and high-performance computing (HPC) environments, the facility delivers scalable, high-performance infrastructure for mission-critical workloads. DC2 is engineered to accommodate high-density deployments with rack power capacities ranging from 40 kW to more than 100 kW per rack, making it well suited for GPU-intensive AI training clusters and next-generation cloud applications. The facility incorporates QTS’s advanced zero-water evaporation cooling technology, eliminating industrial water consumption while maintaining highly efficient thermal performance in Arizona’s arid Sonoran Desert climate. Powered entirely by 100% renewable electricity through Salt River Project (SRP) partnerships, DC2 supports sustainability goals while providing reliable energy for large-scale digital operations. The campus features block-redundant electrical distribution, resilient backup power systems, and path-diverse dark fiber connectivity to major North American carrier networks, internet exchanges, and cloud on-ramp services, ensuring low-latency and high-bandwidth communications. Combined with advanced physical security, automated infrastructure management, and scalable expansion capabilities, QTS Phoenix 2 DC2 provides a future-ready platform for hyperscale cloud, enterprise, and AI-driven digital infrastructure deployments.
Quick Facts
| Field | Value |
|---|
| Project Name | QTS Phoenix 2 DC2: 42MW High-Density AI & Hyperscale Hub in Arizona |
| Location | 1250 N 40th St, Phoenix, AZ 85008, USA |
| Status | Fully Operational Hub |
| Commissioning | Phase 1 Go-Live: Operational / Phased Expansion (2023–2026+) |
| Total IT Load | 42 MW Critical IT Power Capacity Allocation (DC2 Building Load) |
| Total Capacity | 42 MW Total IT Load across a ~350,000 sq ft (~32,500 m²) gross facility footprint (Campus total: 210+ MW across 1.8M sq ft / 85 acres) |
| Tier Level | Tier III Certified Architecture / ISO 27001, ISO 14001, SOC 1 & 2 Type II, PCI-DSS, HIPAA Compliant |
| Project Type | Purpose-Built Hyperscale, High-Density AI Colocation & Enterprise Cloud Hub |
City Profile
| Header | Details |
|---|
| City Name | Phoenix |
| Population | approx 28,184$ |
| Urban Agglomeration | $approx 198,651$ |
| City GDP | $approx $10.91$ Billion USD |
| Per Capita Income | $48,362 USD. |
| City Tier | Secondary U.S. Data Center Market |
| Key Strengths | Vibrant Economy: |
Companies Involved
| Header | Details |
|---|
| Developer / Operator | QTS Data Centers |
| Strategic Infrastructure Partner | SRP (Salt River Project) Utility Network & City of Phoenix Municipal Authorities |
| Construction Contractor | Specialized US Mission-Critical EPC Contractors |
| MEP Engineering | QTS In-House Global Critical Infrastructure Engineering Teams |
| Network Connectivity | Carrier-neutral platform with dual subterranean path-diverse fiber entrance vaults; redundant Meet-Me-Rooms (MMRs); direct dark fiber backhaul linking to Phoenix IX, major regional carrier facilities, and national fiber backbones. |
| Power Infrastructure | Dual dedicated 230kV high-voltage utility substations on-site, static distributed 2N / Block Redundant N+1 uninterruptible power supply (UPS) modules, automated switchgear, and multi-megawatt standby diesel generators with multi-day on-site fuel autonomy. |
Technical Specifications
| Header | Details |
|---|
| Power Capacity | 42 MW Secured Utility Power Allocation (DC2 Building Allocation) |
| UPS Redundancy | Block Redundant / 2N Static UPS Architecture |
| Cooling System | Closed-loop non-evaporative chilled-water systems, zero-water waste dissipation (WUE = 0.0), Direct-to-Chip Liquid Cooling (DLC) and Rear Door Heat Exchanger (RDHx) readiness for high-density AI clusters, and automated BMS environmental controls. |
| Connectivity | Carrier-neutral host offering direct low-latency cloud express on-ramps (AWS, Azure, GCP via QTS SDP) and cross-connect options across North American fiber corridors. |
| PUE Target | < 1.18 Annualized Operational Design PUE |
| Energy Mix | 100% Certified Carbon-Free Renewable Energy integration via long-term solar/wind Power Purchase Agreements (PPAs) with Salt River Project. |
Milestones
| Header | Details |
|---|
| Announcement | 2021 |
| Construction Start | 2022 |
| Phase 1 Go-Live | Operational (2023) |
| Full Buildout | Operational Active Building |
Investment Details
| Header | Details |
|---|
| Total Investment | Estimated $300,000,000 USD to $450,000,000 USD Building 2 Capital Expenditure |
| Funding | Corporate Capital Expenditure & Private Equity Infrastructure Financing (Blackstone / QTS) |