QTS Phoenix 2 DC3: 42MW High-Density AI & Hyperscale Hub in Arizona
Status: Active Development / Phased Expansion | Location: 1400 N 40th St, Phoenix, AZ 85008, USA
Project Overview
QTS Phoenix 2 DC3 is a flagship 42 MW hyperscale data center located within QTS’s 85-acre Phoenix 2 campus on North 40th Street in East Phoenix, Arizona. Developed to meet the rapidly growing demand for cloud computing, artificial intelligence (AI), and high-performance computing (HPC), the facility is designed to support hyperscale cloud providers, enterprise platforms, and GPU-intensive AI training environments. DC3 accommodates high-density deployments with rack power capacities ranging from 40 kW to more than 100 kW per rack, enabling next-generation AI infrastructure and advanced compute workloads. The facility incorporates QTS’s proprietary water-free closed-loop cooling technology, eliminating operational water consumption while delivering highly efficient thermal performance in Arizona’s desert climate. Powered entirely by 100% renewable electricity through partnerships with Salt River Project (SRP), DC3 supports customers’ sustainability and carbon reduction objectives. The data center is directly connected to the campus’s dual 230 kV utility substations, providing resilient, high-capacity power infrastructure for mission-critical operations. Path-diverse dark fiber connectivity links the campus to major carrier networks, internet exchanges, and western U.S. cloud ecosystems, ensuring low-latency, high-bandwidth communications. Combined with advanced physical security, automated infrastructure monitoring, and scalable expansion capabilities, QTS Phoenix 2 DC3 serves as a future-ready digital infrastructure platform for hyperscale, enterprise, and AI-driven computing workloads.
Quick Facts
| Field | Value |
|---|
| Project Name | QTS Phoenix 2 DC3: 42MW High-Density AI & Hyperscale Hub in Arizona |
| Location | 1400 N 40th St, Phoenix, AZ 85008, USA |
| Status | Active Development / Phased Expansion |
| Commissioning | Phase 1 Go-Live: 2024–2025 / Active Phased Buildout |
| Total IT Load | 42 MW Critical IT Power Capacity Allocation (DC3 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 (DC3 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 | 2022 |
| Construction Start | 2023 |
| Phase 1 Go-Live | Operational Expansion (2024–2025) |
| Full Buildout | Active Multi-Phase Development |
Investment Details
| Header | Details |
|---|
| Total Investment | Estimated $300,000,000 USD to $450,000,000 USD Building 3 Capital Expenditure |
| Funding | Corporate Capital Expenditure & Private Equity Infrastructure Financing (Blackstone / QTS) |