Greater Phoenix is climbing fast as one of the nation’s top technology hubs. The region has seen record-breaking job growth in software, semiconductors and AI-driven enterprises. But behind every startup and every Fortune 500 expansion is a basic need that rarely makes headlines: data capacity. Without the infrastructure to store, process and move information, growth stalls.
That is why Arizona’s next wave of competitive advantage lies in data centers. Vermaland’s $33-billion data center industrial park, spanning 3,300 acres between Phoenix and Tucson, is designed to meet that demand. When complete, it will be one of the largest proposed data center developments in the United States.
Why Data Centers Matter for Tech Growth
Every technology company, whether a startup or an established global player, depends on reliable and affordable data center access. The rise of artificial intelligence, machine learning, and high-performance computing has only intensified those needs. The private-sector Stargate initiative, a $500 billion plan announced in January 2025 and endorsed by national leaders, underscores how vital data infrastructure has become.
For Phoenix, that urgency means opportunity. CBRE reports our metro posted a 67% increase in data center inventory in 2024, one of the fastest growth rates in the country. Yet demand still exceeds supply. Local firms often compete with global giants for limited capacity. Building large-scale facilities in Arizona ensures that homegrown innovators will not be forced to look elsewhere.
Strategic Advantages for Arizona
Arizona is uniquely positioned to lead. Energy costs here remain well below California, a critical factor for power-intensive operations. Vermaland’s project also uses a hybrid system of solar, natural gas, battery storage and grid connectivity, reinforcing the state’s move toward cleaner, more reliable energy. With 16 solar farms already in development across 10,000 acres, Vermaland is tying digital growth directly to renewables.
The site sits in a federally designated Qualified Opportunity Zone, which offers long-term tax incentives for eligible investments. This combination of lower costs, renewable integration and federal benefits makes the Phoenix-Tucson corridor competitive with Northern Virginia’s “Data Center Alley,” which has long dominated the industry.
Economic Ripple Effects
Data centers are more than servers and switches. They create construction jobs, permanent operations roles and ripple effects across industries. In 2020, Arizona’s data center sector produced $539 million in economic output, supported 2,500 jobs and contributed at least $85 million in state and local tax revenue.
The scale of Vermaland’s project suggests those numbers will rise sharply. For local tech companies, the benefits are tangible: greater access to capacity, predictable costs and the ability to scale in step with global peers. Large-scale infrastructure also signals to out-of-state firms that Arizona has the backbone to support long-term innovation.
Building the Future Backbone of Tech
Phoenix has already proven it can attract leading-edge companies in semiconductors, autonomous vehicles and AI. Sustaining that momentum requires equal investment in the infrastructure these industries rely on. The Vermaland project is about building exactly that foundation.
Looking ahead, the question is no longer whether Arizona will be a tech hub. The real question is whether we will have the capacity to support the companies choosing to grow here. By developing one of the largest data center industrial parks in the country, we are positioning our state to answer with confidence: Yes.
Kuldip Verma is founder and CEO of Vermaland, a Phoenix-based land development company specializing in solar farms, industrial development and data center infrastructure.
Photo courtesy of Vermaland
