A massive hyperscale data center campus has broken ground in Avondale, Arizona, marking the start of a more than $3 billion infrastructure investment aimed at meeting surging demand for artificial intelligence and high-performance computing.

The campus, designated PHX01, will ultimately comprise five buildings totaling 1.3 million square feet across 66.5 acres, with a combined critical power capacity of 240 megawatts. The three buildings now under construction are each 267,000 square feet and will deliver 48 megawatts of IT load capacity apiece, accounting for 144 megawatts of the campus’s total planned output.

A leading hyperscaler has already secured Buildings 1 through 3, with Buildings 4 and 5 remaining available to meet additional demand. A dedicated on-site substation powers the campus, with Phase 1 of the 250-megawatt substation now commissioned and operational.

Prime Data Centers, an international developer and operator of hyperscale facilities, is driving the project with a total investment exceeding $3 billion. Tenant customers will invest roughly double that amount on top.

Economic Milestone For The City

Avondale Mayor Mike Pineda called it a significant economic milestone for the city. “This is the kind of responsible investment that positions Avondale for long-term success,” he said, pointing to new jobs and infrastructure the project would bring to the community.

The campus is being designed with sustainability as a central feature. A closed-loop cooling system will eliminate the need for ongoing process water during operations. A notable commitment in Arizona, where water scarcity is a pressing concern. Prime also purchases Water Restoration Certificates equal to 120 percent of its annual operating water consumption across its portfolio. The company has additionally pledged to power the campus entirely on renewable energy and is targeting SOC2 Type II and ISO 27001 security certifications.

Michael Wall, Prime’s Executive Vice President of Product Delivery, said the groundbreaking represents a long-term commitment to the region, not just a construction milestone. “The infrastructure we are putting in place today is built to scale alongside the demands of our customers for years to come,” he said.

Construction firm ARCOMurray is leading the build. Vice President Brent Jordan said the scale of the project demands careful coordination. “Success on a development of this scale comes down to detailed planning, strong collaboration, and a commitment to safe, efficient execution,” he said.

Phoenix Data Center Market

Phoenix has emerged as one of the fastest-growing data center markets in the United States. Driven by surging demand for artificial intelligence infrastructure, cloud computing, and high-performance computing workloads. Prime’s PHX01 campus is designed specifically to serve those use cases, featuring high-density compute infrastructure. 20 data halls with privacy galleries, concurrently maintainable mechanical and electrical systems, and layered physical security with multiple carrier connectivity.

The Avondale campus adds to a wave of hyperscale investment sweeping the United States, joining projects such as the AWS Hobart Hyperscale Campus in Indiana, as demand for AI infrastructure drives developers to accelerate large-scale builds across the country.

Factsheet: PHX01 Data Center Campus — Avondale, Arizona

• Developer: Prime Data Centers
• Location: Avondale, Arizona
• Campus Designation: PHX01
• Total Investment: $3 billion+ (Prime); tenant customers expected to invest ~2x on top
• Total Campus Size: 66.5 acres | 1.3 million square feet
• Total Buildings: 5 hyperscale data centers
• Phase 1 Buildings: 3 (under construction)
• Building Size: 267,000 square feet each
• Total Critical Power Capacity: 240MW
• Phase 1 Critical Power: 144MW (48MW per building)
• Data Halls: 20
• Substation: Dedicated on-site 250MW substation (Phase 1 commissioned)
• Anchor Tenant: Unnamed leading hyperscaler (Buildings 1–3 secured)
• Available: Buildings 4 and 5
• Cooling: Closed-loop system; zero process water use during operations
• Water Stewardship: Water Restoration Certificates at 120% of annual consumption
• Energy: 100% renewable energy commitment
• Certifications: SOC2 Type II and ISO 27001 (targeted)
• Construction Partner: ARCOMurray