Data center being planned near downtown Phoenix
A new data center project is being planned south of downtown Phoenix, near 7th Avenue and Grant Street. Investment firm GI Partners purchased the site from LKY Development, following new city zoning rules that had initially restricted such projects. City officials approved a waiver to allow the data center on the property.
An investment firm identified as GI Partners is planning a new data center south of downtown Phoenix, near the intersection of 7th Avenue and Grant Street. The firm acquired the site on September 17th from LKY Development for nearly $15 million, according to reports from the Phoenix Business Journal.
This project comes after the City of Phoenix leaders implemented new zoning rules last year, which restricted where data centers could be constructed. LKY Development had reportedly requested $10 million from the city as reimbursement for the property's decrease in value following these zoning changes. However, instead of monetary compensation, city officials approved a waiver, permitting a data center to be built on the property.