Lincoln Property Company Acquires Chandler Data Center to Address Critical Phoenix Market Shortage
Lincoln Property Company's acquisition and planned expansion of a Chandler data center addresses Phoenix's record-low vacancy rates while implementing water-saving cooling technology that could conserve millions of gallons monthly.
Lincoln Property Company has acquired a 191,000-square-foot data center in Chandler, Arizona, with plans to expand capacity and implement water-saving cooling technology at a time when the Phoenix market faces unprecedented demand and critically low vacancy rates. The facility at 2500 W. Frye Rd. sits within the Price Road technology corridor and offers 28MW of confirmed utility power served by an existing Salt River Project substation.
The company will fit out three vacant data center halls, adding 16MW of critical capacity to the partially occupied facility. One of the four halls is already fully leased to a Fortune 500 enterprise user. An initial 4.2MW is targeted for delivery in early Q1 2026, providing much-needed inventory for hyperscale, enterprise and neocloud users in a market where vacancy has dropped below 2% according to CBRE research available at https://www.cbre.com/insights/figures/us-data-center-figures-h1-2024.
A significant environmental improvement involves transitioning the facility from evaporative cooling to air cooling systems, creating potential water savings of up to 3 million gallons monthly for the City of Chandler. This conservation effort comes as data center water usage has become an increasing concern in arid regions like Arizona.
"Arizona's unprecedented, immediate demand from hyperscale, enterprise and neocloud users has pushed local data center vacancy to record lows," said Lincoln Property Company Executive Vice President Ryan Sullivan. "This facility will add critical turnkey capacity with immediately available utility power."
The acquisition marks Lincoln's return to a property it previously owned and managed between 2018 and 2019. The company sold the asset in 2019 to the current seller and now repurchases it at a time of extreme market constraints. Metro Phoenix ranks as the nation's fourth largest data center market, with steady demand and absorption creating severe inventory shortages.
The Frye Road facility expands Lincoln's substantial metro Phoenix presence to 23.2 million square feet of owned and managed space across Class A office and industrial projects. The site includes 14.5 acres with additional development potential approved by the City of Chandler through a development agreement initiated by the previous owner. CBRE brokers Kristina Metzger, Ben Wobschall and Mark Krison represented the seller in the transaction, while Lincoln will serve as property manager and handle leasing through its dedicated data center team.
For more information about Lincoln Property Company's national operations and portfolio, visit https://www.lpc.com. The company's strategic focus on value-add data center properties comes as the Phoenix market continues to experience robust growth driven by technology sector expansion and favorable business conditions in the region.