GI Partners Purchased Phoenix Data Center Site
The investment firm secured a 5.43-acre property in downtown Phoenix for nearly $15 million.
Updated on Sept. 23, 2026 in Data Centers
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Should local development projects proceed even if they face new zoning rule challenges?
GI Partners completed the purchase of a 5.43-acre site located at 7th Avenue and Grant Street in Phoenix for $14,720,919. The acquisition represents a continued development push in the local market despite shifts in zoning regulations.
Why it matters
The site transaction signals sustained interest in the Phoenix data center market, even as local infrastructure and land-use policies undergo new oversight. Institutional investment continues to flow into the area to support increasing regional computational capacity.
GI Partners finalized the acquisition of the 5.43-acre plot for $14,720,919. This transaction follows the property's previous sale in 2012 for $3.15 million, reflecting significant appreciation in industrial land valuation.
The players
GI Partners
An investment firm that manages private equity and real estate portfolios with a significant focus on data center infrastructure.
LKY Development
A commercial real estate development firm previously responsible for the ownership and management of the site at 7th Avenue and Grant Street.
The details
The transaction involved a land sale at the intersection of 7th Avenue and Grant Street, a key area for urban infrastructure development in Phoenix. The project proceeded after local authorities addressed potential zoning rule threats that could have impacted site utility for heavy electrical and cooling load facility requirements.
Timeline
2012: LKY Development originally purchased the 5.43-acre property.
September 17, 2026: GI Partners finalized the acquisition of the site for $14,720,919.
The Tech Race
This development follows recent adjustments to Phoenix zoning code amendments for heavy industrial infrastructure. The firm is moving ahead with its site utilization plans despite the tightening regulatory framework governing local data center density.
Local residents should expect future site preparation and construction activity at the 7th Avenue and Grant Street location. The development serves as a precursor to new regional enterprise capacity, though specific completion timelines and customer availability remain unannounced.
The takeaway
This acquisition confirms the continued strategic importance of Phoenix as an industrial hub for massive-scale digital infrastructure. Watch for future site plan filings with local planning boards to determine the proposed facility's technical specifications and intended service scale.
Further reading
For more on the regional expansion of cloud and colocation facilities, see our Data Centers coverage.
Live Poll
Should local development projects proceed even if they face new zoning rule challenges?
