KEY POINTS
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Prime Data Centers broke ground on the first three buildings of its PHX01 campus in Avondale, the opening phase of a five-building, 240MW development planned across 66.5 acres.
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The first three buildings are listed at 267,000 square feet and 48MW each.
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Prime says the campus is designed for AI and high-performance computing workloads, with closed-loop cooling, an on-site substation, multiple carriers, and a commitment to renewable energy.
Prime Data Centers broke ground on the first three buildings at its planned five-building PHX01 campus in Avondale, Arizona. The start marks the opening phase of a $3 billion planned investment, the company said in a May 21, 2026, statement.
The Dallas-based data center developer and operator said the campus is aimed at the rising demand for AI-ready digital infrastructure in the Southwest.
Avondale is in one of the country’s fastest-growing data center corridors, and Prime is positioning the project to capture that momentum as hyperscale users expand cloud and AI capacity in Greater Phoenix.
Over One Million Square Feet Planned
According to Prime, the full development is planned for 240MW of critical IT load across five hyperscale data centers totaling 1.3 million square feet. The site is also designed with 20 data halls, an on-site substation, concurrently maintainable mechanical and electrical systems, multiple nearby carriers and layered security.
The company said each of the first three buildings will deliver 48MW of critical IT load, for a combined 144MW in the opening phase. Prime also said Buildings 1 through 3 have already been secured by a leading hyperscaler, while the remaining two buildings on the 66-acre site will be available for additional demand.
Michael Wall, Prime’s executive vice president of product delivery, called the groundbreaking a defining moment for the company’s partnership with Avondale and for the Greater Phoenix market. Wall said the first phase is the start of a long-term investment and that the infrastructure is being built to scale with customer demand over time.
AI Demand Shapes the Buildout
Prime is framing PHX01 around next-generation AI and high-performance computing needs. On its campus page, the company describes Phoenix as an AI-ready site and says the project will use closed-loop air and liquid cooling to support high-density deployments.
Prime said the closed-loop cooling system will be engineered for zero process water use during operations. The company also said it procures Water Restoration Certificates equal to 120% of annual operating water consumption across its portfolio and intends to maintain that level each year. In its 2025 Sustainability Report, Prime said the certificates support third-party verified watershed restoration projects across North America.
[Read the ConstructConnect Data Center Report]
A recent survey by Gallup found opposition to local data center construction ran higher than opposition to local nuclear plants, 71% to 53%. It also found 46% of respondents said they worry a great deal about the environmental impact of AI data centers, while another 24% worry a fair amount.
Among opponents, half cited excessive resource use, including 18% who specifically mentioned water and 18% who mentioned energy.
The Prime design choices matter in Arizona, where water use and power delivery have become central questions in large-scale digital infrastructure projects. By emphasizing closed-loop cooling, renewable energy and dedicated substation capacity, Prime is signaling that sustainability and utility readiness are now core parts of the sales pitch for hyperscale development, not side issues.
A rendering from Prime Data Centers of its PHX01 campus in Avondale, Arizona. The data center developer and operator broke ground on the first three buildings at its planned five-building campus. Image: Prime Data Centers
Construction Team and Delivery Milestone
Prime said Phase 1 of the campus’s 250MW substation has already been commissioned, a milestone tied to delivering the first 144MW of critical IT capacity.
The company also identified ARCO/Murray as part of the project team. ARCO/Murray describes itself as a design-build contractor with more than 30 years of experience and more than 6,000 completed projects. In the announcement, Brent Jordan, a vice president at the company, said detailed planning, collaboration, and safe execution would be essential on a development of this scale.
What It Means for Construction
The Avondale project aligns with recent trends that shows data center construction starts at the forefront of nonresidential construction spending. The project combines large building footprints, heavy power infrastructure, and specialized cooling systems, all of which can create opportunities across electrical, mechanical, concrete, steel, and other mission-critical trades.
It also reinforces Phoenix’s role as a market for hyperscale development. Avondale Mayor Mike Pineda said the project brings the prospect of jobs, long-term economic growth, and new infrastructure while using technology intended to reduce water consumption.
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