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Greater Phoenix, USA The Ideal Climate for Mission Critical

The Greater Phoenix Market is rapidly establishing itself as a regional hub for major colocation providers.” – CBRE’s Luke Denmon (CBRE Phoenix Market Focus)


Greater Phoenix Boasts Some of the Best in the Biz

These companies and more have already realized the benefits of doing business in Greater Phoenix.

The Ideal Climate for Mission Critical

Greater Phoenix offers quick access to millions of customers in a market that provides easy accessibility and a broad range of talented workforce. The low-catastrophic risk and virtually untouched climate provides stability in a region built to house mission-critical information. The low cost of living and unparalleled quality of life creates the ideal environment for success.

Did you know? • Business operating costs in Arizona are approximately 40% lower than in neighboring California • Low Catastrophic Risk - three AZ cities rank among the top 10 US cities for lowest natural disaster risk • Two primary electric utilities – APS and Salt River Project – rank as top business service providers by J.D. Power & Associates, providing an estimated average cost of power at $0.069/kWh • Phoenix boasts a dependable infrastructure that includes one of the top five regional fiber optic deployments in the US and more than 156,000 miles of fiber optic network capacity • In 2010, the region’s total labor force reached 2 million people and is projected to increase 85 percent over the next two decades – that’s four times faster than the national growth estimate of just 20 percent!

fact

“Arizona is a great location for data centers, and the market is beginning to realize this.”

– CB Richard Ellis Senior Vice President Mark Bauer (AzRE Magazine)

Notable Co-Located Data Centers:

American Express Bank of America Charles Schwab ebay Fatpipe Financial Engines

Cyrus One Digital Realty Trust Equinix

First Data Corp Fry’s Global Crossings Go Daddy IBM Lydian Data Services Wells Fargo

E

Greater Phoenix, USA

Notable Data Centers:

A XP

ND WITH U S

Phoenix NAP Sunguard i/o


Greater Phoenix: Geographic Position

Fertile Ground for Growth

Access to major markets, customer base • Greater Phoenix economy represents 75 percent of state economy • Sky Harbor Airport handles 38 million passengers annually and the region also boasts Phoenix-Mesa Gateway airport and eight additional general aviation airports • Sky Harbor offers daily direct flights to hundreds of domestic cities and international cities throughout Canada, Mexico and the United Kingdom • Home to US Airways’ headquarters and a Southwest Airlines hub • Quick drive times to Los Angeles, San Diego and areas of Mexico

GEOGRAPHIC POSITION

Operating Environment Advantageous business climate • A second bill is being proposed in upcoming legislations to rebate sales taxes on IT equipment • Minimal regulation • A Right to Work state • No sales tax on manufacturing equipment • No inventory tax • 90-day-or-less permitting • Low total payroll costs, including some of the lowest Fringe and Mandated Benefits in the country

Human Capital

Mature talent and workforce pipeline • Maricopa County population is more than 4 million and expected to grow to approximately 7 million in the next 20 years • Arizona State University – graduates 2,600 business students per year with 75K on four campuses • Maricopa Community Colleges provides job-skill training to 270K annually • University of Phoenix specializes in business curriculum and is the largest private university in the country • A relatively young region, with a median age of 34.7 – three years younger than the average age for US metropolitans

Mission Critical

OPERATING ENVIRONMENT

An environment to support and grow industry • Low catastrophic risk – three AZ cities rank in the top 10 for lowest risk • One of top 5 regional fiber optic deployments in US • More than 156,000 miles of fiber optic network capacity • Top-ranked utilities APS and SRP, with electricity costs in Arizona 30.4% less than in California • Faster internet speeds than any bordering state

Incentives

INFRASTRUCTURE

GREATER PHOENIX’S UNIQUE VALUE PROPOSITION

Infrastructure

INCENTIVES

Incentives Rewards qualified companies • Arizona Competitiveness Package - $9K of credit over three years for new qualified jobs - Reduces commercial and industrial real and personal property taxes by 10%. Assessment rate being lowered from 22 to 19% - Starting in 2014, corporate income tax rate steadily decreases to 4.9% -Starting in 2014, Sales Factor ramps up to 100% • Job Training Program - Up to $8K in grants per employee for a maximum $1.5M - Awarded grants up to 75% of expenses incurred while providing technology skills training • Additional Depreciation - Companies not receiving property tax incentives under the RETIP, FTZ, or MRZ programs can elect to take additional depreciation on their personal property - Additional depreciation encourages new capital investment by quickly reducing personal property tax liability

Lifestyle

HUMAN CAPITAL

LIFESTYLE

Growing arts & culture community, plentiful outdoors sports & adventure • Median household income is $54,713 • Arizona averages 334 sunny days per year • Home to five professional sports teams and more than 325 golf courses • Flourishing arts and culture scene • Thousands of restaurants, boutiques and attraction • World-class zoo and renowned museums • Drive to beaches or the mountain pines and arrive by noon


Greater Phoenix: Positioned for Efficiency

Greater Phoenix: Optimal Business Environment

Nestled between an array of mountain ranges, the appropriately nicknamed Valley of the Sun provides a stable and low catastrophic-risk environment, ideal for a mission-critical facility.

The low chance for natural disasters positions Greater Phoenix as a top choice for data centers, but many neglect to recognize the large potential for reduced amounts of energy usage as a result of the stable climate.

This ideal climate is neighbor to the world’s 8th largest economy and with Phoenix Sky Harbor International Airport located in the heart of the city, Greater Phoenix is positioned for success nationally and globally. Home to the US Airways Headquarters and a Southwest Airlines Hub, Greater Phoenix is privileged to provide effortless travel accommodations and direct flights to most domestic and international cities daily.

Greater Phoenix offers mild to cool weather for the majority of the year, creating the availability for economizer, or “free cooling” strategies, thus eliminating the need for expensive mechanical refrigeration. In some instances, the outside air is already the desired temperature and mechanical refrigeration, such as chillers, can be turned off.

In addition, the accessibility to surrounding cities also positions Phoenix for maximum business efficiency. Cities like Los Angeles, San Diego and the US-Mexico border are within a half-day’s drive.

2010 AVERAGE POWER RATE 14

Inexpensive alternatives such as cooling towers and heat exchangers, which chill water to the appropriate temperature, are also possible in Greater Phoenix. This can significantly reduce the amount of energy used in a data center.

12 10 8

OGDEN

Bay Area 750 miles • 12.00 hrs

Two-day Delivery area

Salt Lake City 635 miles • 11.00 hrs

Denver 930 miles • 12.50 hrs

RENO

NV

Las Vegas 285 miles • 5.25 hrs Riverside/InlandEmpire 310 miles • 4.10 hrs

San Diego 350 miles • 4.75 hrs

UT

LAS VEGAS

LOS ANGLES

Alburquerque 475 miles • 6.25 hrs

Phoenix

Tucson 125 miles • 1.75 hrs

El Paso 440 miles • 6 hrs

SAN DIEGO

YUMA

FLAGSTAFF

CO

4

PUEBLO

AZ

ALBUQUERQUE

PHOENIX

AMARILLO

OK

NM

LUBBOCK FORT WORTH

TX

Houston 1,185 miles • 17.50 hrs

SAN ANTONIO

Phoenix Silicon Valley New York

Chicago

Dallas

Los Angeles

DALLAS

EL PASO

NOGALES

0

OKLAHOMA CITY

SANTA ANA

One-day delivery area

2

SANTE FE

TUCSON

Dallas 1,120 miles • 5.5 hrs

6

DENVER SALT LAKE CITY

CA

HOUSTON

CHIHUAHUA

MEXICO

LAREDO

LOS MOCHE TORREON MAZATLAN CIUDAD VICTORIA

2 HOUR 3 HOU R 4 HOUR

1 HOUR

Phoenix is a significant data center market with strong demand from many companies that want to locate their IT infrastructure in a location relatively free of natural disasters, with significant fiber connectivity and competitively priced electricity. Our local power utility, Salt River Project, provides green options and has a long history of maintaining robust, stable, and low cost power.” – Digital Realty Trust Senior Vice President Brent Behrman


GPEC: Your Connection to the Future The Greater Phoenix Economic Council (GPEC) is Arizona’s premier economic development organization Representing Maricopa County, 20 communities and more than 140 private investors, GPEC connects companies with Arizona’s key leaders and influencers, and provides site-selection services at no cost to you. We aim to provide an easy and transparent way to evaluate our market with a focus on speed and efficiency.

www.az4missioncritical.com Greater Phoenix Economic Council 602.256.7700 | 1.800.421.4732 | info@gpec.org

@gpec

/gpecgreaterphoenix

Greater Phoenix Economic Council (groups)

Member Communities MARICOPA COUNTY

GILA BEND

PEORIA

APACHE JUNCTION

GILBERT

QUEEN CREEK

AVONDALE

GLENDALE

SCOTTSDALE

BUCKEYE

GOODYEAR

SURPRISE

CASA GRANDE

MARICOPA

TEMPE

CHANDLER

MESA

TOLLESON

FOUNTAIN HILLS

PHOENIX

WICKENBURG

www.gpec.org


Mission Critical  

GPEC economic development

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