Prime Data Centers has officially broken ground on the first three data centers of its new five-building hyperscale campus in Avondale, Arizona, launching what the company describes as the opening phase of a 240MW development representing more than USD 3 billion in total investment.

A Large-Scale Campus Takes Shape in Avondale

The campus, designated PHX01, will ultimately span 66.5 acres and 1.3 million square feet across five hyperscale data centers delivering 240MW of total critical IT power.

The three buildings now under construction, the first phase of that buildout, are each 267,000 square feet in size and capable of delivering 48MW of critical IT load capacity per facility.

Combined, the first three buildings will provide 144MW of critical IT capacity. Prime Data Centers describes Avondale as sitting at the heart of one of the fastest-growing data center markets in the United States, where demand for AI-ready infrastructure, cloud computing, and high-performance workloads continues to accelerate.

The first-phase buildings have already been secured by a leading hyperscaler, according to the company, with buildings four and five remaining available to meet additional demand.

Michael Wall, Executive Vice President of Product Delivery at Prime Data Centers, called the groundbreaking a defining moment for the company's partnership with Avondale and the Greater Phoenix region.

"This first phase represents the beginning of a long-term investment in Avondale, and the infrastructure we are putting in place today is built to scale alongside the demands of our customers for years to come," Wall said.

Infrastructure and Power Delivery

Powering the campus is a dedicated on-site substation. Prime Data Centers confirmed that Phase 1 of the campus's 250MW substation has already been commissioned, which the company characterized as a major milestone in the delivery of the first 144MW of critical IT capacity.

The substation infrastructure is designed to support the full five-building buildout as subsequent phases come online.

The completed campus will feature 20 data halls with infrastructure galleries designed to ensure data hall privacy.

The facility will also include concurrently maintainable mechanical and electrical systems, multiple carrier access, and comprehensive layered security.

The campus is targeting SOC2 Type II and ISO 27001 compliance certifications.

General contracting duties are being handled by ARCOMurray.

Brent Jordan, Vice President at ARCOMurray, said that success on a development of this scale depends on detailed planning, strong collaboration, and a commitment to safe, efficient execution. "We are proud to be part of bringing Prime's vision to life," Jordan said.

Water and Energy Sustainability Commitments

A central design feature of the Phoenix campus is a closed-loop cooling system engineered for zero process water use during operations.

The system is intended to eliminate ongoing water consumption as part of the cooling process while enabling precise thermal management for high-density compute environments, a significant consideration given the water constraints facing the Phoenix metropolitan area.

Beyond the facility-level cooling design, Prime Data Centers has committed to procuring Water Restoration Certificates equal to 120% of its annual operating water consumption across its entire portfolio, with the company stating it will maintain that coverage every year. The campus is also committed to sourcing 100% renewable energy.

Economic Impact and Regional Context

Avondale Mayor Mike Pineda offered strong public support for the development, framing the investment in terms of both economic development and responsible infrastructure growth.

"This more than $3 billion investment by Prime with its customers investing an average 2x more represents a major step forward for our local economy, bringing new jobs, long-term growth, and world-class infrastructure to our community," Pineda said.

The Mayor also pointed to the closed-loop cooling technology as evidence that the project is being built with sustainability in mind, describing it as an example of the kind of responsible investment that positions Avondale for long-term success.

Phoenix Campus in the Context of Prime's Broader Expansion

The Avondale groundbreaking comes as Prime Data Centers pursues an aggressive expansion across multiple geographies.

Earlier in May 2026, the company broke ground on a second data center in Sacramento, expanding its regional campus footprint there.

In March 2026, Prime announced plans for a major data center development in Esbjerg, Denmark, extending its international presence.

The company also announced in January 2026 that its Dallas and Sacramento facilities earned ENERGY STAR certification for superior energy performance.

In late 2025, Prime Data Centers and AI infrastructure company Lambda announced a partnership to deliver AI-optimized infrastructure in Southern California.

The company also received a strategic investment from Snowhawk and Nuveen in July 2025.

The PHX01 campus is positioned by Prime as purpose-built to support next-generation AI and high-performance computing workloads, with the company stating the facility's design and mechanical systems are engineered to meet the rigorous demands of those use cases at hyperscale.