Pivoting from Warehouse Development to Data Center Expansion
Real estate developer Ryan Companies has filed a rezoning application to transform a previously planned warehouse site into a cutting-edge data center campus. The site, located in Eloy, Arizona, will feature a 400MW data center development, marking a significant investment shift for the company.
Initially intended to host an industrial warehouse complex known as the Southwest Crossing Industrial Park, the 122-acre property is now being repositioned for data center use. This decision reflects Ryan Companies’ strategic pivot to capitalize on the growing demand for data center infrastructure.
Rezoning Application Gains Preliminary Approval
The rezoning request, submitted to the Eloy Planning and Zoning Commission, seeks to change the site’s designation from General Industrial to General Industrial with a Planned Area Development Overlay. During its January 15 meeting, the Commission recommended approval of the request, aligning with city staff’s endorsement of the project with conditions.
Strategic Location in Arizona’s Growing Data Center Market
Eloy is situated in Pinal County, approximately 70 miles south of Phoenix and 50 miles northwest of Tucson. The property, located at the southeast corner of Estrella Road and Houser Road, offers a greenfield site well-suited for large-scale data center development. The region’s proximity to major cities and access to infrastructure makes it an attractive location for hyperscale data centers.
Campus Features and Development Plans
Ryan Companies plans to invest over $470 million in developing the Southwest Crossing Data Center. The campus will span 1.25 million square feet (116,130 sqm) and include up to three 285,120 square-foot (26,490 sqm) data center buildings. Additional substations will be constructed on-site as needed to support the campus’s substantial energy requirements.
The transition to a data center campus comes after the original plan for six industrial warehouse buildings totaling 1.9 million square feet (176,700 sqm) failed to materialize. Ryan Companies’ revised strategy aligns with broader industry trends emphasizing digital infrastructure over traditional industrial facilities.
About Ryan Companies
Founded in 1938 and headquartered in Minnesota, Ryan Companies is a prominent real estate developer with a diversified portfolio. The company has extensive experience in data center projects, including developments for the University of Iowa. Beyond data centers, Ryan Companies specializes in offices, healthcare facilities, life sciences, logistics, retail, and residential properties.
FAQ Section
1. Why did Ryan Companies pivot from warehouses to data centers in Eloy? Ryan Companies likely shifted focus to data centers due to increasing demand for digital infrastructure, which offers higher growth potential compared to traditional industrial warehouses.
2. What makes Eloy, Arizona, an ideal location for a data center campus? Eloy’s strategic location between Phoenix and Tucson, access to infrastructure, and availability of greenfield land make it a favorable choice for large-scale data center developments.
3. What is the significance of a 400MW data center campus? A 400MW campus represents a significant power capacity, enabling it to support hyperscale operations for cloud computing, storage, and networking needs.
4. Who owns the property for the planned data center campus? The 122-acre site is currently owned by Coton City Industrial Park, LLC.
5. How much will Ryan Companies invest in the Southwest Crossing Data Center? The company plans to invest over $470 million in the development.
