Arizona land developer Vermaland, LLC unveiled plans for a $33 billion data center industrial park in Pinal County that would become the largest such development in the United States, positioning the Phoenix-Tucson corridor to compete directly with Northern Virginia’s “Data Center Alley” for tech industry investment.
The 3,300-acre complex would support up to 3 gigawatts of power capacity, rivaling the scale of major metropolitan markets and capitalizing on Arizona’s emergence as the nation’s fourth-largest data center market by total inventory.
The project comes as data center construction reaches record levels nationwide, with more than 6.35 Gigawatts of capacity under construction across North America as of late 2024, according to commercial real estate firm CBRE. Phoenix alone saw 67% inventory growth in 2024, outpacing all primary markets except Atlanta.
“This development positions Arizona to capture a meaningful share of the AI infrastructure boom,” said Kuldip (Ken) Verma, CEO of Vermaland. “With power costs significantly below California and growing tech company demand, we’re creating the next generation of digital infrastructure.”
DEEPER DIVE: Pinal County: How a rising region continues to climb
INDUSTRY INSIGHTS: Want more news like this? Get our free newsletter here
Strategic Location Offers Multiple Advantages
The development sits within a federally designated Qualified Opportunity Zone in the Phoenix-Tucson megapolitan corridor, offering investors significant tax advantages for long-term capital investments. Opportunity Zone projects can provide up to 15% reductions in capital gains taxes for investments held 10 years or longer.
Vermaland’s project incorporates a hybrid energy system combining solar, natural gas, battery storage and grid connectivity for continuous operations. Vermaland’s portfolio supports a wide range of industries, with ongoing commitments across 16 solar farm sites totaling over 10,000 acres. These projects are projected to generate over 2 Gigawatts of clean energy capacity, enough to power 400,000 homes, further supporting Arizona’s energy transition.
Market Timing Aligns with Industry Growth
The announcement comes as major technology companies accelerate data center investments to support artificial intelligence applications. Meta announced plans to invest between $60 billion and $65 billion in 2025 primarily for AI and data center infrastructure, while the federal government’s $500 billion Stargate initiative aims to build 20 large AI data centers nationwide.
Economic Impact Expected to Exceed State Averages
A separate 1,700-acre portion of Vermaland’s broader development has received Industrial-2 zoning approval for data centers, gas power plants, battery storage and solar installations. Multiple additional properties are in various stages of development planning.
Data centers in Arizona generated $539 million in economic output in 2020, supporting more than 2,500 jobs in construction and operations, according to research firm Mangum Economics. The industry contributed at least $85 million in state and local tax revenue.
Phoenix Mayor Kate Gallego proclaimed July 5, 2023, as Vermaland Recognition Day, citing the company’s pivotal role in sustainable development and economic growth.
