#United States #Phoenix #AI Infrastructure #Data Center #Vermaland

Vermaland Plans $33 Billion Data Center Industrial Park

In a groundbreaking announcement, Vermaland, LLC, an Arizona-based land developer, has unveiled plans for a monumental data center industrial park that is set to transform the technological landscape of the region. With an astounding investment of $33 billion, this project aims to establish the largest data center complex in the United States, strategically positioned to compete with the technology investment hubs like Northern Virginia’s renowned ‘Data Center Alley.’

Project Overview

Situated in the Phoenix-Tucson corridor, the proposed industrial park will cover an expansive 3,300 acres and is designed to accommodate up to 3 gigawatts of power capacity. This ambitious development comes at a crucial time as data center construction experiences an unprecedented boom nationwide. Recent data from commercial real estate firm CBRE indicates that as of late 2024, there is over 6.35 gigawatts of capacity currently under construction across North America, demonstrating a surging demand for data centers.

Key Advantages of the Development

Kuldip (Ken) Verma, CEO of Vermaland, highlighted that this new project will allow Arizona to grab a significant share of the ongoing AI infrastructure boom. He stated, “With power costs significantly lower than those in California and a growing demand from tech companies, we are paving the way for the next generation of digital infrastructure.” The site is strategically located within a federally designated Qualified Opportunity Zone, offering investors substantial tax benefits, including potential reductions of up to 15% in capital gains taxes for investments held for a decade or longer.

Energy Efficiency and Sustainability

Vermaland’s data center will utilize a hybrid energy system that integrates solar power, natural gas, battery storage, and connections to the grid to ensure continuous operations. The company has committed to sustainability, with existing projects across 16 solar farm sites totaling over 10,000 acres, forecasted to generate over 2 gigawatts of clean energy capacity, enough to power approximately 400,000 homes. This approach showcases Arizona’s commitment to the transition to renewable energy, making it a prime location for data center operations.

Market Timing and Growth Expectations

The timing of this announcement aligns perfectly with the rapid expansion seen in the tech sector. Large firms such as Meta are predicted to funnel between $60 billion to $65 billion into AI and data center infrastructure alone in the next fiscal year. Furthermore, the federal $500 billion Stargate initiative aims to construct 20 large AI data centers across the nation, further solidifying the need for enhanced data capacity.

Economic Impacts

The economic impact of the data centers operating within the state is substantial. According to research from Mangum Economics, data centers in Arizona generated approximately $539 million in economic output in 2020, supporting over 2,500 jobs across construction and operational sectors. With the industry also contributing around $85 million to state and local tax revenues, the new industrial park is expected to exceed these averages, fostering job growth and economic sustainability for the region.

In recognition of Vermaland's contributions toward sustainable development, Phoenix Mayor Kate Gallego declared July 5, 2023, as Vermaland Recognition Day.

Summary

Founded in 2006, Vermaland specializes in land development, focusing on solar energy, industrial projects, and data center infrastructure. With a land control portfolio encompassing 25,000 acres, which includes the largest collection of parcels ranging from 50 to 1,200 acres in Metro Phoenix, Vermaland is well-positioned to spearhead this monumental project.

For ongoing updates or more information about Vermaland and its initiatives, please visit Vermaland.com.

As the digital landscape continues to evolve, this project not only signifies a leap forward in the technological realm but also reaffirms Arizona’s status as a burgeoning hub for the data industry, enhancing its attractiveness to tech investments and innovations.