Microsoft 500MW hyperscale lease - Phoenix

Microsoft has signed what is believed to be one of the largest single data centre lease agreements in history, securing 500 MW of capacity across Stream Data Centers' Goodyear campus in the Phoenix metropolitan area. The long-term lease agreement is structured across multiple buildings with phased deliveries extending through 2029.

The deal reflects Microsoft's aggressive expansion of its Azure cloud and AI infrastructure, driven by surging demand for large language model training and inference compute. The Phoenix market offers Microsoft several advantages, including access to abundant solar energy resources, competitive power pricing, and significant land availability for purpose-built hyperscale facilities.

Stream Data Centers has committed to delivering the facilities with advanced power and cooling infrastructure capable of supporting power densities exceeding 40 kW per rack. The campus will incorporate direct liquid cooling systems and on-site solar generation, aligning with Microsoft's commitment to becoming carbon negative by 2030. The transaction represents a landmark moment for the Phoenix market, solidifying its position as one of the top three data centre markets in North America.