Lincoln Property Company Acquires Chandler Data Center, Plans Water-Saving Upgrades
TL;DR
Lincoln Property Company's acquisition provides immediate competitive advantage with turnkey data center space and available utility power in Phoenix's low-vacancy market.
Lincoln will build out three vacant data halls adding 16MW capacity, transition to air-cooled systems, and deliver initial 4.2MW by early 2026.
The cooling system upgrade will save up to 3 million gallons of water monthly, benefiting Chandler's community and environment.
Lincoln returns to manage the same Chandler data center it previously owned, now enhancing it with water-saving technology and expanded capacity.
Lincoln Property Company has acquired a 191,000-square-foot data center in Chandler, Arizona, with plans to develop the facility's vacant space and implement water-saving cooling system improvements. The property at 2500 W. Frye Rd. sits on 14.5 acres within the Price Road technology corridor, positioned at the intersection of the Loop 101 and Loop 202 freeways.
The facility offers 28MW of confirmed utility power served by an existing and dedicated on-site Salt River Project (SRP) substation. It contains four data center halls, one of which is fully leased to a Fortune 500 enterprise user. Lincoln plans to fit out the remaining three halls, adding 16MW of critical capacity with an initial 4.2MW targeted for delivery in early Q1 2026.
A significant environmental improvement involves transitioning the project from an evaporative cooled to air cooled mechanical system, creating the potential for up to 3 million gallons of water savings per month for the City of Chandler. This water conservation effort comes at a critical time as data center expansion continues throughout the Phoenix metropolitan area.
Ryan Sullivan, Lincoln Property Company Executive Vice President and National Data Center Group Leader, noted that Arizona's unprecedented demand from hyperscale, enterprise and neocloud users has pushed local data center vacancy to record lows. The facility will add critical turnkey capacity with immediately available utility power, representing a rare combination in the current market environment.
The acquisition marks Lincoln's return to a property it previously owned. The company originally purchased and managed the facility in 2018 as part of a larger data center portfolio before selling it in 2019. David Krumwiede, Lincoln Property Company Senior Executive Vice President, stated that the company is now positioned to set another performance bar for tenants and the Chandler market at a time when the need for responsible data center space couldn't be higher.
According to CBRE research, metro Phoenix ranks as the nation's fourth largest data center market, with steady demand and absorption pushing vacancy rates below 2%. The Frye Road facility adds to this constrained market inventory, bringing Lincoln's metro Phoenix footprint to 23.2 million square feet of owned and managed space across Class A office and industrial projects. The site is planned for additional development, which was approved by the City of Chandler as part of a development agreement initiated by the property's previous owner. For more information about Lincoln Property Company, visit https://www.lpc.com.
Curated from citybiz