How Your Organization Can Benefit From Arizona’s CDC Program

by Chloe Place

The digital age has increased our reliance on data exponentially. As businesses and communities become more data-driven, the need for reliable and efficient data centers grows. Arizona, particularly the Greater Phoenix area, continues to be an attractive location for Computer Data Centers (CDCs), thanks in part to the state’s innovative Computer Data Center Program. Administered by the Arizona Commerce Authority (ACA) in conjunction with the Arizona Department of Revenue (ADOR), the program aims to encourage CDC operation and expansion within the state. Here, we delve into why this program is invaluable and how the Greater Phoenix area uniquely benefits from it.

The Computer Data Center Program: Encouraging Growth and Sustainability

Established in 2013 by the Arizona Legislature, the Computer Data Center Program offers Transaction Privilege Tax (TPT) and Use Tax exemptions at the state, county, and local levels for qualifying purchases of CDC equipment. The incentives are designed to foster economic development and technological advancement in the state. Particularly attractive is the option for extended tax exemptions for CDCs that qualify as Sustainable Redevelopment Projects, thereby encouraging more environmentally responsible data center management.

The Value to the Community and the State

In addition to providing financial incentives to business owners, operators, or qualified co-location tenants, the program brings broader benefits to Arizona. By attracting businesses to establish data centers, the program stimulates job creation and provides economic uplift through increased capital investment. Importantly, the program contributes to a growing ecosystem of tech companies and startups, making Arizona a burgeoning tech hub.

Greater Phoenix, The Ideal Locale for CDCs
The Greater Phoenix area presents a compelling case for data center operation for several reasons:

  • Climate Stability: Contrary to popular belief, the warm but stable climate of Phoenix is actually advantageous for CDCs. The area is less prone to natural disasters like earthquakes or hurricanes, ensuring a more consistent and secure operation of data centers.
  • Robust Infrastructure: The well-established infrastructure in Phoenix is another point in its favor. The area boasts advanced connectivity options and a reliable electricity supply, which significantly reduces startup and operational costs for CDCs.
  • Strategic Location: Phoenix’s geographical location offers easy access to both the West Coast and inland states, making it a strategic point for data routing and storage. Its proximity to major markets ensures that data can be moved efficiently, reducing latency and increasing speed.

Arizona’s Computer Data Center Program serves as an excellent model for how targeted incentives can drive industry growth, economic development, and technological advancement. Its strategic benefits are perhaps most clearly realized in the Greater Phoenix area, which offers a stable climate, robust infrastructure, and a large pool of skilled labor. For anyone considering expanding or setting up a data center, Arizona, and particularly Greater Phoenix, should be at the top of the list.

For more information on how to take advantage of Arizona’s Computer Data Center Program, you can visit the Arizona Commerce Authority’s website.

The DCX team is here to help you navigate these benefits, contact us today to discuss further.


This article is intended to provide general information and should not be considered financial or legal advice. Always consult with qualified professionals for specific guidance.

Sources and Additional Reading

The insights and information presented in this blog have been derived from authoritative resources to ensure accuracy and comprehensiveness. For those interested in delving deeper into the specifics of Arizona’s Computer Data Center Program, the following resources have been invaluable:

Arizona Commerce Authority’s Computer Data Center Program Overview: This page provides a detailed overview of the program, explaining its objectives, eligibility criteria, and benefits.

Computer Data Center Program PDF by the Arizona Commerce Authority: This document serves as a comprehensive guide to the program, offering intricate details and definitions that pertain to Computer Data Centers in Arizona.

We encourage you to visit these sites for a more in-depth understanding of how the program works and how it can be beneficial for businesses considering data center operation or expansion in Arizona.

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