GI Partners Acquired Phoenix Data Center Site
The firm purchased a 5.43-acre property at 7th Avenue and Grant Street for $14.7 million.
Updated on Sept. 23, 2026 in Data Centers
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Should local development projects proceed even if they face new zoning rule challenges?
GI Partners has completed the purchase of a 5.43-acre site in Phoenix for $14.7 million. The acquisition of the land, located at 7th Avenue and Grant Street, secures the plot for ongoing data center development.
Why it matters
The successful transaction signals that the data center project remains viable despite potential threats from local zoning regulation changes. This move allows the firm to proceed with development in a key metropolitan market.
The 5.43-acre project site is located at the intersection of 7th Avenue and Grant Street. The land was acquired by GI Partners for $14,720,919, significantly higher than its 2012 purchase price of $3.15 million.
The players
GI Partners
GI Partners is a private investment firm that manages institutional capital and specializes in infrastructure and data center developments.
LKY Development
LKY Development is a real estate firm that previously held ownership of the Phoenix property.
The details
The property changed hands through a land sale transaction between GI Partners and the former owner, LKY Development. The deal moves forward even after the implementation of new municipal zoning rules that previously threatened the development project.
Timeline
LKY Development purchased the site in 2012.
GI Partners completed the site purchase on September 17, 2026.
The Tech Race
This investment follows a broader trend of institutional firms aggressively securing urban land parcels for high-capacity computing infrastructure. The project's advancement demonstrates how developers are navigating complex zoning environments to compete in the rapidly expanding digital real estate market.
Local residents and businesses may observe site preparation work following the official change in property ownership. The development aims to expand regional computing capacity, potentially improving digital service infrastructure for the Phoenix area.
The takeaway
The successful acquisition indicates that large-scale developers are continuing to bet on the Phoenix market despite regulatory hurdles. This transaction highlights the high demand for strategic land locations capable of supporting modern data center requirements.
Further reading
For additional context on local infrastructure expansion, visit our Data Centers section.
Live Poll
Should local development projects proceed even if they face new zoning rule challenges?
