Lincoln Property Company Acquires Chandler Data Center to Address Critical Phoenix Market Shortage

Lincoln Property Company announced the purchase of a 191,000-square-foot data center in Chandler, Arizona, with plans to develop the facility's vacant space into turnkey data center inventory while implementing cooling system improvements that could save up to 3 million gallons of water monthly. The Frye Road property, located at the intersection of Loop 101 and Loop 202 freeways within the Price Road technology corridor, offers 28MW of confirmed utility power served by an existing and dedicated on-site Salt River Project substation.

The facility features 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. The company will transition the project from an evaporative cooled to air cooled mechanical system, creating significant water conservation benefits for the City of Chandler. According to CBRE, metro Phoenix ranks as the nation's fourth largest data center market, with steady demand and absorption pushing vacancy rates below 2%.

Lincoln Executive Vice President and National Data Center Group Leader Ryan Sullivan emphasized the strategic importance of the acquisition, stating 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 transaction marks Lincoln's return to the Frye Road property, which the company previously owned after acquiring the building in 2018 as part of a larger data center portfolio before selling it in 2019.

Senior Executive Vice President David Krumwiede noted that Lincoln originally purchased and managed the facility to achieve its highest and best use, and now aims to set another performance bar for tenants and the Chandler market. The site is planned for additional development that was approved by the City of Chandler as part of a development agreement initiated by the property's previous owner. The Frye Road facility adds to Lincoln's robust metro Phoenix footprint, which now totals 23.2 million square feet of owned and managed space across Class A office and industrial projects. For more information about Lincoln Property Company, visit https://www.lpc.com.