Project Overview

The Goodyear Data Center AZ is a cutting-edge facility built by Microsoft in Goodyear, Arizona, with a current operating capacity of 143 MW.

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The project is to be developed in five buildings (1.2 million square feet), with Phase I operational in 2024. The three buildings on campus cover approximately 488,000 sq ft of operational space and currently rely on direct evaporative cooling systems that consume water to regulate temperatures.

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The developer assumed that each facility could save up to more than 160 million liters (approximately 42 million gallons) of water annually. This amount is roughly equivalent to filling the Arizona State University Olympic swimming pool 63 times every year.

The Goodyear Data Center is one of the largest upcoming data centers of Microsoft, aligned with the goal of achieving carbon-free operations by 2030. The campus is powered by 100% renewable energy, including solar energy. Water-efficient cooling systems are tailored to the region’s desert climate, minimizing resource consumption.

Microsoft Data Center Goodyear, AZ Project Location

Microsoft’s Goodyear, Arizona Data Center campus is located in the West Valley submarket of the greater Phoenix area, Maricopa County. It is situated at 3785 Citrus Rd, Goodyear, Arizona 85338, USA.

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It is part of Microsoft’s West US 3 Azure region (Americas), which also includes other data center sites in El Mirage and the broader West Valley.

Project Background

The Goodyear Data Center Project originated from an initial two‑building hyperscale plan and has evolved into a 143‑MW, five‑building AI‑focused campus integrated into the West US 3 (Arizona) Azure region.

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For development purposes, the developer bought the first site south of Goodyear Airport in August 2018 for USD 48 million. The second site was purchased for USD 37 million in April 2019.

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Microsoft announced the two data center campuses in Goodyear, Arizona (AZ), in July 2019, along with one data center project in El Mirage (AZ). The campus was originally designed as two buildings: PHX‑10 (about 245,000 sq ft) and PHX‑11 (about 243,000 sq ft), with room for up to three additional buildings.

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In June 2021, Microsoft launched its “West US 3” Azure region in Arizona, anchored by the Goodyear and El Mirage campuses, and marketed as a sustainable, 100% renewable-powered region.

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In 2023, it announced its plan to redesign its expansion plan (PHX‑70/PHX‑71 Buildings 4 and 5) to remove evaporative cooling and switch to air‑cooled, AI‑optimized thermal architectures, introducing a “zero‑water” pilot that avoids roughly 42 million gallons of fresh water per year per building.

Goodyear Data Center AZ Project Developers

Microsoft Corporation, one of the largest data center companies in the world, serves as the primary developer and operator for its Goodyear, AZ data center campus. The project involves self-development, supported by local agreements and contractors.

Microsoft Data Center Goodyear, AZ Project Current Status

As of March 2026, Phases I & II of the project are operational, supporting Azure's West US 3 region with a total IT load of 143 MW across the built capacity. The remaining 3-5 phases are in the expanding phase.

On 6 March 2026, Microsoft and Goodyear signed an agreement aiming to address long-term water resource constraints in the region. According to the agreement, Microsoft committed USD 36 million toward the USD 90 million expansion of the 157th Avenue Wastewater Treatment Plant, an ambitious project designed to enhance reclaimed water capacity and enable the city to grow.

This aligns with Microsoft's next-gen designs launched in 2024, shifting from water-cooled to air-cooled systems amid concerns about local water infrastructure.

Microsoft Data Center Goodyear, AZ Project Cost

The total estimated cost for the Goodyear Data Center in Arizona is approximately USD 85 million. Microsoft purchased the first site for USD 48 million and the second site for USD 37 million.

Project Timeline

Project Scope

The following are the project scopes of the Goodyear Data Center, AZ project:

• Water Conservation: Switching from an evaporative cooling system to an air-cooled system can save up to 160 million liters (approximately 42 million gallons) of water annually.
  

• Building block for AI: The project is increasingly described as an AI‑optimized node, featuring high‑density server racks, advanced chip‑level cooling, and low PUE targets, reflecting Microsoft’s shift toward GPU‑heavy workloads in this region.
  

• Sustainable biofuel: The facility uses sustainable biofuel to operate emergency backup generators, reducing the environmental impact of diesel-powered redundancy systems.
  

• Offers redundant fiber links: The facility provides redundant fiber links to Phoenix's top-tier connectivity hub and direct, low-latency connections to Azure's West US 3 region for optimal cloud/AI performance.​
  

Phases of Goodyear Data Center AZ Project

The Goodyear Data Center Project, developed by Microsoft, is built in five phases. Out of it, Phases I & II are operational, Phase III is under construction, and Phases IV & V are in the expansion phase. Below follows a detailed description of all the phases:

Phase I

Phase I of the project, also known as PHX-10, is fully operational as of 2026. The site was purchased in August 2018 for USD 48 million. Construction began in 2020 and was fully operational by 2024. It is built with a Direct Evaporative Cooling (DEC) system spanning 245,000 sq ft.

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The 2019 Goodyear agreement granted Microsoft special approvals to begin building Phase 1 data centers before completing detailed site plans, accelerating early deployment to meet initial AI and cloud computing demands.

Phase II

Phase II, also known as PHX-11, has been operational since 2024-2025. The site spanning 243,000 sq ft was purchased in April 2019 at USD 37 million. It uses the same Direct Evaporative Cooling (DEC) system, contributing to a current 143 MW built capacity.

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Phase II doubled early capacity to support Azure West US 3's cloud expansion, bridging to Phase 3 construction. It aligns with sustainability goals via 100% renewable solar PPA while using evaporative cooling.

Phase III

Phase III of the Goodyear Data Center Project in AZ is approximately 250,000 sq ft, contributing to the first three buildings' combined 488,000 sq ft footprint. It is in the construction phase and is expected to become operational in 2026.

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It aligns with Microsoft's USD 36M wastewater plant contribution to support the early phases' water needs. Furthermore, it is the final evaporative-cooled phase before air-cooling pilots in Phases 4-5.

Phase IV

Phase IV is a 245,000 sq ft, high-density AI-ready design. Currently in the pre-construction phase, full completion is expected by the end of 2026. It is the first zero-water, air-cooled structure to use advanced chip-level thermal management.

Phase V

Phase V is a 250,000 sq ft, mirroring Phase 4 for modular symmetry. Currently, in the planning and expansion phase, the building is expected to become operational by 2027. It is fully air-cooled, eliminating the need for evaporative systems.

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Phase 4-5 racks are designed for high-power GPU clusters handling AI workloads (up to 100kW per rack), powered entirely by renewable energy through Microsoft's Sun Streams 2 solar Power Purchase Agreement.

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Microsoft Data Center Goodyear, AZ Project Contractors

Benefits

The following are the benefits of the project:

• Use of advanced technology: The facility is designed using advanced technology and eco-friendly measures,  helping businesses thrive in an increasingly digital world.
  

• Provides sustainable cloud solutions: The Goodyear Data Center Facility is a part of Microsoft Azure’s mission to supply organizations with reliable, innovative, and sustainable cloud solutions.
  

• Data center is powered by clean energy: The project receives renewable electricity from the Sun Streams 2 solar plant, reinforcing Microsoft’s commitment to powering its global data center footprint with clean energy.
  

• Reduce environmental risks: The data center facility uses sustainable biofuel to operate emergency backup generators, further reducing the environmental impact.
  

• Easy access to cloud services: PHX70 offers ultra-low-latency connections to Microsoft’s global Azure network, providing seamless access to cloud services across the United States and beyond.

Conclusion

Microsoft’s Goodyear Data Center project in Arizona marks a major investment in hyperscale cloud and AI infrastructure, boosting the economy and meeting the company’s sustainability goals. It is a 143 MW facility, designed to support Microsoft’s West US 3 cloud region with high‑capacity, low‑latency services for enterprise and government workloads.

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The facility is powered entirely by 100% renewable energy and has developed a water-efficient, zero-water cooling system, saving up to 160 million liters (approximately 42 million gallons) of water annually.

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The project sets a model for how hyperscale data centers can responsibly scale in arid, water-constrained environments by investing in municipal wastewater infrastructure and piloting next-generation air-cooled and solar-coupled systems.

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