Phoenix is a strategic market for Digital Realty. SRP and APS, ourlocal utility partners, have a long history of maintaining robust,stable and competitively priced power. SRP and APS also offer greensolutions that support our company’s environmental build standards.”– Rick Berk , Vice President, Portfolio Management-West, Digital Realty

Greater Phoenix: Optimal Business EnvironmentGreater Phoenix offers quick access to millions of customers in a market that provides easy accessibility anda broad, talented workforce. The low-catastrophic risk and virtually untouched climate provides stabilityin a region built to house mission-critical information. The low cost of living and unparalleled quality of lifecreates the ideal environment for success.

Did you know?

Business operating costs in Arizona are approximately 40 percent lower than inneighboring California

Low Catastrophic Risk - three AZ cities rank among the top 10 UScities for lowest natural disaster risk

Two primary electric utilities – APS and SRP – rank as top business service providers byJ.D. Power & Associates, providing an estimated average cost of power at $.059/kWh which comes from a mixed power source including coal, natural gas, nuclear and renewable

Phoenix boasts a dependable infrastructure that includes one of the top five regional fiber optic deployments in the US and more than 156,000 miles of fiber optic network capacity

In 2010, the region’s total labor force reached 2 million people and is projectedto increase 85 percent over the next two decades – that’s four times faster than thenational growth estimate of just 20 percent!

While Phoenix has a longstanding history of corporate data centers and disaster recovery environments, the market is maturing into a top data center market in the country with the addition of national colocation operators.”– Mark Bauer, National Director Data Center Solutions (DCS) group, Jones Lang LaSalle

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Greater Phoenix: The Ideal Climate for Mission Critical

The Greater Phoenix Market is rapidly establishing itself as a regionalhub for major colocation providers.” – Luke Denmon , Critical Environment Practice, CBRE,

The low chance for natural disasters positions Greater Phoenix as a top choice for data centers, but many neglect to recognize the large potential for reduced amounts of energy usage as a result of the stable climate.

Greater Phoenix offers mild weather for the majority of the year, creating the availability for economizer, or “free cooling” strategies, thus eliminating the need for expensive mechanical refrigeration. In some instances, the outside air is already the desired temperature and mechanical refrigeration, such as chillers, can be turned off.

Inexpensive alternatives such as cooling towers and heat exchangers, which chill water to the appropriate temperature, are also possible in Greater Phoenix. This can significantly reduce the amount of energy usedin a data center.

With cabinet arrangements using enclosed hot aisles, the Phoenix climate offers

• Reduced chiller operation up to 40% of the year• Provides free air side cooling up to 38% of the year• Provides water side free cooling (or no chiller operation) up to 41% of the year Should the facility operate with direct evaporative cooling strategies, the data center can potentially operate up to 70% of the year without the use of chillers.

Source: SmithGroup

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Greater Phoenix: Positioned for EfficiencyNestled between an array of mountain ranges, the appropriately–nicknamed Valley of the Sun provides a stable and low catastrophic-risk environment, ideal for a mission-critical facility.

This ideal climate is neighbor to the world’s 8th largest economy, California, and with Phoenix Sky Harbor International Airport located in the heart of the city, Greater Phoenix is positioned for success nationally and globally. Home to US Airways’ headquarters and a Southwest Airlines hub, Greater Phoenix is privileged to provide effortless travel accommodations and direct flights to most domestic and international cities daily.

In addition, the accessibility to surrounding cities also positions Phoenix for maximum business efficiency.Cities like Los Angeles, San Diego and the U.S.-Mexico border are within a half-day’s drive.

2 HOUR

3 HOUR

4 HOUR

1 HOUR

FLIGHT TIME

QUANTIFYING CATASTROPHE RISK

Highest Hazard

Lowest Hazard

32+

16-24

16-24

24-32

24-328-16

8-16

% g

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Greater Phoenix Boasts Some of the Best in the Biz These companies and more have already realized the benefits of doing business in Greater Phoenix.

E X P A N D W I T H U S

No

t ab l e D a t a C e n t er s

Featured Co-Located Data Centers:

Digital Realty:

Building 1: 120 East Van Buren• 98,000 SF raised floor• 33 MVA of utility power

Building 2: 2121 South Price•139,000 SF raised floor• 30 MW of power via onsite DLR owned N+ substation with provisions to go to 60 MW

i/o:

Phoenix One• 180,000 SF raised floor• Dedicated 42 MVA substation onsite with power densities up to 250 W/SF

Phoenix NAP:• 160,000 SF raised floor• 20 MW capacity with power densities of 200 W/SF and above

OPERATINGENVIRONMENT

GREATERPHOENIX’S

UNIQUE VALUEPROPOSITION

Greater Phoenix:Fertile Ground for GrowthGeographic Position

Access to major markets, customer base• Greater Phoenix economy represents 75 percent of state economy• Sky Harbor Airport handles 38 million passengers annually and the region also boasts Phoenix-Mesa Gateway airport and eight additional general aviation airports• Sky Harbor offers daily direct flights to hundreds of domestic cities and international cities throughout Canada, Mexico and the United Kingdom• Home to US Airways’ headquarters and a Southwest Airlines hub• Quick drive times to Los Angeles, San Diego and areas of Mexico

Operating EnvironmentAdvantageous business climate• Minimal regulation • A Right to Work state• No sales tax on manufacturing equipment• No inventory tax• 90-day-or-less permitting• Low total payroll costs

InfrastructureAn environment to support and grow industry• Low catastrophic risk – three AZ cities rank in the top 10 for lowest natural disaster risk• One of top 5 regional fiber optic deployments in US• More than 156,000 miles of fiber optic network capacity• Top-ranked utilities APS and SRP, with electricity costs in Arizona approximately 30% less than in California• Faster internet speeds than any bordering state

INFRASTRUCTURE

GEOGRAPHICPOSITION

HUMAN CAPITAL

Human CapitalMature talent and workforce pipeline• Maricopa County population is more than 3.8 million and expected to grow to approximately 7 million in the next 20 years• Arizona State University – graduates 2,600 business students per year with 75K across four campuses• Maricopa Community Colleges provides job-skill training to 270K annually• University of Phoenix specializes in business curriculum and is the largest private university in the country• A relatively young region, with a median age of 34.7 – three years younger than the average age for US metropolitans

IncentivesIncentives Rewards qualified companies• Arizona Competitiveness Package - $9K per job credit over three years for new qualified jobs - Reduces commercial and industrial real and personal property taxes by 10%. Assessment rate being lowered from 20 to 18% - Starting in 2014, corporate income tax rate steadily decreases to 4.9% - Starting in 2014, Sales Factor ramps up to 100%

• Job Training Program - Up to $8K in grants per employee for a maximum $1.5M - Awarded grants up to 75% of expenses incurred while providing technology skills training

• Additional Depreciation - Additional depreciation encourages new capital investment by quickly reducing personal property tax liability - Companies not receiving property tax incentives under the Government Property Lease ExciseTax Program (GPLET) programs can elect to take additional depreciation on their personal property

LifestyleGrowing arts & culture community, plentiful outdoor sports & adventure• Median household income is $54,713• Arizona averages 334 sunny days per year• Home to five professional sports teams and more than 325 golf courses• Flourishing arts and culture scene• Thousands of restaurants, boutiques and attraction• World-class zoo and renowned museums• Drive to beaches or the mountain pines and arrive by noon

INCENTIVES

GREATERPHOENIX’S

UNIQUE VALUEPROPOSITION

LIFESTYLE

Mission Critical

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GPEC: Your Connection to the FutureThe Greater Phoenix Economic Council (GPEC) is Arizona’s premier economic development organization.

Representing Maricopa County, 20 communities and more than 150 private investors, GPEC connects companies with Arizona’s key leaders and influencers, and provides site-selection services at no cost.

We aim to provide an easy and transparent way to evaluate our market with a focus on speed and efficiency.

MARICOPA COUNTY

APACHE JUNCTION

AVONDALE

BUCKEYE

CASA GRANDE

CHANDLER

FOUNTAIN HILLS

GILA BEND

GILBERT

GLENDALE

GOODYEAR

MARICOPA

MESA

PHOENIX

PEORIA

QUEEN CREEK

SCOTTSDALE

SURPRISE

TEMPE

TOLLESON

WICKENBURG

Member Communities

Greater Phoenix Economic Council602.256.7700 | 1.800.421.4732 | info@gpec.org

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council (groups)