The Phoenix data center market, which has a strong 2018 ahead, ended 2017 with a bang: a major wholesale data center agreement and a major development approved in December.

H5 Data Centers, a national co-location and wholesale data center provider, inked a wholesale data center agreement with LeaseWeb USA Inc., a cloud-hosting brand. Under the deal, LeaseWeb will expand to H5 Data Centers’ Phoenix data center location at 2600 West Germann Road in Chandler.

As usual with wholesale lease deals, H5 Data Centers will continue to own and operate the data center, which offers private data center suites for 125 kilowatt and 250 kW increments.

The relationship between LeaseWeb and H5 Data Centers will facilitate LeaseWeb’s U.S. growth while expanding the product offerings for H5 Data Centers’ Phoenix customers. LeaseWeb’s products include dedicated servers, private cloud, network, CDN, cybersecurity and hybrid IT.

Also near the end of the year, the Phoenix City Council approved QTS Realty Trust Inc.'s plans for a 2M SF data center campus at 40th Street and McDowell Road. Last year, an entity formed by the managing partner of the NBA’s Phoenix Suns bid on the vacant 98 acres as the possible site for a new arena, but was outbid  by QTS.

QTS already operates a 380K SF data center in downtown Phoenix and over 25 data centers worldwide.