Commercial real estate firm Lincoln Property Company has announced the purchase of a 191,000-square-foot, partially occupied data center on 14.5 acres at 2500 W. Frye Road in west Chandler.

The company plans to build out the facility’s vacant shell space, delivering new “turnkey” data center inventory and making cooling system improvements that a news release state could save millions of gallons in monthly water consumption.

No dollar figures were mentioned in the news release.

The data center property is located near the Loop 101 / Loop 202 freeway interchange, within the Price Road technology corridor, the release states.

The Frye Road property offers 28 megawatts of confirmed utility power, served by an existing and dedicated on-site Salt River Project substation, the release states.

It features four data center halls, one of which is fully leased to a Fortune 500 enterprise user, the release claims. Lincoln plans to fit out the remaining three halls, adding 16 megawatts of capacity and positioning the building for immediate lease-up.
An initial 4.2 megawatts is targeted for delivery early in the first quarter of 2026.

Lincoln will also transition the project from an evaporative cooled to air cooled mechanical system, the release states, creating the potential for as much as three million gallons of water savings per month for the city of Chandler’s system.

The site is planned for additional development, which was approved by the city of Chandler as part of a development agreement initiated by the property’s previous owner.

“Arizona’s unprecedented, immediate demand from hyperscale, enterprise and neocloud users has pushed local data center vacancy to record lows,” Lincoln Property Company executive vice president and national data center group leader Ryan Sullivan. “This facility will add critical turnkey capacity with immediately available utility power. It’s a rare combination that we look forward to delivering as part of our ongoing value-add data center strategy.”

Lincoln will serve as the building’s property manager. Leasing will be handled by Lincoln’s data center leasing team.

Lincoln has a unique history at the Frye Road property, the release states, serving as its owner after acquiring the building in 2018 as part of a larger data center portfolio.

It sold the asset in 2019 to the current seller.

Lincoln Senior Executive Vice President David Krumwiede said when his company sold the asset, hen we sold the asset, it was to an entity that was equally committed to preserving and enhancing its value.

“Now, it is our turn to set yet another performance bar for tenants and the Chandler market, at a time when the need for responsible data center space couldn’t be higher,” Krumwiede said.

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%, the release states.

The Frye Road facility adds to that new data center inventory, bringing Lincoln’s metro Phoenix footprint to 23.2 million square feet of owned and managed space across class-A office and industrial projects such as Park303, Luke Field, Goodyear AirPark, Union and the Grand at Papago Park Center.

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