RadiusDC Expands Footprint with Phoenix Data Center Acquisition

Denver-based RadiusDC has entered into a definitive agreement to acquire the Phoenix data center and colocation business of phoenixNAP, strategically expanding its presence in the southwestern United States. The transaction, expected to close in the second quarter of 2026, will establish RadiusDC’s Phoenix I campus and significantly increase critical IT capacity in the region.

Expanding Capacity in a Key Market

The acquisition includes an existing Phoenix colocation facility, interconnection infrastructure, and development rights for future expansion. RadiusDC plans to immediately expand the existing facility, DC1, to 8 megawatts (MW) of IT power capacity. A second facility, DC2, is planned to support up to 18 MW of additional critical capacity, with initial phases coming online in the first half of 2028. This will bring the total potential capacity of the Phoenix I campus to approximately 26 MW. RadiusDC

Strategic Importance of Phoenix

The Phoenix metropolitan area is experiencing rapid growth as a data center hub, driven by its favorable climate, relatively low power costs, and robust fiber connectivity. RadiusDC CEO Mike Krza emphasized the strategic importance of the acquisition, stating that it “strengthens RadiusDC’s national platform and expands our ability to serve customers in one of the country’s most significant connectivity markets.” JSA.net

Operational Continuity for phoenixNAP

Despite the acquisition, phoenixNAP will maintain a significant presence in the Phoenix facility. Approximately 80% of phoenixNAP’s global business, including its Bare Metal Cloud and network service platforms, will continue to be independently owned and operated by phoenixNAP and its existing management team. PhoenixNAP will remain a tenant in the Phoenix facility, ensuring continuity for its customers. inbusinessphx.com

RadiusDC’s Growth Strategy

This acquisition aligns with RadiusDC’s broader strategy of combining established connectivity ecosystems with new development capacity in key metropolitan locations, including Miami, Atlanta, Denver, Nashville, and Indianapolis. RadiusDC By securing strategic capacity in these markets, RadiusDC aims to provide scalable infrastructure solutions to meet the growing demands of connectivity-driven businesses.

Key Takeaways

• RadiusDC is acquiring phoenixNAP’s Phoenix data center and colocation business.
• The Phoenix I campus is planned to scale to 26 MW of total IT power capacity.
• phoenixNAP will remain a tenant and continue to operate its global Bare Metal Cloud and network service platforms.
• The transaction is expected to close in the second quarter of 2026.