Key Takeaways

  • RadiusDC signed an agreement to acquire the Phoenix data center and colocation business of phoenixNAP
  • The deal will establish the new Phoenix I campus, with planned growth to roughly 26 megawatts of IT capacity
  • phoenixNAP retains approximately 80 percent of its global business and will remain a tenant in the facility

RadiusDC, a provider known for its focus on highly connected and resilient data center environments, has entered into a definitive agreement to acquire the Phoenix data center and colocation business of phoenixNAP. The move puts RadiusDC in a stronger position within one of the fastest growing data center markets in the United States. Although the transaction is still subject to regulatory approvals and other standard closing conditions, it is slated for completion in the second quarter of 2026.

Phoenix is no longer an emerging market; it is now a core data center hub, driven by a mix of enterprise demand, cloud presence, and a relatively favorable power environment. For RadiusDC, the acquisition represents both immediate operational capacity and a long runway for expansion.

The deal includes phoenixNAP’s existing Phoenix colocation facility, interconnection assets, and development rights tied to future campus buildouts. These components will form RadiusDC’s new Phoenix I campus. It is a combination of an already operational data center and an expansion plan backed by committed utility capacity. That particular detail is important, since power availability has become one of the biggest constraints in metropolitan data center development. In many regions, access to utility allocations can determine which providers can meaningfully scale.

Not everything changes hands, though. Approximately 80 percent of phoenixNAP’s global business will remain outside the transaction. This includes phoenixNAP’s Bare Metal Cloud platform and its network services portfolio. Both will continue to be operated independently by phoenixNAP and its current leadership team. phoenixNAP will also stay on site as a tenant in the Phoenix facility, which creates continuity for existing customers and avoids the abrupt operational shifts sometimes seen in data center acquisitions.

Once closing occurs, RadiusDC plans to initiate an expansion at the current facility, known as DC1. The company intends to increase DC1’s total IT load to 8 megawatts. In parallel, RadiusDC will push forward the development of DC2, a second building designed to support up to 18 megawatts of additional critical IT power. The first phases of DC2 are expected to come online in the first half of 2028. If both phases progress as outlined, the Phoenix I campus could eventually scale to approximately 26 megawatts of capacity.

This development reflects the broader trend of operators pairing existing interconnection hubs with new greenfield capacity. Customers often want both the density and connectivity of a mature environment and the expansion room that a newer build can offer. It is not easy to find both in a single metropolitan area, especially in markets experiencing sustained growth.

By combining established networking ecosystems, operational infrastructure, and future development potential, the Phoenix I campus is positioned to offer a scalable environment for enterprises, cloud adopters, and communication providers. The timing also aligns with broader migration and business growth across the Southwest, which has attracted data center operators looking to diversify away from highly constrained markets like Silicon Valley.

As for market reach, the acquisition will expand RadiusDC's footprint that already spans Miami, Atlanta, Denver, Nashville, and Indianapolis. The company has been emphasizing a strategy of bringing together established connectivity ecosystems with new development capacity in major metro areas. The Phoenix campus appears to fit neatly into that playbook. This move may signal a broader consolidation push among regional operators, particularly as demand for power-intensive deployments continues to rise.

Upon closing, the on-site operations team in Phoenix will join RadiusDC, maintaining continuous support for existing customers. Smooth transitions are not always guaranteed in facility acquisitions, which makes this point notable for businesses that depend on low disruption.

Financial advisors and legal partners also played clear roles in structuring the transaction. RadiusDC received financial advisory support from J.P. Morgan, while Gibson Dunn & Crutcher LLP and Snell & Wilmer LLP served as transaction and local counsel. phoenixNAP worked with BofA Securities as exclusive financial advisor and Cleary Gottlieb Steen & Hamilton LLP as legal counsel.

Mike Krza, Chief Executive Officer of RadiusDC, described the acquisition as a significant strengthening of the company’s national platform. He pointed to the Phoenix facility’s established interconnection ecosystem, customer diversity, and expansion headroom as key advantages. According to Krza, integrating the campus into the broader RadiusDC portfolio enhances the company’s ability to deliver scalable infrastructure in major urban markets, while preserving the operational reliability that current customers expect.

Looking at the deal in context, it is another marker of how infrastructure providers are reshaping geographic strategies. Some are doubling down on existing metros, others are moving to secondary cities, and still others are locking in utility capacity wherever it becomes available. Phoenix, for its part, has been rising steadily in importance. With this acquisition, RadiusDC is making a clear statement that the region will become one of its long-term anchor markets.