CHANDLER, Ariz., July 7 — In March 2024, thieves stole over $100,000 worth of copper wire from a data center construction site in Chandler, Arizona, according to the Chandler Police Department.
The site was being built for a major cloud provider, whose name has not been disclosed. The thieves cut through fencing and removed copper grounding wire and cabling from partially built structures.
The incident is one of several in Arizona, where data center construction has boomed due to tax incentives and low energy costs. Arizona had 25 data centers in 2023, with 10 more under construction, per the Arizona Commerce Authority.
The state offers a 10-year property tax exemption for data centers, enacted in 2013, which has driven the rapid expansion of the sector. Chandler, a suburb of Phoenix, has become a particular hub for this infrastructure.
The theft led to a two-week delay in construction and $50,000 in additional security costs. Chandler police increased patrols in industrial areas and urged construction firms to use alarm systems and lighting.
The case remains under investigation, with no arrests as of July 2024.
The Growing Target
The theft in Chandler fits a broader pattern across the Southwest. Data centers, which house the physical servers that power cloud computing, are often built in remote industrial parks where security may be limited during early construction phases. Copper wire, a key component of grounding systems and network cabling, has become an increasingly valuable target for thieves as global copper prices have risen.
The Chandler Police Department has not released specific details on how the thieves accessed the site or whether the theft was carried out by an organized crew. The record shows that the investigation remains open, with law enforcement still working to identify suspects.
For construction firms operating in the region, the incident has prompted a reassessment of security protocols. The $50,000 in additional security costs included hiring private guards and installing motion-activated lighting and alarm systems, according to police recommendations.
Tax Incentives Drive a Construction Boom
Arizona’s data center sector has grown substantially since the 2013 tax exemption law took effect. The Arizona Commerce Authority reports that the state had 25 data centers in 2023, with 10 more under construction. The incentives, combined with relatively low energy costs and a favorable climate for cooling equipment, have made the state an attractive location for major cloud providers.
Chandler has been a particular beneficiary of this growth. The city is home to several large data center campuses operated by technology companies, though the specific cloud provider involved in the March 2024 theft has not been named.
The theft caused a two-week construction delay, adding to the costs of a project that was already operating under tight timelines. The delay also affected the supply chain for construction materials, as replacement copper wire had to be ordered and delivered.
What to Watch
The Chandler Police Department continues to investigate the theft. No arrests have been made as of July 2024. The incident has raised questions about the security of data center construction sites in the region, particularly as the pace of new builds accelerates.
Construction firms are now being urged to implement stronger security measures, including alarm systems and improved lighting, before thieves can target partially built structures. The record shows that police have increased patrols in industrial areas, but the department has not indicated whether additional thefts have occurred since the March 2024 incident.
The case remains a matter of active investigation, and any developments will be reported as they become available.
