Data Centers in Colorado

Colorado – Strategic High-Altitude Connectivity and Reliability

Colorado: The Gateway to the Mountain West

Colorado is the primary data junction for the Mountain West, offering a stable environment for enterprises requiring low-latency access between both coasts. This market is a top choice for organizations that need to avoid the congestion and high operational costs of coastal hubs while maintaining high-performance networking and carrier density. Choosing this region balances reliable infrastructure with significant tax advantages for large-scale deployments.

Colorado: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Carrier count: over 40. As of December 2025, approximately 45 providers operate across 50 data centers in the state. This diverse ecosystem ensures competitive pricing and resilient pathing for enterprise traffic, making the region a primary interconnection point for the interior United States.

Direct Cloud On-Ramps: Over 2, enabling access to 13 cloud regions as of December 2025. Locally available on-ramps include AWS, Microsoft Azure, and IBM Cloud. These direct connections reduce latency and egress costs compared to relying on public internet transport.

Internet Exchange Points (IXPs): Facilities such as CoreSite DE1 and DE2 act as the primary hubs for regional peering and high-throughput exchange as of December 2025. These points allow service providers and enterprises to keep local traffic local, improving performance for end users in the Denver metro area.

Bare Metal: High-performance hardware is readily available through providers such as Hivelocity and phoenixNAP as of December 2025. This supports rapid scaling for businesses that prefer to avoid the capital commitment of owned infrastructure.

Power Analysis

Average Cost Of Power: Industrial electricity rates range between $0.08/kWh and $0.11/kWh as of December 2025. The local energy mix includes approximately 40% renewables and 60% fossil fuels. Stable pricing helps operators maintain predictable margins for power-intensive deployments.

Power Grid Reliability: The local grid is well-engineered and supported by multiple substations in major data center corridors like the Denver Tech Center as of December 2025. Redundancy is a standard feature for facilities in this market, ensuring high uptime for mission-critical applications.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are concentrated near the Denver Tech Center and the Boulder aerospace corridor as of December 2025. This placement is vital for low-latency applications serving the state’s high-growth sectors in telecommunications, aerospace, and financial services.

Regional Market Reach: Colorado serves as the central data gateway for the entire Mountain West region as of December 2025. Its central geography allows for efficient data distribution to a population of several million across neighboring states with minimal delay.

Tax Advantage For Data Centers: The state provides a significant refund on sales and use taxes for qualifying data center hardware and facility construction as of December 2025. This financial relief helps offset initial capital expenditures for large scale infrastructure projects.

Natural Disaster Risk

Moderate (63.28) as of December 2025. Colorado maintains a manageable risk profile that is handled through standard facility hardening and redundant cooling systems.

The highest-scoring natural hazards for the region include:

• Cold Wave: Sub-zero temperatures requiring winterization of external cooling components.
• Hail: High-frequency events that necessitate reinforced roofing and protective equipment covers.
• Lightning: Atmospheric activity requiring sophisticated grounding and surge protection systems.
• Strong Wind: High-velocity gusts that demand structural integrity and secure debris management.
• Tornado: Low-to-moderate frequency events prioritized in structural engineering.
• Wildfire: Seasonal risks that require air filtration management for data center intake systems.

Other risks, such as landslides and ice storms, are considered minor or regional and are mitigated by specific site selection as of December 2025.