Data Centers in Colorado

Colorado – High-Altitude, Low-Latency Hub

Colorado offers a compelling combination of a central US location, competitive operating costs, and a low natural disaster risk profile. This market is ideal for enterprises requiring low-latency connectivity to both East and West Coast markets, as well as for disaster recovery sites serving coastal hubs. The state's significant investment in renewable energy and a favorable tax climate make it a strategic choice for modern, efficient digital infrastructure.

Colorado: At A Glance

Network & Connectivity Ecosystem

Colorado, particularly the Denver metro area, is a primary network interconnection point for the Mountain West. Its central location makes it a natural hub for long-haul fiber routes, providing reliable, low-latency paths across the United States.

Carrier Density & Carrier Neutrality: The market features excellent connectivity from over 45 unique network providers, as of September 2025. A healthy ecosystem of carrier-neutral data centers ensures competitive pricing and diverse routing options.

Direct Cloud On-Ramps: With over 2 dedicated cloud on-ramps, businesses have direct, private access to major cloud platforms, including AWS, Azure, and IBM Cloud. This enables secure, high-performance hybrid cloud deployments connecting to 13 cloud regions.

Internet Exchange Points (IXPs): The region is served by IX-Denver, a key peering point that reduces latency and lowers transit costs for traffic within the Mountain West. Most large-scale peering is also available via private network interconnects.

Bare Metal: On-demand bare metal server options are readily available from providers in the Denver area. Major providers like phoenixNAP and Hivelocity offer dedicated server solutions for compute-intensive workloads.

Power Analysis

Colorado's power infrastructure is both reliable and increasingly green, providing a stable foundation for high-density computing.

Average Cost Of Power: Industrial power rates typically range from $0.08 to $0.11/kWh, as of September 2025. This competitive pricing, combined with a grid sourcing approximately 40% of its energy from renewables, helps manage total cost of ownership.

Power Grid Reliability: The power grid serving major data center zones in cities like Denver and Colorado Springs is well-engineered and reliable. Facilities are often supported by redundant substations, minimizing the risk of downtime.

Market Access, Business & Tax Climate

Colorado’s business environment is supported by a strong tech talent pool, favorable tax policies, and excellent access to regional and national markets.

Proximity To Key Business Districts: Data centers are located near major commercial hubs like the Denver Tech Center, supporting industries in telecommunications, aerospace, finance, and government. This proximity allows for ultra-low latency connections to key business operations.

Regional Market Reach: From its central location, Colorado serves as an ideal hub for reaching the entire Mountain West region, from Arizona to Montana. It also provides an excellent midpoint for national content delivery and application hosting strategies.

Tax Advantage For Data Centers: Colorado provides a direct sales and use tax refund on data center equipment, which significantly lowers upfront capital expenses. Additional state incentives for energy efficiency and renewable energy use further reduce long-term operating costs.

Natural Disaster Risk

Colorado has a moderate natural disaster risk profile, making it a secure location compared to coastal and central US markets prone to more severe events.

The state holds a FEMA National Risk Index score of 63.28, as of September 2025. The primary environmental risks are related to weather phenomena. Key risks for infrastructure consideration include hail, wildfire, strong wind, winter weather, and drought. The state has minimal exposure to catastrophic events like earthquakes or hurricanes.