Data Centers in Colorado

Colorado – High-Altitude, Low-Risk Colocation

Colorado is a primary data center market for enterprises requiring a resilient, geographically-centralized U.S. footprint. Its strategic location delivers low-latency connectivity to both coasts while its risk profile avoids the major hazards of coastal hubs. This makes Colorado a top choice for disaster recovery, secondary sites, and national content delivery.

Colorado: At A Glance

Network & Connectivity Ecosystem

Colorado, and specifically the Denver metro area, serves as a critical network interconnection point for the Mountain West region. The market's infrastructure provides reliable, low-latency pathways across the United States.

Carrier Density & Carrier Neutrality With over 45 unique network providers present as of September 2025, Colorado offers a competitive landscape. Businesses can choose from a deep pool of national and regional carriers in numerous carrier-neutral facilities, preventing vendor lock-in and controlling costs.

Direct Cloud On-Ramps There are over 2 direct cloud on-ramps in the state, enabling low-latency access to over 13 cloud availability regions as of September 2025. Major providers with a physical presence include:

• AWS
• Azure
• IBM Cloud

Private network extensions are readily available to connect to other cloud providers.

Internet Exchange Points (IXPs) The market is anchored by IX-Denver, a primary public peering exchange. This IXP allows networks to exchange traffic locally, reducing transit costs and improving performance for users throughout the Rocky Mountain region. Most large-scale peering is also available via private interconnects.

Bare Metal Dedicated server solutions are widely available from providers operating within local data centers. Companies like Hivelocity and phoenixNAP offer bare metal platforms for workloads requiring direct hardware access and consistent performance.

Power Analysis

Colorado's power infrastructure is a significant advantage, combining competitive costs with a strong commitment to renewable energy sources.

Average Cost Of Power Industrial electricity rates typically range from $0.08 to $0.10/kWh, as of September 2025. With a grid mix featuring approximately 40% renewables, these stable rates help businesses manage operational expenses and achieve sustainability goals.

Power Grid Reliability The power grid serving major data center zones like the Denver Tech Center is well-engineered and reliable. Facilities are commonly supported by redundant substations and resilient distribution networks designed to maintain uptime for critical digital infrastructure.

Market Access, Business & Tax Climate

Colorado provides a favorable environment for businesses, supported by a strong tech sector and business-friendly tax policies.

Proximity To Key Business Districts Data centers are concentrated near the Denver Tech Center and other commercial hubs, offering close proximity to major aerospace, telecommunications, financial services, and government entities. This closeness simplifies hybrid IT deployments and ensures low-latency performance for local operations.

Regional Market Reach From its central U.S. location, Colorado can effectively serve applications requiring low-latency connections to users coast-to-coast. It is an ideal hub for reaching markets from Los Angeles to Chicago in under 25 milliseconds.

Tax Advantage For Data Centers Colorado offers specific tax incentives that directly benefit data center operators and tenants. The state provides a sales and use tax rebate on qualifying data center equipment, significantly lowering the capital expenditure for new builds or technology refreshes.

Natural Disaster Risk

Colorado has a moderate natural disaster risk profile, with a FEMA National Risk Index score of 63.28 as of September 2025. Its inland location protects it from the most disruptive events like hurricanes and major earthquakes that impact coastal markets.

Primary risks are manageable and include:

• Wildfire
• Hail
• Drought
• Strong Wind
• Winter Weather

While these events require planning, they represent a significantly lower threat to data center uptime compared to the systemic risks in other primary U.S. markets.