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Colorado Springs – Mission-Critical Security and Geographic Stability

Executive Summary

Colorado Springs serves as a premier destination for organizations requiring high-security colocation and geographic stability. Its proximity to major aerospace and defense sectors makes it a logical hub for firms prioritizing uptime and data integrity in high-stakes environments.

Colorado Springs: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBSolid regional connectivity with diverse fiber paths to Denver.
Direct Cloud On-Ramps0 – as of September 2025Nearest major cloud on-ramp hub is located in Denver.
Power Cost$0.09 – $0.11/kWh, as of September 2025Competitive industrial rates with a growing renewable energy mix.
Disaster RiskModerate (63.28), as of September 2025Risk is managed through resilient facility engineering.
Tax IncentivesYesState sales tax rebates available for data center equipment.
Sales Tax2.90%, as of September 2025Low state rate reduces total cost of ownership.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Carrier count: over 5. The market features approximately 8 providers as of September 2025, ensuring healthy competition and diverse routing options for enterprise users. Neutrality is common across the major facilities, allowing for flexible cross-connect strategies.

Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions as of September 2025. Access to AWS, Google Cloud (GCP), and Microsoft Azure is typically achieved via private extension or high-capacity transport to the Denver hub. These private network interconnects provide low-latency access to major cloud regions while maintaining a physical footprint in a secure secondary location.

Internet Exchange Points (IXPs): Public peering is primarily facilitated through major exchanges in nearby Denver as of September 2025. Most local facilities rely on private peering and direct fiber links to national backbone providers to manage traffic efficiently.

Bare Metal: High-performance bare metal services are available for rapid deployment through providers like Hivelocity as of September 2025. These options allow for hardware-level control without the capital expense of owning physical gear.

Power Analysis

Average Cost Of Power: Industrial electricity rates typically range from $0.09 to $0.11/kWh as of September 2025. The local power mix consists of approximately 40% renewables and 60% fossil fuels, providing significant operational savings compared to national averages.

Power Grid Reliability: The grid is reliable and purpose-built to support the high-density requirements of regional aerospace and government installations as of September 2025. Facilities typically benefit from redundant feeds and multi-substation support to ensure consistent delivery.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers here are located near major military, aerospace, and defense clusters. This proximity is vital for contractors and service providers who need to maintain low-latency connections to government-affiliated networks.

Regional Market Reach: This location serves the entire southern Front Range of Colorado and provides a stable jumping-off point for services reaching across the Great Plains and the Mountain West.

Tax Advantage For Data Centers: Colorado provides a state sales and use tax rebate for equipment used within qualifying data center businesses. This incentive helps operators and customers lower the costs of server refreshes and initial hardware deployments.

Natural Disaster Risk

The FEMA NRI Score for Colorado Springs is 63.28, placing it in the Moderate category as of September 2025. The risk profile is manageable, with facility designs typically accounting for specific regional hazards.

The primary natural risks include:

  • Hail
  • Wildfire
  • Strong Winds
  • Lightning
  • Winter Weather
  • Tornado

Because of its inland location, there is no material risk from coastal flooding or tsunamis. Modern facilities in the area use reinforced structures and advanced cooling systems to mitigate these environmental challenges.

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