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Data Centers in Colorado Springs

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Colorado Springs – Secure, High-Altitude IT Infrastructure

Colorado Springs is a strategic market for companies requiring resilient infrastructure away from primary coastal hubs. Its high altitude, lower disaster risk profile, and favorable tax climate make it ideal for production workloads, disaster recovery, and government or defense-related IT services that demand high security and uptime.

Colorado Springs: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBStrong regional connectivity with good long-haul fiber access.
Direct Cloud On-Ramps0 – as of September 2025Nearest on-ramps are in Denver; private network extensions are readily available.
Power Cost$0.08–$0.10/kWhSourced from a mix of ~40% renewables and ~60% fossil fuels.
Disaster RiskModerate (63.28 Score)Significantly lower risk than coastal markets for most major natural disasters.
Tax IncentivesYesIncludes a state sales and use tax rebate specifically for data centers.
Sales Tax2.90% (State) – as of Midyear 2025Favorable state-level tax environment for equipment and software purchases.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: The Colorado Springs market provides access to over 8 unique network providers as of September 2025. Carrier-neutral facilities offer diverse connectivity options, ensuring competitive pricing and high-quality network performance.

Direct Cloud On-Ramps: There are no public cloud on-ramps located directly within Colorado Springs. The primary hub for direct cloud access is Denver, where all major providers maintain a presence. Secure, low-latency connections to these hubs are typically established via dedicated wavelength or private network interconnects.

Internet Exchange Points (IXPs): Most network peering in Colorado Springs is handled privately between carriers within local data centers. For public peering, the primary exchange is IX-Denver, which serves as the main peering point for the entire Rocky Mountain region.

Bare Metal: Bare metal server options are available from multiple providers in the region, offering dedicated compute for performance-sensitive applications. Providers such as phoenixNAP and Hivelocity can service deployments in the greater Mountain West area.

Power Analysis

Average Cost Of Power: Industrial electricity rates in Colorado Springs typically range from $0.08 to $0.10 per kWh as of September 2025. These competitive power costs, combined with a focus on energy efficiency, can lead to significant operational savings over time.

Power Grid Reliability: The power grid serving the primary data center zones in Colorado Springs is well-engineered and reliable. Facilities benefit from redundant power feeds and substation diversity, which are critical for maintaining continuous operations and supporting uptime guarantees.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Colorado Springs are strategically located to support the area's significant aerospace, defense, and technology sectors. This proximity allows for low-latency connections to federal and military installations, including Peterson Space Force Base and the North American Aerospace Defense Command (NORAD).

Regional Market Reach: From its central location, Colorado Springs effectively serves as a digital hub for the Mountain West region of the United States. It provides an excellent platform for reaching markets from Denver to Albuquerque with minimal latency.

Tax Advantage For Data Centers: Colorado offers a compelling sales and use tax rebate for data center equipment, significantly reducing the capital expenditure required for new builds or hardware refreshes. This state-level incentive makes the total cost of ownership more attractive compared to other states.

Natural Disaster Risk

Colorado Springs has a moderate natural disaster risk profile, with a FEMA National Risk Index score of 63.28 as of September 2025. This rating is relatively low compared to many other US metropolitan areas, particularly those on the coasts. The primary environmental risks to consider are wildfire, hail, drought, and strong winds. The region has a very low risk of earthquakes and is not exposed to hurricanes or coastal flooding.

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