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Data Centers in Colorado Springs

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Colorado Springs – Secure High-Altitude Colocation

Executive Summary

Colorado Springs is a strategic secondary data center market ideal for organizations prioritizing disaster recovery, security, and geographic redundancy. Its high altitude, low-risk profile, and proximity to aerospace and defense industries make it a strong choice for workloads that demand stability and resilience. This market provides a reliable alternative to primary hubs like Denver for serving the Rocky Mountain region.

Colorado Springs: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBA well-connected secondary market with good regional access.
Direct Cloud On-Ramps0 – as of September 2025The nearest major cloud hub is Denver; private connectivity options are available.
Power Cost$0.07 – $0.09/kWh (est.)In line with regional averages, with a grid mix of ~40% renewables.
Disaster RiskModerate (63.28) – as of September 2025Key risks are primarily weather-related; avoids major coastal and seismic hazards.
Tax IncentivesYesIncludes a state sales and use tax rebate specifically for data centers.
Sales Tax2.90% (State) – as of Midyear 2025Colorado state sales tax; local taxes may also apply.

Network & Connectivity Ecosystem

Colorado Springs offers a solid connectivity framework, anchored by its proximity to the primary network hub of Denver. While not a top-tier interconnection market, it has the necessary infrastructure for most enterprise and disaster recovery requirements.

Carrier Density & Carrier Neutrality The market is served by over 5 unique network carriers as of September 2025. Multiple carrier-neutral facilities provide competitive options for creating resilient network architectures.

Direct Cloud On-Ramps There are no direct public cloud on-ramps within Colorado Springs as of September 2025. Businesses connect to all major cloud providers, including AWS, Google Cloud (GCP), and Microsoft Azure, via dedicated circuits to facilities in nearby Denver.

Internet Exchange Points (IXPs) Public peering is limited within the city. Most network peering occurs privately between carriers or is routed through major Internet Exchanges in Denver.

Bare Metal Bare metal server options are available from providers operating in the region. These services allow for dedicated, high-performance computing without the overhead of virtualization, with providers like Hivelocity offering solutions.

Power Analysis

Average Cost Of Power Industrial power costs in the Colorado Springs area are competitive, estimated between $0.07 and $0.09/kWh as of September 2025. Predictable energy pricing helps organizations manage operational expenses effectively. The regional power mix includes approximately 40% renewables.

Power Grid Reliability The power grid supporting the area's data centers is well-engineered and stable. Key facilities are often supplied by redundant substations, ensuring high levels of uptime for mission-critical operations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers in Colorado Springs provide low-latency access to the city's significant aerospace, defense, and technology sectors. Proximity to major military installations, including Peterson Space Force Base and the US Air Force Academy, makes it a key location for government contractors.

Regional Market Reach The market effectively serves the entire Colorado Front Range Urban Corridor, from Pueblo in the south to Fort Collins in the north. It offers a valuable disaster recovery location for businesses operating in Denver, which is approximately 70 miles away.

Tax Advantage For Data Centers Colorado provides specific tax incentives that lower the cost of data center operations. The state offers a sales and use tax rebate on equipment purchases for qualifying data centers, directly reducing capital expenditures.

Natural Disaster Risk

Colorado Springs has a moderate natural disaster risk profile, with a FEMA National Risk Index score of 63.28 out of 100 as of September 2025. Its inland, high-altitude location protects it from hurricanes, earthquakes, and coastal flooding.

The primary environmental risks for consideration are:

  • Wildfire
  • Hail
  • Tornado
  • Drought
  • Winter Weather & Ice Storms
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