Data Centers in Colorado Springs

Colorado Springs – High-Altitude Disaster Recovery

Executive Summary

Colorado Springs is an excellent market for organizations requiring a secure, secondary disaster recovery site. Its location away from primary coastal and seismic risk zones makes it a strategic choice for government, aerospace, and enterprise customers. Deploying in Colorado Springs ensures operational continuity for critical workloads in a cost-effective, lower-risk environment.

Colorado Springs: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality The market is served by over 8 carriers as of September 2025, providing solid network diversity. Customers have access to multiple carrier-neutral facilities, ensuring competitive pricing and redundant connectivity options from national and regional providers.

Direct Cloud On-Ramps There are no direct public cloud on-ramps within Colorado Springs data centers as of September 2025. The primary access point for dedicated cloud interconnection is Denver, where all major cloud providers have a presence. Secure, high-speed connectivity to these hubs is achieved through private network links and wavelength services offered by local carriers.

Internet Exchange Points (IXPs) Public peering is limited within the city. Most network peering is conducted privately between carriers or routed through major Internet Exchanges in Denver, which serves as the primary IXP hub for the Rocky Mountain region.

Bare Metal Bare metal server options are available, offering dedicated compute for performance-sensitive applications. Providers like phoenixNAP and Hivelocity can service deployments in the broader region, enabling direct access to physical hardware without virtualization overhead.

Power Analysis

Average Cost Of Power Industrial power costs in the Colorado Springs area range from approximately $0.08 to $0.11 per kWh, as of September 2025. This competitive pricing provides cost stability for high-density deployments. The regional grid is supplied by a mix of renewable sources (around 40%) and fossil fuels (around 60%).

Power Grid Reliability The power grid is well-engineered to support the significant military and technology presence in the area. Data centers benefit from reliable utility service, often with feeds from multiple substations to enhance uptime and fault tolerance for critical infrastructure.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers in Colorado Springs provide low-latency connectivity to a high concentration of aerospace, defense, and federal government operations. Proximity to installations like Peterson Space Force Base, Schriever Space Force Base, and the North American Aerospace Defense Command (NORAD) is a key advantage for government contractors.

Regional Market Reach The market effectively serves Southern Colorado and acts as a primary disaster recovery location for the Denver metropolitan area. Its geographic position makes it a logical and secure secondary site for any business operating along the Front Range.

Tax Advantage For Data Centers Colorado provides meaningful tax incentives that lower the cost of building and operating a data center. A state-level sales and use tax rebate on data center equipment directly reduces the capital expenditure for new builds or technology refreshes, making large-scale investments more financially viable.

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. The area is safely inland, eliminating threats from hurricanes and tsunamis. The primary environmental risks for data center operations are wildfire, drought, hail, strong wind, tornados, and severe winter weather. Site selection and facility engineering are critical to mitigate these regional hazards.