Data Centers in Denver

Denver – Central Hub for Resilient US Reach

Executive Summary

Denver is the primary interconnection hub for the Mountain West, serving as a critical midpoint for low-latency national network routes. The market is purpose-built for businesses requiring a geographically stable alternative to coastal hubs for disaster recovery and content delivery. Its central location ensures consistent application performance for users across the entire United States.

Denver: At A Glance

Network & Connectivity Ecosystem

Denver’s connectivity is its defining feature, offering a mature and carrier-rich environment that bypasses the congestion of traditional coastal hubs.

Carrier Density & Carrier Neutrality The market provides access to 44 network providers, as of September 2025. Most colocation facilities operate on a carrier-neutral basis, giving customers extensive choice for creating redundant, high-performance network architectures.

Direct Cloud On-Ramps With over 2 dedicated on-ramps enabling private access to 13 cloud regions, Denver offers secure, low-latency connections to major platforms. Direct connectivity is available for AWS, Microsoft Azure, and IBM Cloud, as of September 2025.

Internet Exchange Points (IXPs) The CoreSite Any2Exchange for Peering (IX-Denver) is the primary public IXP in the region. It facilitates low-cost traffic exchange between networks, reducing latency and improving performance for local and regional users.

Bare Metal Bare metal server options are readily available from multiple providers in the Denver market. Companies like phoenixNAP offer dedicated server solutions for workloads requiring maximum performance and control.

Power Analysis

Denver's power infrastructure is reliable and benefits from a diverse generation mix and competitive pricing.

Average Cost Of Power Industrial power costs in the Denver area range from $0.08 – $0.10/kWh, as of September 2025. This competitive pricing structure helps manage operational expenditures for high-density deployments. The grid is powered by approximately 40% renewables and 60% fossil fuels.

Power Grid Reliability The power grid serving Denver's primary data center corridors is well-engineered and stable. Major colocation facilities are supported by redundant substations and utility feeds, ensuring high levels of uptime for mission-critical operations.

Market Access, Business & Tax Climate

Denver provides a favorable business environment, combining strategic market access with valuable financial incentives.

Proximity To Key Business Districts Data centers are concentrated near the Denver Tech Center (DTC) and in Englewood. This places them close to the region's major technology, telecommunications, financial services, and aerospace industries.

Regional Market Reach As the largest metropolitan area in the Mountain West, Denver is the ideal location for serving Colorado, Utah, Wyoming, and surrounding states. Its central position also makes it a strategic asset for national content delivery networks.

Tax Advantage For Data Centers Colorado offers a significant sales and use tax rebate on data center equipment purchases. This incentive directly lowers the capital investment required for building out new infrastructure or refreshing existing hardware.

Natural Disaster Risk

Denver 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 location protects it from hurricanes, tsunamis, and major coastal flooding.

The primary environmental risks are atmospheric and geological, including:

• Wildfire
• Hail
• Tornado
• Strong Wind
• Winter Weather & Ice Storms

While these events require standard operational planning, the market avoids the systemic threats common to major coastal data center hubs.