Data Centers in Denver

Denver – National Reach from the Mountain West

Executive Summary

Denver is a premier market for enterprises requiring a central US footprint to serve both coasts with minimal latency. Its dense connectivity and competitive environment provide a reliable, cost-effective alternative to coastal data center hubs, ensuring high-performance application delivery nationwide.

Denver: At A Glance

Network & Connectivity Ecosystem

Denver's location in the geographic center of the country makes it a critical interconnection point for national networks. The market has a mature and competitive ecosystem with 39 data centers from over 44 providers as of September 2025.

Carrier Density & Carrier Neutrality The market features excellent carrier diversity, with over 40 unique network providers available as of September 2025. This density fosters a competitive environment, driving down transit costs and providing extensive options for redundancy and private network interconnects.

Direct Cloud On-Ramps With two dedicated cloud on-ramps, Denver provides low-latency private access to 13 cloud availability regions. Direct connectivity is available for major providers including AWS, Microsoft Azure, and IBM Cloud, enabling secure and performant hybrid cloud architectures.

Internet Exchange Points (IXPs) The primary public peering point is IX-Denver, which facilitates efficient local traffic exchange between carriers, content providers, and enterprises. This local peering reduces latency and lowers transit costs for traffic within the Rocky Mountain region.

Bare Metal Bare metal server options are readily available from multiple providers in the Denver market. Companies like phoenixNAP and Hivelocity offer dedicated server solutions for workloads requiring maximum performance and security without a virtualization layer.

Power Analysis

Denver provides a favorable balance of power cost, reliability, and an increasing commitment to renewable energy sources.

Average Cost Of Power Industrial power costs in the Denver area typically range from $0.08 to $0.11 per kWh as of September 2025. This competitive pricing helps manage operational expenditures for high-density compute and large-scale deployments.

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

Market Access, Business & Tax Climate

Denver's business-friendly environment and strategic location provide significant advantages for digital infrastructure deployments.

Proximity To Key Business Districts Data centers are clustered near the Denver Tech Center (DTC) and downtown, providing low-latency connectivity to the region's concentration of telecommunications, financial services, and corporate enterprise headquarters.

Regional Market Reach From its central location, Denver effectively serves the entire Mountain West region, from Arizona to Montana. It also functions as a vital midpoint for national content delivery networks looking to improve performance for users across the United States.

Tax Advantage For Data Centers Colorado provides a significant financial advantage through a state sales and use tax rebate specifically for data center equipment and operations. This direct incentive lowers the total cost of ownership for new deployments and hardware refreshes.

Natural Disaster Risk

The Denver area has a Moderate natural disaster risk profile, with a National Risk Index score of 63.28 as of September 2025. The market is insulated from hurricanes, earthquakes, and coastal flooding, making it a stable location for disaster recovery and primary production sites. Key operational risks stem from severe weather events including wildfire, tornados, hail, and significant winter weather like ice storms.