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A Simple Guide To Colocation In Denver

A Simple Guide To Colocation In Denver

Colocation essentially takes the “as-a-service” business model and applies it to the provision of data center infrastructure. It has been enthusiastically adopted by businesses of all sizes and all across the world. Overall, the pros and cons of colocation are the same in any location. There are, however, some minor variations between different areas. With that in mind, here is a quick guide to colocation in Denver.

An overview of the Denver business landscape

Denver’s economy is a well-balanced combination of traditional sectors and emerging industries. Likewise, it is home to businesses of all sizes from tiny start-ups to major corporations with numerous established SMBs.

The energy sector has long been a cornerstone of Denver’s economy. Traditionally, this meant oil and gas. These sectors are still very active but Denver has been moving towards more sustainable energy, particularly wind-based energy. Other major sectors include technology, healthcare, aerospace, and tourism.

Denver’s technology sector is strongest in software development, IT services, and cybersecurity. Its support for startups has led to it becoming a hub for innovation. The benefits of this feed through to other areas of its economy.

Factors influencing the cost of colocation in Denver

The factors affecting the cost of colocation in Denver are much the same as the factors affecting the cost of colocation in other cities. Here is a quick overview of them, along with Denver-specific considerations.


Obviously, a major factor affecting the cost of colocation anywhere is the cost of real estate. In Denver, as in most places, urban locations tend to be more expensive than suburban ones.

Part of the reason for this is that colocation facilities are more likely to be situated near major network hubs. This means they can charge a premium for their enhanced connectivity. On the flip side, however, paying for a strategic location can reduce the need for extensive network infrastructure. This can reduce long-term operating costs.


Colocation facilities are classified into tiers based on redundancy and reliability. Higher-tier facilities generally incur greater costs than lower-tier ones in their local area due to their more robust infrastructure.

Facilities and services

In terms of facilities, the main components of data center infrastructure are power, cooling, and connectivity.

Denver’s focus on sustainability may influence colocation providers to use renewable energy sources. Businesses should assess how these choices impact costs and whether they align with their sustainability goals.

Denver also encourages businesses in general to pay attention to their power usage efficiency (PUE). Colocation facilities with efficient PUE scores contribute to lower operational costs.

The benefits of colocation in Denver

Here is an overview of the four main benefits of colocation in Denver.

Strategic location

Modern businesses often find it advantageous to host at least some of their services near to their user base. Denver is not only a major city in its own right but also nearly equidistant from several other cities including Chicago, St. Louis, Los Angeles, and San Francisco.


Denver’s dynamic business environment demands scalability, and colocation services provide the flexibility to scale IT infrastructure based on evolving business needs. This is crucial for businesses experiencing growth or fluctuations in demand.

Access to on-site support

Colocation providers in Denver often offer on-site technical support, providing businesses with access to specialized expertise. This support includes troubleshooting, maintenance, and assistance in optimizing IT infrastructure.


Colocation services in Denver offer businesses a cost-effective solution by eliminating the need for investing in and maintaining private data centers. This is particularly advantageous in Denver’s competitive business climate, allowing companies to allocate resources strategically.

The challenges of colocation in Denver

Here is an overview of the four main challenges of colocation in Denver.

Real estate costs

Denver’s prime location means that it is an ideal hub for businesses with regional operations throughout the West, even on the coast. The city can even be a useful base for companies operating throughout the USA due to its proximity to major transportation hubs and network connectivity. Its real-estate market therefore tends to be very strong. This is reflected in the costs of colocation in Denver.

Customization challenges

Tailoring colocation services to specific business needs may pose challenges, especially for businesses with unique or specialized requirements. Finding providers capable of accommodating such customization needs may require thorough research and collaboration.

Disaster recovery challenges: Denver poses the usual challenges of an urban or suburban environment along with some climate-related challenges. The city regularly experiences heavy snow and hailstorms. It is also prone to strong winds and occasional tornadoes.

Pricing structure can be complex

Creating the right colocation contract for your business can be complex. With that said, managing the costs of colocation in Denver or anywhere else is likely to be a lot simpler than managing the costs of the public cloud. Also, the fact that Denver has such a robust and varied economy means that there may be opportunities to collaborate with other businesses to reduce costs.

Colocation Denver

If you are looking for colocation services in Denver, DataBank is an excellent choice. DataBank has five state-of-the-art data centers in the Denver area, which combine to offer 145,530 square feet of raised floor space, and 24.5MW critical IT load. Learn more about DataBank’s Denver data centers.


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