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A Simple Guide To Colocation In Las Vegas

A Simple Guide To Colocation In Las Vegas

Colocation has become popular as a cost-effective way for businesses to gain flexible access to data center infrastructure in key locations. This article will look at colocation in Las Vegas. It will give an overview of Las Vegas’ business landscape. It will then look at the benefits of colocation in Las Vegas and the factors influencing its cost.

An overview of the business landscape in Las Vegas

Las Vegas has long been famous for its gaming industry, centered on its famous Strip (although this is technically outside the city).

Entertainment and leisure were always provided alongside the gaming activities. These have now become major industry sectors in Las Vegas in their own right. Las Vegas is now increasingly branching out into sports and has just become a part of the Formula 1 motor racing circuit.

The city has also seen significant growth in the healthcare, manufacturing sectors, and technology sectors. In particular, Las Vegas has developed a supportive ecosystem for innovation including providing hubs and collaborative spaces. Its investment is being rewarded by the emergence of innovative startups and technology-driven enterprises.

Las Vegas’ process of economic diversification is still very much a work in progress. It’s probably safe to say that the next few years will see the city push to develop further industry sectors.

Benefits of colocation in Las Vegas

Here is a quick overview of the three key benefits of colocation in Las Vegas.

Cost-effectiveness: Using colocation allows companies in Las Vegas to minimize capital expenditures by sharing infrastructure costs.

Scalability: Colocation provides the flexibility to scale IT infrastructure seamlessly, ensuring businesses can adapt to changing needs. This is particularly helpful in very dynamic locations such as Las Vegas.

Access to advanced technologies: Colocation services in Las Vegas often incorporate cutting-edge technologies, allowing businesses to benefit from advanced infrastructure without the need for hefty capital investment.

Factors influencing the cost of colocation in Las Vegas

Here are the five key factors influencing the cost of colocation in Las Vegas.

Location and space requirements

Location is a major consideration everywhere. It certainly matters in Las Vegas. Using a colocation facility near your users will minimize the distance your data has to travel. This makes for the fastest and most secure connections.

On the other hand, if your clients are located in prime locations in Las Vegas, nearby colocation facilities may be relatively expensive. If you could accept being at some distance from them, you could potentially reduce your costs significantly.

How much space you need in your colocation facility will also heavily influence the price. This can, however, be offset by optimizing your use of space.

Tier rating

A colocation facility’s tier rating is a guide to its reliability. It’s based on uptime guarantees, fault tolerance, and cost. There are now five tiers of data centers with one being the lowest and five being the highest. Colocation vendors who achieve higher tiers will generally charge higher prices than those in lower tiers (in the same location).


The three key infrastructure components for colocation data centers are network connectivity, power, and cooling. Network connectivity is often strongly linked to location. Essentially, colocation facilities situated in proximity to key network hubs can deliver the best (i.e. lowest-latency) connections.

Power needs to be both sufficient and reliable. Most of the time, Las Vegas has no problem with either. The fact that it is one of the sunniest cities in the world (and certainly the USA) means that it can generate a lot of solar power. Even so, energy efficiency is a consideration.

Choosing a colocation vendor that prioritizes energy efficiency can significantly reduce your running costs. This is particularly true for colocation in Las Vegas as the city is in the middle of the Mojave desert. That means it can get extremely hot in summer so effective cooling is vital.

Security and compliance

As with the public cloud, with colocation, security is a joint responsibility but most of that responsibility falls on the vendor. They have to secure the facility from both human and environmental threats. The customer just has to secure their own equipment. Again, the higher the level of security the vendor implements, the higher the cost is likely to be.

Likewise, the more compliance programs a vendor can support, the more they are likely to charge. These days, most colocation vendors in Las Vegas are likely to support mainstream compliance programs such as PCI/DSS, HIPAA, and GDPR. Support for more niche programs (e.g. FedRAMP) may be more restricted and hence cost more.


The more support a colocation provider delivers, the more they will charge. Even so, they may still deliver the best overall value.

Colocation in Las Vegas

If you are looking for colocation services in Las Vegas, DataBank is an excellent choice. DataBank has four state-of-the-art data centers in the Las Vegas area, which combine to offer 36,800 square feet of raised floor space, and 3.6MW critical IT load. Learn more about DataBank’s Las Vegas data centers.



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