The location of a data center is often key to ensuring that it consistently operates in a reliable, efficient and cost-effective manner. With that in mind, here is a straightforward guide to why Denver is an ideal location for data centers.
One of the main attractions of Denver is its strategic location. Here is an overview of five of the main benefits the city offers.
Unlike coastal cities, which are vulnerable to hurricanes, earthquakes, and flooding, Denver is in a relatively geologically stable area. The city experiences minimal seismic activity, no risk of hurricanes, and only occasional, less severe weather events such as snowstorms.
Denver’s position near the geographic center of the United States allows it to serve as a crucial data transit hub. Data centers in Denver are ideally positioned to deliver low-latency connections between major markets on both the East and West Coasts.
Denver is home to multiple fiber-optic networks, making it a key interconnection point for major internet backbones. This robust infrastructure ensures fast, reliable, and redundant connectivity, reducing the risk of network congestion or outages.
The city’s naturally cool temperatures and low humidity help reduce the need for excessive cooling systems, cutting operational energy costs. This climate supports more efficient heat dissipation, extending the lifespan of critical data center equipment.
Colorado offers competitive electricity rates compared to other data center hubs, and its commitment to renewable energy sources such as wind and solar provides sustainable power options. This helps data centers reduce operational costs while improving environmental sustainability.
Denver has some of the best infrastructure in the USA. These are just 7 of its main infrastructure advantages.
Denver is a major interconnection point for national and international internet traffic. Multiple Tier 1 providers operate within the city, ensuring high-speed, redundant connectivity. This extensive fiber infrastructure minimizes latency and enhances network reliability.
The city has a stable and well-developed power grid, reducing the risk of outages. Colorado also offers competitive electricity rates and increasing access to renewable energy sources, such as wind and solar, allowing data centers to operate more sustainably.
While Denver has a semi-arid climate, its efficient water and cooling systems help support data center operations. The city’s naturally cool temperatures reduce the strain on artificial cooling, improving energy efficiency and lowering costs.
Denver hosts multiple high-tier data centers that provide advanced redundancy, security, and disaster recovery capabilities. These facilities meet stringent uptime requirements, making them ideal for mission-critical applications.
Denver’s infrastructure includes a major international airport, extensive rail networks, and key interstate highways. This facilitates easy access to data centers for both local personnel/vendors and those from further afield.
Here are just 7 of the key business benefits of choosing Denver.
Compared to coastal tech hubs like San Francisco or New York, Denver offers lower real estate costs, competitive electricity rates, and reduced cooling expenses due to its naturally cool climate. These factors contribute to overall lower operational costs for data centers.
Colorado provides tax incentives and regulatory benefits to encourage data center investments. Programs such as sales tax exemptions on IT equipment and renewable energy incentives help reduce costs for businesses.
Denver has a thriving technology sector, with a strong presence in cloud computing, cybersecurity, and software development. This ecosystem fosters innovation and provides data centers with a steady demand for services.
The city is home to top universities and technical schools that produce a highly skilled workforce in IT, network engineering, and data management. The growing talent pool makes it easier for data centers to recruit and retain top professionals.
Due to its central location, Denver provides low-latency connections between East and West Coast markets, making it an ideal hub for cloud providers, streaming services, and enterprises with nationwide operations.
With low risk of natural disasters and high-tier data center infrastructure, Denver is a strategic location for disaster recovery sites, ensuring business continuity during outages elsewhere.
Unlike densely populated metro areas with limited space, Denver offers ample room for data center expansion. This means that growing businesses can expand their data center footprint at a reasonable cost.
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.
Learn more about DataBank’s four Denver metro data centers, including key mechanical information, interesting facts about the region, and colocation options and benefits.
Your choice of Denver data center needs to align with your broader goals and objectives of the organization. The clearer you can be about your needs and wants, the easier it will be for you to judge if a data center is a good fit for them.
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