The growth in data and data use (big data) has led to the growth of data centers. This growth has, however, not been evenly spread. Denver has seen particularly strong growth in data centers. Here is an explanation of why.
There are numerous factors contributing to data center growth. Here are 7 of the main ones.
The exponential growth of cloud computing, artificial intelligence (AI), and data-intensive applications drives global data center expansion. Businesses increasingly rely on cloud platforms and digital infrastructure, accelerating the need for data storage and processing facilities.
The rapid adoption of artificial intelligence, machine learning, and high-performance computing requires large-scale data processing capabilities. Data centers are expanding to support these power-hungry workloads. Denver’s access to renewable energy and fiber infrastructure makes it a strong candidate for AI-driven data center growth.
The rise of edge computing, which requires data to be processed closer to end-users for faster performance, fuels data center growth. In Denver, its central location supports reduced latency between major U.S. cities, making it ideal for edge deployments.
The rollout of 5G technology increases data traffic and the need for local data processing. Denver’s strong fiber-optic infrastructure supports this demand, enhancing its appeal for new data centers.
Organizations prioritize secure, resilient data centers for disaster recovery and business continuity. Denver’s low risk of natural disasters, such as earthquakes and hurricanes, makes it a desirable location for backup and primary data facilities.
As data centers face pressure to reduce their carbon footprint, regions with access to renewable energy are increasingly attractive. Denver benefits from abundant wind and solar energy, aligning with sustainability goals.
Pro-business policies and tax incentives encourage data center investment. Colorado offers financial incentives that reduce operational costs, supporting Denver’s emergence as a data hub.
Data center growth in Denver is particularly strong. Here are 7 reasons why.
Denver is centrally located in the U.S., making it an ideal hub for data traffic between coasts. Additionally, the city is relatively free from natural disasters like hurricanes, earthquakes, and floods, ensuring greater uptime and operational stability.
The city’s naturally cool climate reduces the need for excessive artificial cooling, leading to lower energy costs for data centers. This is a significant advantage in an industry where cooling is a major operational expense.
Denver has a well-developed fiber-optic network with major internet backbone providers present in the region. This ensures high-speed connectivity, low latency, and strong network redundancy.
Colorado offers tax incentives and other benefits for tech and data center investments, attracting businesses looking for cost-effective expansion opportunities.
With access to wind and solar power, Denver aligns with the growing industry trend of sustainable data center operations, appealing to companies prioritizing green energy.
Denver is home to a growing number of cloud providers, enterprise IT firms, and startups. This creates a strong ecosystem where data centers can serve businesses with lower latency, improved interconnectivity, and direct cloud on-ramps, making it an attractive location for colocation and hyperscale facilities.
Denver’s expanding tech ecosystem and universities provide a skilled workforce, making it easier for data centers to find qualified employees.
Here are 7 predictions for the future of Denver data centers.
Major cloud providers and enterprises will continue expanding their presence in Denver, taking advantage of its central location, strong fiber infrastructure, and favorable climate.
As AI and machine learning demand more processing power, Denver data centers will integrate specialized infrastructure, including GPUs and liquid cooling systems, to support these workloads.
With the rise of 5G and IoT, Denver’s strategic position will drive more edge data center deployments to reduce latency for users across the central U.S.
Expect further investments in green energy, with data centers increasingly relying on wind and solar power to meet corporate sustainability goals and regulatory requirements.
Denver’s low disaster risk will attract more companies seeking backup and redundant data center solutions for resilience planning.
As cybersecurity threats grow, Denver data centers will implement stricter security protocols, including zero-trust architectures and AI-driven threat detection.
Increased demand will drive new data center construction, boosting local real estate markets and infrastructure development in the region.
Learn more about DataBank’s four Denver metro data centers, including key mechanical information, interesting facts about the region, and colocation options and benefits.
Gain an understanding of how to assess the security of Denver data centers. Learn why effective data center security is crucial to your organization’s safety and success. Find out what five, core security features should be present in Denver data centers. Look at how DataBank protects your data from a diverse range of threats.
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.
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