Colorado’s Compelling Case for Colocation

Joe Velderman

The state of Colorado probably isn’t the first state that comes to mind when considering a Colocation or Disaster Recovery location. Traditionally, big datacenter spaces have popped up in large corporate metroplex areas like New York, Chicago, Atlanta, Dallas or Los Angeles. However, the time has come for Colorado to be seriously considered as a premier datacenter location.

A number of data center providers now have Colorado data centers in their service portfolios, with dozens of sites now located in Denver and the rest of the state. Today, there is close to 3 million square feet of data center space in just the Denver area, with over 1 million square feet of that dedicated just to colocation.

But what has made the state so attractive for data center services? Let’s take a look at some of the main advantages of constructing and operating a data center in Colorado:

 

Low risk climate ideal for Disaster Recovery
In recent years, demands for disaster recovery have considerably risen as enterprises place a higher focus on business continuity. These needs can be ideally met with a Colorado data center, thanks to the state’s low-risk climate and geographical features. Whether utilizing a Colorado data center as a primary service location or a redundant site, the state offers an optimal area for disaster recovery.

The state boasts a calm climate, typically free from inclement weather such as hurricanes, earthquakes, tornadoes and other severe storms. This considerably lowers the risk for data center services, not only helping to ensure availability and uptime, but also helping to guarantee that the facility itself is at a reduced threat for structural damage that can impact sensitive machines.

Despite the state’s low-risk climate, many data center providers take precautions with their Colorado facilities anyway, further ensuring their safety in the event of atypical weather.

 

Low cost for leased data center space

For occupiers seeking to preserve capital or lease a data center, the selection process needs to carefully consider the primary cost variables of rent, power and taxes, and recognize the variability that exists from market to market. Besides offering cost-efficient utility resources like water and power, a recent study also found that Denver boasted more competitive prices for leased colocation space than other major markets in the U.S.

A 2014 study found that, in comparison to other major markets, Denver was a comparably better value than Northern New Jersey, Kansas City, Chicago and Northern Florida in regard to leased data center space.

 
Potential for data center tax incentives
Last year, Colorado legislatures considered new data center tax incentives which could help attract more business to the state. Although the bill, which could have provided as much as $3 million per company for the purchase of data center equipment, failed to pass in 2015, officials are looking to reopen the discussion this year.

 

Contact ProviNET today to learn more about our Colorado data center colocation initiatives and how they will benefit your organization.

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