Data Center Frontier special report: Denver data center market

Introduction

This report was prepared by Data Center Frontier, in conjunction with datacenterHawk.

About data center frontier

https://www.datacenterfrontier.com/

Data Center Frontier charts the future of datacenters and cloud computing. We write about what’s next for the Internet, and the innovations that will take us there. The data center is our prism. We tell the story of the digital economy through the facilities that power the cloud and the people who build them. In writing about data centers and thought leaders, we explain the importance of how and where these facilities are built, how they are powered, and their impact on the Internet and the communities around them.

Data Center Frontier is edited by Rich Miller, the data center industry’s most experienced journalist. For more than 15 years, Rich has profiled the key role played by data centers in the Internet revolution.

About Datacenterhawk

www.datacenterhawk.com

Data Center Hawk is a technology company firm located in Dallas, TX. We strive to create industry leading products that enable customers to make confident decisions in the data center market.

The Hawk Product Suite is designed to help customers locate, evaluate, and analyze data center solutions quickly. Hawk Search, Compare, Zoom, Financials, Swap and Insight are available through subscription only.

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Market overview & analysis

Digital transformation is boosting the importance of IT infrastructure for businesses of all sizes, in all markets. Denver is a prime example of a “second tier” digital hub driven by demand from local businesses with growing requirements for data center space. The Mile High City has one of the fastest-growing technology ecosystems in the United States and is home to numerous colocation providers, carriers, technology companies, IT services providers, and regional/HQ in-house data centers.

Denver is a major U.S. fiber hub, acting as a central relay point that connects West Coast backbones and end users to major Midwest and East Coast markets. After establishing an early reputation as a prime location for data backup, Denver has emerged as regional market for retail colocation, supporting both enterprise and service provider customers. In recent years, data center companies have begun building larger data centers in the Denver region, and offering wholesale space.

The Denver market is home to 750,000 square feet(SF) of commissioned data center space, representing 71 megawatts (MW) of commissioned power, according to market research from datacenter Hawk.

Even though Denver is not one of the largest datacenter markets, it benefits from a strategic location, and is likely to gain a higher profile as America's IT infrastructure becomes more distributed. Datacenter development has traditionally been focused on six to eight markets: Northern Virginia, Silicon Valley, New York/New Jersey, Chicago, Dallas, Atlanta, Phoenix and Los Angeles.

That is changing as the U.S. economy feeds off the momentum created by digital transformation, artificial intelligence and the Internet of Things. IoT device performance is dependent on limiting network latency. With the proliferation of IoT comes increased demand for increased density in communications infrastructure, specifically in regional business markets like Denver, that are already important destinations for data backhaul. Denver and similar markets will play a big role in the next stage of digital transformation as aggregation points for IoT data and analytics.