How Denver Tech Center Grows the Data Center Industry

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August 25th, 2016 at 09:14
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How Denver Tech Center Grows the Data Center IndustryDenver Tech Center has been growing rapidly, and this has had a direct impact on the growth of the data center industry.

Denver is a hub for tech companies like HP, Oracle, and IBM, who have a significant presence in the city. In fact, Oracle bought Denver-based Datalogix for a massive sum of $1.2 billion to further expand its presence in the region.

However, it’s not just the tech giants. Since the establishment of the technological center in the 1970s, companies such as PepsiCo, Nestlé, and Boeing have all been operating out of the region for years (and they also have colocation needs that grow each year).

It’s also good to note that the presence of reputable universities in the area also means a well-educated workforce which is easily accessible.   

The perfect mix of technology, skills, and investment has made Denver the place to be with a vibrant startup scene. As a result, data center traffic is rapidly growing in Colorado enabling users and enterprises to be more agile and productive.

The Rise of Capacity Requirements and Cloud Services  

Rapid growth has had a direct impact on the enhanced adoption of data centers and cloud services across every industry imaginable. As a result, it’s no surprise that colocation in Denver is growing rapidly to meet the needs of the market.

Capacity requirements across various market segments are driving massive investments in data center development. Further, experimentation with new designs and technologies like the Internet of Things (IoT) are testing the limits of data center performance. At the same time, colocation is becoming increasingly competitive. 

According to a recent report by Cisco, over the next three years, data center traffic will triple and reach 10.4 zettabytes per year by 2019. Further, 4 out of 5 data centers will process their workload in the cloud while 83% of the traffic will also be generated from the cloud.

With all these institutions needing robust colocation solutions, data centers are also expanding to meet the demand.

Denver Tech Center has the Potential to Change the Industry

The growth of the colocation industry in Colorado has the potential to change the industry. Growth and change can take place simultaneously and will be driven by the following:

  • Custom designs
  • Testing of multiple solutions

Enterprises will have collective and individual needs that are versatile, so simultaneous testing of custom designs will enable colocation specialists to identify the best option that offers the following:

  • Speed
  • Reliability
  • Flexibility
  • Lowest cost

At the same time, it’s important to realize that not all technologies and designs will have broad applicability.

Bottom Line

Denver Tech Center has been continuously growing since the 1970s and is showing no signs of slowing down. So expect significant investment and expansion within the colocation space in the region.


Are you working for an MSP in Denver? What’s your experience with colocation in the area? Please share your thoughts and experience in the Comments section below.


And if you’re an MSP in the metro Denver area, be sure to watch our webinar recording on The Road Ahead for Denver’s Outsourced IT Services Providers.


Webinar Recording: The Road Ahead for Denver's Outsourced IT Services Providers: Watch On-Deman