Intelligent Investment
Denver
North America Data Center Trends H1 2023
September 6, 2023 4 Minute Read
Colocation Insights
- Hyperscale requirements and demand continue to drive leasing and absorption in Denver, Aurora and Colorado Springs.
- Over 5 MW new capacity was brought online. The amount of absorption exceeded this total, at 5.3 MW.
- Leasing pricing increased 5% to 10% across all tiers.
Market Trends
- Xcel Energy is offering a discounted rate (termed an “Economic Development” rate) on power via a tiered structure, decreasing effective rates to $0.005-$0.01.
- Data center developers remain focused on Aurora and Colorado Springs, due to land and power availability.
- AI occupiers are actively touring space and seeking availability in the marketplace, but require increased power density to accommodate their needs.
- Operators are exploring liquid cooling solutions but will not immediately implement them.
Notable Activity
- There is 15 MW of available capacity across 27 regional facilities.
- Currently, only two regional facilities can accommodate large amounts of continuous power and space.
- Ubiquity acquired the edge data center firm EdgePresence.
- Arelion unveiled a new Denver-to-Bay Area fiber route.
Figure 1: Historical Market Information
Source: CBRE Research, CBRE Data Center Solutions, H1 2023.
Figure 2: Historical Supply and Demand
Source: CBRE Research, CBRE Data Center Solutions, H1 2023.
Figure 3: % of Total Secondary Market Inventory
Source: CBRE Research, CBRE Data Center Solutions, H1 2023.
Figure 4: Market Fuel Mix
Source: Xcel Energy.
Figure 5: Average Asking Rates
Source: CBRE Research, CBRE Data Center Solutions, H1 2023.
Explore Markets
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AI and machine learning demand is complementing cloud service provider demand.
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An existing tenant in Centeris Data Center in South Hill expanded their leasing space by 2 MW.
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Data providers continue to scout available land and conversion opportunities in the North Valley, as development opportunities remain limited in downtown LA.
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