Intelligent Investment

Denver

North America Data Center Trends H1 2023

September 6, 2023 4 Minute Read

DNV_Hero

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.

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