Denver, CO

300% increase in demand makes Denver a top 10 data center market

Margaret Jackson

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By Margaret Jackson / NewsBreak Denver

(Denver, Colo.) Driven by demand from the aerospace, defense and financial services sectors, Denver ranked among the top 10 most active U.S. markets for data center leasing in 2021, according to a report from CBRE.

Denver moved up to No. 8 from the 13th position it held in 2020.

Last year, the Denver market recorded 8 megawatts (MW) of data center space absorption, a measure of net leasing activity. That was a 299% increase from 2020, the greatest year-over-year change among the 17 U.S. data center markets CBRE tracks.

Denver added 6.8 MW of new inventory in 2021 and has another 10.5 MW of data center space under construction.

“Aurora and Colorado Springs are capturing much of the data center development activity in Colorado as they are home to numerous military bases and have available land,'' said Greg Vernon, senior vice president with CBRE’s Data Center Solutions group in Denver. “Aerospace, defense contractors and financial services continue to expand in Colorado, which is driving demand for data centers.”

CBRE’s report shows 493.4 MW of net absorption in the seven primary U.S. data center markets in 2021, a 31% increase over 2019’s then-record level and up 50% from 2020.

Northern Virginia remains the most active data center market with net absorption of 303.3 MW in 2021 — more than four times that of Atlanta, the second-most-active market.

In addition to Northern Virginia and Atlanta, the primary U.S. data center markets are Dallas, Silicon Valley, Chicago, Phoenix and the New York Tri-State area.

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