Denver continues to perform as a small market with a big data center punch. The metro doubled its data center absorption in 2020, growing from 2.5 to 5.3 megawatts – placing it just between the much larger Houston and Los Angeles markets.

As with Phoenix, data center construction in Denver was nonexistent in 2020 but steady growth through managed services, software, and cloud colocation requirements are creating opportunity and demand.

“Denver is always on the radar among the Fortune 500, particularly tech and finance companies as well as smaller retail colocation; its main source of demand,” says Mark Bauer, JLL managing director. “Rents in Denver remain competitive, though power has remained at 7.2 cents per kWh. That could change in the future as Denver continues to invest in renewable energy resources. Like Phoenix, Denver’s task on the demand side is to deliver the contiguous space that end users will require of this evolving market.”