next emerging data center market: colorado springs
DESCRIPTION
Why is Colorado Springs the Next Emerging Data Center Market? It has its advantages: Not susceptible to nature disasters, low utility rates, protected underground and reliable power and IT infrastructure, major network presence, cool/dry environment and more. Read why Colorado Springs is the next emerging data center market.TRANSCRIPT
Colorado Springs
Next Emerging Data Center Market
Data Centers • Location • Business Climate • Workforce Development Program • Taxes / Incentives • Utilities • Existing Data Centers
Common criteria used in data center site selection: • Risk of natural or man-made disasters • Local business climate • Cost of Power • Proximity to telecom providers • Skilled employee base • Resiliency of design/construction of data center • Efficiency of data center
Site Selection Criteria
Why the National IT Industry Values Colorado Springs: • Not susceptible to either natural (tornados, hurricanes, earthquakes) or man made disasters • Removed from any potential terrorist targets (political, military) • Proven and mature data center market • Colorado Springs Utilities offers some of the lowest utility rates in the nation • Utility infrastructure is protected underground and reliable (power and IT) • Significant network presence from all major telecom providers • Cool, dry environment is very favorable for cooling facility
City and Site Advantages
Denver
Over 3.3 Million people live within 1 hour of Colorado Springs.
Pueblo
Cripple Creek
Canon City
Woodland Park
Colorado Springs
Monument
50 75
25
Source: CACI International, 02/11
2010 Census Forecast Population, Total Population, 20-64 years 20 - 44 years 45 – 64 years Households Median Age Per Capita Income Median Household Income
45 Min 1,140,339
696,745 393,841 302,904 416,846
35.5 $31,899 $66,655
30 Min 629,411 388,395 225,336 163,059 234,949
34.5 $27,936 $61,915
1 Hour 3,326,501 2,073,100 1,189,540
883,560 1,279,625
36.0 $31,694 $64,801
75 Mile Population Chart
Quality of Life • Mountain resort quality of life • Vibrant arts & culture community • Denver sports, arts & culture nearby • Two hours to major ski resorts • Delightful sunny and dry climate • Diverse sporting activities • Vibrant downtown • Easy come, easy go airport • Major visitor attractions
United States
LA 3 Hours
3 Hours
Las Vegas 2 Hours
San Francisco
Minneapolis 2 Hours
Chicago 3 Hours
Atlanta Phoenix 2 Hours 3 Hours
2.5 Hrs
2 Hours Dallas
Houston
6 Hours Washington DC
COLORADO
Airlines: Allegiant American Continental Delta Skywest/United
Salt Lake City 2 Hours
Nebraska
Wyoming Utah
New Mexico
Colorado
I-70
I-25
Colorado Springs
Kansas
Aspen Breckenridge
Vail Denver
1 Hour
Volcano Risk OTHER EARTHQUAKES
High Risk Medium Risk
Extreme Risk Some Risk
TORNADOES Extreme Risk Some Risk
HURRICANES
Colorado Springs
Natural Disaster Map
Highly Rated Business Climate and Quality of Life
1. 17th Most Secure Place to Live Source: Farmers Insurance Group, December 2011
2. 5th Best State for Business and Careers
Source: Forbes.com, November 2011 3. 5th Great City for Young Adults
Source: Kiplinger, October 2011 4. 4th Best Value City
Source: Kiplinger’s Personal Finance, July 2011 5. 15th Best City for Families
Source: Parenting.com, July 2011 6. 5th Best State for Business
Source: CNBC, June 2011
Business Strengths � 34% of adults have a 4-year college degree � 93% of adults have a high school diploma � Diverse business base � Experienced, professional labor maximizes
productivity, reduces costs � Central U.S. location in the Rocky Mountain Time
Zone � Extensive telecommunications infrastructure � Four Technical-scientific military activity centers
Air Force Academy; Schriever & Peterson AFB; NORAD
Workforce Partnership UNIVERSITY OF COLORADO AT
COLORADO SPRINGS Bachelor, Masters, Ph.D. Degrees
PIKES PEAK COMMUNITY COLLEGE
Customized Training COLORADO TECHNICAL UNIVERSITY
Associate, Bachelor, Master, Ph.D. Degrees PIKES PEAK WORKFORCE CENTER
Placement and Training Assistance
Source: Stockman Kast Ryan & Company, January 2011
Corporate Income Tax – 4.63% Rate With Adjustments
– No “S Corporation” State Tax
– For apportioning income between states, a single-factor method is used, by which all business income must be apportioned on the basis of the Colorado sales as a percentage of total gross sales.
Source: Stockman Kast Ryan & Company, January 2011
Personal Income Tax
– 4.63% of Federal Taxable Income, with Adjustments
– Alternative Minimum Tax - 3.47% of AMT Income calculated using Federal rules with appropriate state adjustments
Source: Stockman Kast Ryan & Company, January 2011
Tax Benefits • No Tax on Inventory
• No City Tax on Custom Software
• No State Tax on Computer Software
Connectivity
• Many fiber carriers and fiber redundancy in the area, due to IT operations and strategic military operations.
· AT&T · Sprint · Verizon · XO · tw Telecom · Level 3 · Windstream · CenturyLink
• 4 Service Municipally Utility
• Reliable and Low Cost Service
• 75% Buried Utility Lines
• Multiple Rate Options
• Fixed Price Options
• Large Power & Light Rate (approximately 4.5 cents per kWh) for qualified large customers – 4MW demand and high load factor
• Operates on 4 (9)’s of Reliability
Colorado Springs Utilities
Colorado Springs Electric Rates Rate Class Average rate per kWh* Industrial Service - Time of Day – $ 0.0675 1,000 kWh/day minimum Industrial Service - Time of Day – $ 0.05319 500 kW minimum Industrial Service - Time of Day – $ 0.05314 4,000 kW minimum Industrial Service - Large Power & Light – $ 0.04487 (at least 4 MW demand) *Based on bill for a typical customer for each rate class. Actual rate will vary depending on customer’s consumption and demand patterns.
Colorado Springs Utilities
RENEWABLE ENERGY • Colorado Springs Utilities supports the use of renewable
energy to reduce the demand of fossil fuels for energy production and produce cleaner energy.
• Fuel mix: 45% coal, 45% oil/natural gas and 10% hydro.
• The Colorado Springs climate allows for over 8,000+ hours of free cooling per year (92%). When operating within ASHRADE2008 TC 9.9 recommendations, free and pre-cooling is 7,100 hours / 8,760 hours = 81%.
Colorado Springs Utilities
Power: Cost Effective
Source: Weatherbase (www.weatherbase.com), Data from 1991 - 2009, 10/10
30 Year Average
MSA Climate Facts
• Average Annual Precipitation 17.5 Inches • Average High Temperature
– July 85 Degrees – January 41 Degrees
• Average days of Sunshine* 250 days (Clear Skies)
• Average Days of Sunshine 300 days (Including Partly Cloudy)
Data Center Operating Cost Comparison
$0.00 $1,000,000.00 $2,000,000.00 $3,000,000.00 $4,000,000.00 $5,000,000.00 $6,000,000.00 $7,000,000.00
Austin
Phoenix
Cheyenne
Omaha
Denver
Colorado Springs
Data provided by
State of Colorado COLORADO FIRST TRAINING PROGRAM • Job Training Grant for permanent, full-time positions; • Up to $800 per employee based on fund availability and qualifying
JOB GROWTH INCENTIVE TAX CREDIT PROGRAM A state income tax credit to businesses with job creation projects. • Minimum of 20 net new jobs created; • Tax credit up to 50% of FICA paid by the company over 5 years; • Average wage at least 110% of average county wage ($43,000); • Approval PRIOR to announcement of decision
City of Colorado Springs RAPID RESPONSE TEAM • Expedited development plan review and permitting.
• Reduce by about half the typical approval process time.
• One contact for centralized responses.
BUSINESS PERSONAL PROPERTY TAX CREDIT Primary employers, defined as those companies that sell 50 percent
or more of their business’ goods or services outside of El Paso County, may be eligible for a credit of up to 50% of personal property taxes on city personal property tax liabilities for up to four years with opportunity for a six year extension. Credits on Large Personal Property Investment (4 years)
City - 50% credit - above $1 million - 90% credit - above $5 million
County - 100% credit
Negotiated with the City of Colorado Springs, based on results of an economic impact analysis.
El Paso County EL PASO COUNTY ENTERPRISE ZONE STATE INCOME TAX CREDITS
• 3% Investment Tax Credit • Job Tax Credit ($500 / per new employee) • Employer-Sponsored Health Insurance ($200 / per new employee for 1st 2 years in zone) • 3% R & D Tax Credit • 10% Job Training Credit
*If you have existing facilities in Colorado, these tax credits can be very beneficial
Colorado Springs Data Centers EXISTING or PLANNED DATA CENTERS
Agilent Technologies, Inc.
FedEx Services Corporation
Hewlett Packard
LSI
Progressive Insurance
Quantum
Verizon Wireless
Walmart (under construction)
83 Black Forest
Woodmen Rd.
Research Parkway
Manitou Springs
Garden of The Gods Road
85 87
Sky Sox Stadium
Mar
kshe
ffel
94
Pow
ers
94
Aca
dem
y
25
24
Drennan Road
COLORADO SPRINGS AIRPORT
Drennan Road
Academy Blvd.
Broadmoor
Pow
ers
25
Fort Carson Cheyenne Mountain
Pueblo 38 miles
Fountain
25
25 Air Force Academy
Denver Metro 70 miles
Woodmen Road
Agilent Technologies Inc.
Progressive Insurance Company
Hewlett Packard
LSI
FedEx Services Corporation
Walmart Planned Data Center
Verizon Wireless
Quantum
More Information Everett Thompson
CEO Wired Real Estate Group
David L. White Executive Vice President, Marketing
Colorado Springs Regional Economic Development Corporation [email protected]
719-471-8183