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.

1. Colorado Springs
Next Emerging
Data Center Market

2. Data Centers
• Location
• Business Climate
• Workforce Development Program
• Taxes / Incentives
• Utilities
• Existing Data Centers

3. Site Selection Criteria
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

4. City and Site Advantages
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

5. 75 Mile Population Chart Denver
Monument
Woodland
Park
Colorado
25 50
Cripple Springs
75
Creek
Canon
City Pueblo
Over 3.3 Million people live within 1 hour of Colorado Springs.
2010 Census Forecast 30 Min 45 Min 1 Hour
Population, Total 629,411 1,140,339 3,326,501
Population, 20-64 years 388,395 696,745 2,073,100
20 - 44 years 225,336 393,841 1,189,540
45 – 64 years 163,059 302,904 883,560
Households 234,949 416,846 1,279,625
Median Age 34.5 35.5 36.0
Per Capita Income $27,936 $31,899 $31,694
Median Household Income $61,915 $66,655 $64,801
Source: CACI International, 02/11

6. 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

7. United States
2 Hours
Minneapolis
3 Hours
2 Hours Chicago
3 Hours Salt Lake City
San Francisco
6 Hours
Washington DC
3 Hours
LA COLORADO
2 Hours
Las Vegas
Airlines: 2 Hours
Phoenix
2 Hours
3 Hours
Atlanta
Dallas
Allegiant
American 2.5 Hrs
Continental Houston
Delta
Skywest/United

8. Colorado
Wyoming
Utah
Nebraska
I-70
Vail
Denver
Aspen
Breckenridge 1 Hour
Colorado
Springs
Kansas
New Mexico
I-25

9. Natural Disaster Map
Colorado
Springs
EARTHQUAKES TORNADOES HURRICANES OTHER
High Risk Extreme Risk Extreme Risk Volcano Risk
Medium Risk Some Risk Some Risk

10. 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

11. 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

12. 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

13. 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

14. 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

15. Tax Benefits
• No Tax on Inventory
• No City Tax on Custom Software
• No State Tax on Computer Software
Source: Stockman Kast Ryan & Company, January 2011

16. 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

17. Colorado Springs Utilities
• 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

18. 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.

19. 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%.

20. Power: Cost Effective

21. MSA Climate Facts
30 Year Average
• 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 Sunshine300 days
(Including Partly Cloudy)
Source: Weatherbase (www.weatherbase.com), Data from 1991 - 2009, 10/10

22. Data Center Operating Cost
Comparison
Colorado
Springs
Denver
Omaha
Cheyenne
Phoenix
Austin
$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
Data provided by

23. 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

24. 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.

25. 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.

26. 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

27. 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)

28. Denver Metro
70 miles
FedEx Services Corporation
Progressive Insurance Company
Air Force Black Forest
Academy 25 83
Walmart Planned Data Center
Quantum
Research Pa
rkway
Woodmen Road
Woodmen Rd.
Hewlett Packard
Marksheffel
Powers
Garden of The Gods Road
Agilent Technologies Inc. Sky Sox Stadium
Academy
85
Manitou LSI Verizon 87 94
Springs Wireless
25
25
94
COLORADO SPRINGS
AIRPORT
24
Broadmoor
Drennan Drennan Road
Road
Academy Blvd.
Powers
Cheyenne Fort Carson
Mountain
25
Pueblo
38 miles
Fountain

29. More Information
Everett Thompson
CEO
Wired Real Estate Group
info@wiredre.com
David L. White
Executive Vice President, Marketing
Colorado Springs Regional Economic Development Corporation
dlwhite@csedc.org
719-471-8183