Colorado Data Center Development Approved for $55 Million in Public Finance
On Sept. 28 the Vineyard Data Center Park, Colorado Springs, Colorado, received unanimous approval from the Colorado Springs City Council for $55 million in public funds. The funds will be used for land development for the Vineyards project, including telecommunications infrastructure, utility improvements, and open space to be used for recreation. The complete improvements will carry a price tag of $74 million, according to a study prepared by a Denver consultant of which at least $55 million will come from the municipality. Colorado Springs already is home to data centers operated by Progressive Insurance, FedEx and Hewlett-Packard, and Wal-Mart plans to begin construction of a northside data center over the next several weeks.
In addition to the above financing, the Vineyard site has been designated as a recipient of New Market Tax Credits from the Federal Government. With the above financing and NMTC incentives, the capital cost of constructing a data center at the Vineyard site is estimated to be reduced by 40 to 50 percent of comparable sites. This is in addition to inherent advantages of Colorado Springs, including 100% ambient cooling and 4.5 cent power.