Denver is a leading U.S. IT market. According to the Metro Denver Economic Development Corporation (Metro Denver EDC), the IT sector in Denver is “surging.” The organization reports that there are close to 8,000 IT companies in Denver, which employ about 89,000 people. It finds that the average wage in this industry is $148,000. In its “2023 Industry Cluster Study, ” Metro Denver EDC states, “The Metro Denver region continues to be a magnet for information technology start-ups and legacy businesses, and is a leader in cybersecurity, cloud-based technologies, and various software solutions.”
According to CBRE, in its “Scoring Tech Talent 2024” report, within the Denver tech sector, the computer support, database, and systems category employs the most people (about 53,000), followed by software development and programming (about 52,500). However, as Metro Denver EDC stresses, the IT sector in Denver supports businesses in many industries, providing a wide variety of services including security, software applications, networks, operating systems, and data processing.
A Look into Major Denver IT Industries
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Aerospace: According to the Colorado Office of Economic Development & International Trade (OEDIT), Colorado has more than 2,000 aerospace businesses, which support about 55,000 jobs, many of them in the Denver area. It states, “The aerospace and defense industry is an economic engine for the State, attracting federal contracts at a record pace this past year, winning over $23 billion in federal contracts, another $12.5 billion economic impact from our military bases and $3.4 billion to our federal labs.” Aerospace companies in the Denver area include Ball Aerospace, Northrop Grumman, York Space Systems, Zivaro, Beyond Gravity, and Raytheon Intelligence & Space.
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Financial Services: According to MetroDenver EDC, more than 100,000 people are employed by more than 36,000 financial services companies in Denver. Denver has more than 80% of the total financial services jobs in the state. MetroDenver EDC finds that employment within this sector is split fairly evenly between banking, insurance, and investments. Major companies include Fidelity, JP Morgan, Elevations Credit Union, and FirstBank. Denver also has a substantial FinTech sector, with over 180 companies including Pie Insurance, Block, and Moov Financial.
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Bioscience: The Denver bioscience sector employs more than 17,000 people, according to MetroDenver EDC, with a relatively high average wage of about $145,000. According to the OEDIT, 90% of the bioscience companies in the state are in the Denver area, at the Fitzsimons Life Science District and nearby Anschutz Medical Campus. It says, “As one of the most ambitious medical developments in the nation, the $5.2 billion project encompasses 578 total acres and more than six million square feet of cutting-edge space and services that will eventually support more than 43,000 bioscience professionals.”
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Energy and Natural Resources: Colorado has many natural energy resources, including oil and gas, and renewable energy sources such as wind and solar. This sector of the economy employs more than 80,000 people. According to MetroDenver EDC, Colorado recently ranked second in the country for its concentration of energy and natural resources companies. In addition, it states, “The cluster generates some of the highest per-worker income levels in the state.” A number of new energy projects have recently been approved in Colorado, including drilling expansions for PDC Energy and an oil and gas development by Occidental Petroleum.
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Healthcare: Denver has been ranked as one of the healthiest cities in the United States and is a national leader in healthcare. This industry is one of the largest employers in the area, and employs more than 240,000 people. According to MetroDenver EDC, “Over the past five years, the Healthcare & Wellness cluster posted 10.9% growth, more than three times faster than the U.S. growth rate of 3.4%.” Demand for healthcare services is expected to rise in the future due to an aging population and growth in the total population.
An Overview of IT Salaries in Denver
In Denver, most IT experts earn a salary that is higher than the national average.
- Software Engineer: $125,000 (national average: $123,000), Indeed
- Data Analyst: $85,000 (national average: $82,000), Indeed
- DevOps Engineer: $143,000 (national average: $128,000), Indeed
- IT Project Manager $115,000 (national average: $105,000), Indeed
- Cybersecurity Analyst: $130,000 (national average: $126,000), Glassdoor
- Cloud Architect: $204,000 (national average: $95,000), Glassdoor
- IT Technician: $80,000 (national average: $74,000), Indeed
- Systems Administrator: $90,000 (national average: $89,000), Indeed
Trends in Denver’s IT Sector
There has been strong growth in Denver’s IT market in the past few years, and most experts expect that this trend will continue. According to MetroDenver EDC’s Cluster Study, tech companies that have recently expanded in, or relocated to, Denver, or plan to do so, include Trimble, Edge R&D, HNA Live, Dynatrace, and RevGen Partners. Denver came in eighth place in CBRE’s “Scoring Tech Talent 2024” report, which ranks tech markets in the United States and Canada by analyzing job markets and innovation.
In a report summarizing the Denver data (Denver Climbs Two Spots to #8 Among Top North American Tech Markets in CBRE’s Annual ‘Scoring Tech Talent’ Report), CBRE states that the tech workforce in Denver grew by more than 12% over the past five years, which equates to more than 14,000 new jobs. CBRE senior vice president Ryan Link stated, “Colorado’s tech talent employment is expanding across several industries.... Tech, aerospace and financial companies are adding tech talent in Denver and Colorado Springs.” He stresses that the diversification of the city’s tech sector puts it in a strong position, explaining, “This diversified workforce will remain secure and robust as companies continue to expand in our markets.”