Pepsi Center was constructed as part of a large six-year sporting venue upgrade in Denver along with Coors Field, home of the Colorado Rockies, and Sports Authority Field at Mile High (formerly Invesco Field at Mile High), home of the Denver Broncos. The complex was constructed to be readily accessible. The arena is situated at Speer Boulevard, the main thoroughfare in downtown Denver, and is served by 2 nearby exits off Interstate 25. A light rail station is on the western side of the complex.

The ground was broken for the arena on November 20, 1997, on the 4.6-acre (19,000 m2) site. Its completion in October 1999. Also included in the complex are a basketball practice facility used by the Nuggets, and the Blue Sky Grill, a restaurant accessible from within and outside the Center itself.