5 States That Offer Big Data Center Appeal

Does data center location matter? Just ask Google and Apple. The largest companies in the tech sector operate multiple data centers. Where they put them says a lot.

You might think the Pacific Northwest is the natural hub for data centers. You’re right. But data centers are also popping up in America’s Heartland, the Southwest and the Rockies. Here are some of the top locations in the United States to consider. (Don’t forget about Canada, an attractive choice thanks to cheap energy, low temperatures, skilled labor and political stability.)

John Brandon is a former IT manager at a Fortune 100 company who now writes about technology. He has written more than 2,500 articles in the past 10 years. Follow him on Twitter @jmbrandonbb.

Known more for corn fields, Iowa has housed a Google data center in Council Bluffs since 2009, while Microsoft plans to build in West Des Moines.

There’s a reason for this activity, says Hank Koch, vice president of data center facilities at TDS. Iowa has the nation’s second-largest installation of on-grid wind turbine, which translates to lower utility rates.

The Hawkeye State also has low crime and isn’t a prime target for terrorist activity. For about eight months, cooler temps on the Plains mean lower cooling costs. There’s also plenty of room for expansion, easy access to major highways and lower labor costs than, say, New York or California. One downside: Summer tornadoes.

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The Grand Canyon State made recent headlines by passing a new tax incentive that exempts data center equipment from sales and use taxes for 10 years. According to FireHost, a data center hosting company, Arizona is also a prime locale for data centers because of the low risk for natural disasters such as tornadoes and earthquakes.

Arizona also boasts a high concentration of IT workers—and that labor force will continue to grow as more companies build in the Phoenix area. Another major perk: Arizona is centrally located between technical hubs such as Dallas and Los Angeles, so data centers are easy for existing IT staff to access.

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