Data centers shuffle off to Buffalo — and other affordable places

Cheap power, other factors lead organizations to new locales

Buffalo, N.Y., is becoming one of the hot locations for data centers, partly because of the low cost of hydroelectric power from nearby Niagara Falls.

Jim Duffy in Network World reports that Yahoo recently opened a green data center in nearby Lockport and cites a Business First of Buffalo report that Verizon is considering a new data center in Niagara County.

In addition into relatively cheap power, the Buffalo area also has cool temperatures, which brings down power costs, and tends to be free of earthquakes, floods and other natural disasters, according to Network World.


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The overall costs of running a large data center can be a bigger factor that location for some organizations. Studies in recent years of data center costs have found that some organizations have been priced out of places such as New York City and San Francisco and are instead moving to the sticks.

Sioux Falls, S.D., is the most affordable place for a center, according to a study by the Boyd Company, which advises companies on real estate expansions, reported in Data Center Knowledge.

Boyd’s studies rank data center locations based on the costs of land, labor, power and property taxes, estimating the annual cost of running a 125,000 square foot financial services data center.  By those standards, Sioux Falls tops the most recent survey, in 2008, with a cost of $11.2 million. Huntsville, Ala., follows at $11.7 million, according to the report.

Rounding out the top 10 are Bloomington, Ind.; Winston-Salem. N.C.; Rolla, Mo.; Council Bluffs, Iowa; Tulsa, Okla.; Ames, Iowa; Des Moines, Iowa; and Charlotte, N.C.

 

 

About the Author

Kevin McCaney is editor of Defense Systems. Follow him on Twitter: @KevinMcCaney.

Reader Comments

Wed, Oct 6, 2010 jim Rome NY

Lockport also has the Erie Canal if you want to ship lumber or coal instead of electrons.

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