The rapid innovation in technology and a growing demand for greater network capacity, storage and speed has given way to the sprouting of hundreds of data center facilities nationwide. With 80% of the states acting as homes to the facilities, the question has shifted from the most effective design to the most effective location. Mission critical facilities have reached the furthest corners of our country, from upstate New York to Southern California, and have made their impact on the environment, economy and infrastructure of our nation. Now the task at hand is determining the most essential factors to consider when facing the decision of where to begin construction.

1. Energy: Power cost, availability and sustainability have become the most influential determinant in the location debate. The cost of electricity is at the forefront of all data center decisions and while some try to focus on cost savings by choosing locations rich in coal, other look towards renewable sources of energy, such as Yahoo’s new Chicken Coop facility that uses hydropower supplied by Niagara Falls.
2. Network Presence: Looks at the access to the Internet, and the ability to connect an organization with their servers in a data center.
3. Tax incentives: Facebook, Google and Apple have all initiated projects in North Carolina due millions of dollars offered in tax incentives and discounts on energy costs. Other states should take notes if they hope to allure data center contractors and technicians.
4. Latency: or the speed at which an organization can receive it’s data. This has become a hot topic for High Frequency Traders who need direct access through fiber optic lines, and therefore require data centers near the exchange.
5. Weather: With airside and waterside economizers and evaporative cooling, weather has driven the charge for increased efficiency and cost saving initiatives.
6. Land Costs: The middle of the country has been a hot bed of Data Centers due to low land costs.
7. Operating costs: This incorporates many of the categories. Electric bills, taxes and state regulations all affect the operating costs and conversely relate to data center bottom line.
8. Green Technology: Using the snow and air as a coolant has become popular and pushed data centers to cold climates such as upstate New York. (Check out Yahoo’s Chicken Coop)
9. Risks and Disasters: Natural disasters and terrorist attacks are two factors that should influence data center location. Disruption to service can have extremely adverse consequences for corporations.
10. Work Force: While the data center does not need a large number of employees to function, it is important to be in a location that has a knowledgeable IT workforce to choose from.

A recent study by The Boyd Company, a leader in corporate site selection, lists the cheapest states for data centers as Iowa, Alabama, Indiana, Oklahoma and Ohio, with the most expensive facilities located in New York and San Francisco. The data center movement is in full force. Tech giants are building new facilities at alarming rates, and while the middle of the US seems to be getting the most attention today, do not be surprised to see the outsourcing of data centers to Mexico, Canada and South America become more prevalent in the near future.