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Choosing a City For Data Centers

Selecting a city when relocating or establishing a new data center.

The importance of selecting a city to which a data center will be relocated or established is often under-appreciated by those engaging in this process. This is especially true when a business conducts the relocation itself, but there are many aspects to this critical decision that are overlooked even by experienced Relocation Services providers.


Top Cities for Data Center Relocation

This data changes year to year, or even month to month depending on local developments. It can also vary highly based on the size and operating parameters of the proposed Data Center. However, in general, the current “Best Of” list in no particular order includes:

  • Sioux Falls, SD - With the cheapest annual operating costs, if price is the single most important factor it is hard to think of a better city for relocation.

  • Boise, ID - Cheap wind power reduces TCO, and tax breaks for relocation can be significant. Both Microsoft and Google have data centers in Idaho.

  • Dallas / Houston, TX - Proximity to Mexico and Central America offers many benefits, and there are compelling tax breaks available. Microsoft and IBM have chosen Texas for several data centers for these reasons.

  • Portland, OR - Ready access to cheap hydroelectric power is a significant bonus, offering lower TCO and a reliable power grid. This is why Amazon chose Portland.

  • Silicon Valley, CA - Despite very high prices, the vast number of high-end customers make this a high-potential site.  The list of companies with data centers here is lengthy.


Cities to Avoid When Relocating

Despite some features that may, at first glance, make these cities appear to be viable candidates for data center relocation, they are outweighed by the drawbacks for most projects - high taxes, prices, and salaries make them unpalatable. Local business regulations may also contribute to their lack of appeal. 

  • New York City

  • San Francisco

  • Chicago

  • Minneapolis

  • Buffalo


It’s clear that the choice of cities for data center relocation is of utmost importance, both for access to data loads and managing expenses. Consider these factors when making this decision, so that costly mistakes can be avoided.

If you would like to ensure the decision is the right one, based on up-to-date information and analytics, please contact us to arrange a consultation. MultiTek Global is your trusted data center consultant services provider, and also offers the premier global data center relocation services.