Most affordable colocation city in US

Started by Movut, Jun 17, 2022, 05:32 AM

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MovutTopic starter

Does anyone know what city might be the cheapest colocation in the country? For a major metro area.
Where the electric and space will be the lowest.


Vegas has really cheap power but not as many good datacenter or transit options.

Central Washington has probably the cheapest power in the country due to Hydropower, but again, limited colo and transit options. H5 can do colo there. Central Washington are limiting crypto usage but traditional colo is not necessarily impacted.

Some parts of North Carolina are popular, presumably due to low costs.

A huge percentage of colo costs is all the electrical and cooling infrastructure construction and maintenance costs. Once you are outside of the most expensive cities in the US for labor costs, the costs of that infrastructure from city to city don't change too dramatically.

Maybe 1/3 of colo cost comes from electricity in Phoenix, AZ so even if electricity were 50% higher or 50% lower, the impact to colo cost would only be plus or minus 15%.

Real estate is similar as a $10 million warehouse may cost $40 million to convert into a datacenter of an appropriate power / cooling capacity for a building of that size. So if you find a building being "given away" for $5M, or you are in a higher cost area where the same building is $15M, the total impact to colo costs is at most plus or minus 10%.

So yeah, NYC, LA, SF, where real estate, labor, and electricity are easily twice the cost of nearly everywhere else, colo is going to cost a lot more. But the cost differences from one inexpensive city to another, is far smaller.

MovutTopic starter

Any other smaller tier 2 or 3 cities?


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