What is surprising is that to me where you see datacenter build out hand over fist isn’t really in the midwest where one might assume due to low land costs. Surprisingly, the heart of the datacenter buildout seems to be northern virginia. Not exactly a cheap land sort of former one horse town.
So they can put it on a page like [1] and [2]
Most large companies impose certain costs on society, and have to manage their reputation. Often it's cheaper to improve public opinion in a peripheral area than to address deep-seated problems.
Putting a data centre close to a hydroelectric dam helps offset your product's impact on users' mental health, your disregard for competition law, etc.
[1] https://datacenters.google/operating-sustainably/ [2] https://sustainability.atmeta.com/data-centers/
I don't buy that reasoning, even with that desire to manage their reputation:
Those lists are the companies marking their own homework and congratulating themselves as PR, AKA "greenwashing". They can do that just fine by spinning a single metric of their choice where they do less-badly than their pick of mean, median, and mode of whoever else they want to compare themselves against, they don't actually need to be genuinely eco-friendly at anything.
Latency I guess? I'm seeing this in my own country were everyone wants to be close to AMSIX. Which as you may have guessed also happens to be the most expensive and densely populated part of the country...
Yep, Northern Virginia gets you close to the BosWash megalopolis and pretty close to better than half of the US population. It also gives you access to a highly educated workforce and pretty much no natural disasters of note.
There's also network (pun intended) effects. Northern Virginia has been a major internet hub for a long time, with the first non-government peering point and a bunch of telecom companies, including AOL.
The data center land isn't that expensive anyway. Northern Virginia can be tremendously expensive, but the data centers are built out in the relative sticks. I'm sure the land would be cheaper in Wyoming, but it's cheap enough.
I was thinking of a slightly different incentiviser, you're right next to the county's largest collection of bought-and-paid-for politicians, if you need the rules bent a little, or a lot, you can point to your data centre off in the distance and remind them what you're paying them for.
Cheap land is nice, but it's not the only concern. Data centres make a lot more money per square foot than things like farming, after all.
You also want cheap, reliable power. Ideally eco-friendly. And you want backbone connectivity, of course. Local suppliers who know the construction and maintenance needs of a data centre. No earthquakes, hurricanes, wildfires, flooding, or tornadoes. A local government that won't tax you too much, and that won't get upset when you employ very few people.