Sioux Falls, South Dakota is Named the Best Place for Lowest Cost Data Centers

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Sioux Falls, South Dakota, is found to be the least expensive city in the nation to operate a data center, according to a study by The Boyd Company. South Dakota based company, DataVator, launched in June, 2010, capitalizing on the low cost of land and green energy. Companies from coastal cities are making their way to the Midwest for cost savings of up to 60 percent.

"DataVator compared prices of colocation services at eight companies in the San Francisco Bay Area. Prices for rack space in DataVator's South Dakota colocation facility average 41 percent less.

Sioux Falls, South Dakota is the least expensive location in the nation for data center operation, according to a study by the Boyd Company, based in Princeton New Jersey. The report analyzed costs such as labor, power, land, and taxes, formulating a Top 10 List of least and most expensive cities to operate data centers. “All things considered, Sioux Falls is the best city for a data center,” Boyd says. Forbes Magazine agrees that Sioux Falls has the lowest business costs. For the seventh straight year, Forbes deemed Sioux Falls the best city for business and careers. With business costs that are 26% below the national average, and no state, individual or corporate taxes, the city holds the low-cost title.

For businesses searching to lower their data management costs, South Dakota may become more than a fly-over state. The Boyd report discovered the cost of buying land and building a data center in New York would be $4.2 million annually, compared with $2.8 million in Sioux Falls. Several companies are already benefiting from the lower prices in the Midwest and house their data centers in South Dakota. Wells Fargo, Citigroup, Premier Bankcard and HSBC are among those that have found major cost savings.

Power costs also play a key role in keeping expenses down. “Here in the Midwest, our power costs can be 50 percent less than the coastal regions. Abundant energy supply, low-cost land and very low risk of natural disasters make our state an ideal location for data centers,” said Scott Sandal, CEO of DataVator, a South Dakota based Data Center Management Company. For example, DataVator compared prices of colocation services at eight companies in the San Francisco Bay Area. Prices for rack space in DataVator's South Dakota colocation facility average 41 percent less.

DataVator capitalizes on the advantages of doing business in Sioux Falls, working as an agent to find the lowest-cost data management solution. “We have access to all the Midwest resources necessary to find the lowest-cost option for any company in the nation,” Sandal said. According to him, data centers built in densely populated regions have encountered obstacles such as sky-rocketing power costs or the inability to get enough power properly supplied to the data center. “The cheapest power in the world does no good without proper power management and efficient utilization of existing energy within the data center environment,” he said. “When good practices are coupled with South Dakota’s low cost of doing business, major cost savings- sometimes up 60 percent - are passed on to clients.” For more information, visit http://www.TheDataVator.com or call 800.455.5380, ext. 101.

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