Technology Allows Alternative Locale Strategies

For many years, businesses have focused on placing infrastructure near their customers. This has also been the case for technology businesses as well; data centers were placed near customers for the best connection speeds at the lowest cost.

As the times have changed, however, connection speeds have increased and the expense to make those connections has decreased. For those reasons, these companies are no longer bound to being nearby their customers. Instead, the businesses are turning to alternative locations that offering them other benefits. Frequently, these companies are now placing data centers in locations that are subjected to extreme cold. See, data centers get VERY hot and one of the largest expenses in technology is keeping servers running cool and efficiently. Placing data centers in cold areas allow the companies to bring cold in from the outside (at very low costs) and use that as opposed to AC. They are also, when possible, placing these data centers in locations where affordable energy is available.

Source: http://www.businessweek.com/articles/2014-01-30/scandinavia-draws-consumer-web-data-centers

Great Resource going forward: http://www.businessweek.com/reports/technology/enterprise-tech

 


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