The Dakotas are generally not the first area that comes to mind when considering where to develop a new data center. Technology hubs like Silicon Valley and Houston or metropolises like New York or Chicago are easier to understand as primary choices for a new data center development. However, shunning the Dakotas because they are not high-paced, high-pressure, high-cost metropolitan centers is a mistake that shows up in the bottom line.
The Dakotas offer locations where operational costs can be contained. They offer benefits of low cost power and an environment that allows for nearly free cooling for most of the year. Low operational costs are especially important to the cloud computing market, which is becoming very competitive. The business model for cloud providers has evolved to a turnkey model very similar to utility, but on a national level. Low cost providers are able to grab market share since services are selected on the basis of their cost. Data centers providing cloud services maintain their competitive advantage by building in locations that enable the providers to operate their businesses with the lowest possible total cost of operations.