And the best place to build a data center is …
A new report Monday lists Quincy as one of the most attractive locations in the nation to build and operate a data center. The city already has eight, with a least three undergoing major expansions.
Conducted by global real estate firm CBRE, the report says Quincy’s cheap electricity — the study ranks it as the lowest-cost power market in the U.S. — along with low-cost land, low risk of natural disasters and a skilled workforce has made the area a top choice for data centers, including those already built by tech giants Microsoft, Dell, Intuit, Yahoo, Sabey, Vantage and others.
CBRE’s report said building and operating a typical 5-megawatt data center in the U.S. costs around $270 million over a 10-year period. But locating a data center in Quincy could result in savings of up to $141 million over the same time period.
Data center markets with the highest costs are Silicon Valley, San Antonio, Boston, Chicago and Minneapolis, said CBRE.
Additionally, the report says that one-user data centers — such as those for Microsoft and Yahoo — are drawn to rural locations such as Quincy for their efficient, quick-process permitting and zoning and local and state tax incentives.
In estimating power costs as a share of total project costs, CBRE ranked Quincy at the top of the list with 6.5 percent, Chicago with 7.1 percent and Des Moines with 8.9 percent. Among the nation’s 30 top markets for data center construction, the average power costs as a share of project costs was 13.2 percent.