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The location of the data center migration is critical for the enterprise, and it is necessary to consider and weigh various factors. Industry experts found that fiscal incentives, local climate, power resources, fiber infrastructure, professional personnel, these five aspects are always the most important factor in the data center site selection.

(1) more preferential fiscal incentives
Today, more and more federal states in the United States have adopted legislation to attract and develop data centers, but not all States have the same fiscal incentive strategy. Some states only offer short-term benefits or cover only certain aspects of a project. Some states only offer incentives for small data centers, while others have set a threshold for incentives, such as limiting the minimum amount of bid, the size of the building, etc.. Although more states are taking corresponding measures, only a few states are offering concessions to transform existing businesses.
In the United States, only five states provide stronger incentives. Minnesota, for example, enterprises to establish a data center or network operation center space of at least 25 thousand square feet, the investment of at least $300 thousand in four years, with 20 years of sales tax exempt in computers and servers, cooling and energy equipment, energy use and software. This exemption is also applicable to customers who purchase equipment for these data centers or network operating centers, so this applies to both proprietary data centers and joint venture large data centers.
Sometimes rebuilding and expanding existing data centers is more meaningful than building new data centers. In Minnesota, in the last two years, the data center or network operation center was upgraded, with a space of at least 25 thousand square feet, and $500 thousand invested enterprises were eligible for tax incentives for sales of data centers in the state. In addition, Minnesota will not impose taxes on personal property, warehouses, utilities, Internet access, information services, or custom software. These exemptions create very favorable conditions for the data center.
In fact, since 2012, Minnesota has invested more than $200 million in the data center, has 25 data center facilities to obtain a sales tax exemption, there are more data center project is under preparation.
In the early 2000s, countries such as North Carolina, South Carolina, Oklahoma and Iowa developed legislation to support data centers, focusing on large enterprise users. However, many states have also amended legislation to encourage the construction of small and medium-sized data center facilities, and recognize the important role of these facilities in supporting the needs of users who do not need special data centers.
The success of some states in the data center depends on legislation and incentives, but this success is also due to other aspects of the business environment outlined below. But this success also depends on other aspects of the business environment.
(2) climate and risk factors need to be considered
Natural disaster / climate risk continues to play an important role in decision making of data center location. Because of the worsening weather conditions, it is critical to select places where it is unlikely to be affected by severe weather events such as tornadoes, floods or hurricanes, or other natural disasters, such as earthquakes or wildfires.
In addition, cooling costs also account for a large portion of the data center operating costs. In relatively cold climates, more natural cooling can be provided, and cooling costs can be significantly reduced when natural cooling air is used to reduce the temperature of the data center. For example, the cool climate in Minnesota can provide more than 300 days of natural cooling each year.
The average temperature and historical humidity data of the geographical location of the data center are related to the long-term cost analysis of the enterprise. Although cool climate is a positive factor, the humidity of the air (in cool climates) is also a positive factor.
(3) sufficient power resources are conducive to better development of data centers
As time goes on, millions of dollars of energy costs can be saved, which is competitive for the enterprise. Businesses need to look at the commercial and industrial electricity prices that are being considered, and directly cooperate with local power companies. Third party sources of electricity available for this nature are unreliable in terms of potential cost savings.
Many power companies offer special tariff rates and reserve power plans to data center customers. After negotiating prices, the price of electricity paid by the data center will be significantly lower than the average electricity charge.
Power outages are costly and reliable electricity is critical. Therefore, it is necessary to choose large and powerful power suppliers. But these power suppliers depend on their regional grids. Enterprises considering the construction of the region, but also to investigate the situation of regional power transmission operators.
Water cooling facilities in data centers are key to improving operational performance. Data center management needs to adopt a new model to minimize water use. Data center facilities require a large amount of water, which can meet the cooling demand in the peak period, and also extinguish the fire.
The data center industry is working to reduce this demand through other cooling technologies and to recycle water as much as possible. In some cases, reclaimed water can be used. But each site will have different water and quality options, and data center operators should assess the potential of vendors to provide water resources to maximize the use of water resources before discharge or evaporation.