Jackalopes and Cheap Datacenters: Sioux Falls, SD

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If you’re looking to run a datacenter on the cheap in 2006, Sioux Falls is the place to be.

Let me repeat that. Sioux Falls is the place to be. You really don’t get to say that often enough.

To our friends to the West, I send my congratulations, as yesterday Information Week published a report from The Boyd Co. citing Sioux Falls as the most affordable place in the United States to operate a datacenter. They based their ranking on various costs involved in operating a 125,000 foot datacenter with Sioux Falls, coming in just below $10 million in annual operating costs.

If you suddenly find yourself re-locating to Sioux Falls for a stint to set up your corporation’s new datacenter, here is what you can look forward to in the “Gateway to the Plains.”

1) Hunt Jackalope.
Licenses are sold at many gas stations and whoever catches the first one makes the record books. The jackalope is a mythical(?) creature resembling a rabbit with horns. They’re a distant relative to the sidehill gougers.

2) Drive up I90 to the famous Mitchell Corn Palace.
This auditorium is covered annually with painted corn kernels to become a palace of the heartland and is one of my favorite just-off-the-highway oddities. They actually use the auditorium regularly for basketball games and dances. Other potential road trips include Wall Drug, Sturgis and of course, The Faces of Mount Rushmore.

3) Falls Park.
Scenic city park where kids rollick and parents try to keep them from tumbling into the town’s namesake cascades while they play on the rocks.

4) Go to the Mall.
Teens aren’t the only mallrats in Sioux Falls. When the temperature dips below zero, you definitely don’t want to go for a walk outside. So take a spin around the Empire Mall.

5) Go to the Datacenter.
There’s really not that much more to do. Another benefit to this city: few distractions and focused employees.

I only joke because I’m also a fellow Midwesterner, albeit one from a metro area with several universities, professional sports teams, a theatre community, and yes, datacenters… (but no jackalopes or corn palaces – so let’s just call it a draw).

The Boyd report is another feather in Sioux Fall’s cap, as the city has already seen strong growth based on the banking industry’s interest in South Dakota’s lax regulations. There is practically no ceiling here on what financial firms can charge for credit. Citi Corp is headquartered here and already taking advantage of the low technology costs. It will be interesting to see if South Dakota becomes a data destination, and if that will translate to local job growth. We’ll have to check in next year.

(Shamless Plug) As those new datacenters demand IT hardware, Vibrant is just a step state away and can further reduce the infrastructure costs incurred with quality used servers, backup and networking equipment.

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