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New Site Selection Report Ranks Quincy, Washington As One Of The Lowest Cost And Most Affordable Markets For Cloud Computing And Data Centers

QUINCY, Wash., Jan. 11, 2016 /PRNewswire/ — According to a new research and site selection report from commercial real estate services firm CBRE on cost effective locations for cloud computing and data centers, Quincy, Washington ranks as the lowest cost market for power in the United States and is one of the most attractive locations in the country to build and operate a data center.

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Over the past few years, several major cloud computing and high tech companies have located in the Quincy, WA area, including Dell, Intuit, Microsoft, Sabey Corporation, Vantage Data Centers, and Yahoo!

The report specifically states that, "In Quincy, electric power is supplied by two hydroelectric dams that produce renewable power at a highly competitive rate.  Increasingly, data center clients are evaluating the power source along with the cost of power. Thus, the low cost of power and its renewable source make Quincy an attractive market for users…"

The report by CBRE also states that Quincy has a low "net tax burden as a share of total project cost," and low "land costs as a share of total project cost."

Additionally, the report indicates that a typical 5 megawatt (MW) enterprise data center project in the U.S. costs $270.1 million over a 10-year period.  However, locating a data center in a low-cost location such as Quincy could result in potential savings of up to $140.9 million to site-selection savvy users.

According to CBRE, markets with the highest costs are: Silicon Valley, San Antonio, Texas, Boston, Chicago and Minneapolis. The cost to build and operate an enterprise data center in these markets typically ranges from $276.6 million to $368.4 million.

Furthermore, the report says that data centers can be located anywhere where there are strong power and data connections; however, investors and owners who are building one-user "enterprise" data centers are being drawn to rural locations such as Quincy, Washington where land is inexpensive and the area is low risk (meaning that natural disasters rarely occur), and where development or tax incentives and low power prices can be found.

Overall, Quincy has many strong attributes and infrastructure for high-tech cloud computing companies, such as:

  • Plentiful low-cost renewable hydroelectric power.
  • High-voltage and redundant electric transmission lines.
  • Attractive tax incentives for data centers.
  • Very low risk of natural disaster or service interruption.
  • High-capacity and redundant dark fiber.
  • Efficient permitting and zoning.
  • An approved foreign trade zone ideal for server assembly and high-tech manufacturing.
  • An industrial water treatment system designed specifically for data centers.
  • Nearby commercial air service.
  • A skilled workforce.
  • Close to several colleges and universities.

According to Dan Peterson, a data center expert with real estate services firm Colliers International, "Tax incentives and cost of power can drive site selection as much as network and geographic risk mitigation.  Look at Quincy, Washington and Des Moines, Iowa.  Both were put on the map this way."

Pat Lynch, managing director of data center solutions at CBRE, says those two cities (Quincy and Des Moines) are included in the top five inexpensive markets for data centers in the country and prices to build and operate data centers in these markets typically range from $227.5 million to $248.3 million.

In conclusion, Quincy, Washington is a premiere low-cost location for cloud computing and high-tech businesses.

For more information, please contact Curt Morris or Patrick Boss of the Port of Quincy at Email or 509-214-7696.

About Port of Quincy

Located in the center of Washington State near the Columbia River, the Port of Quincy is ranked as one of the top low-cost rural locations in the United States for business and economic development with a full array of infrastructure including: plentiful low-cost hydropower electricity, high-capacity bandwidth dark fiber, an abundant supply of irrigation water, a major interstate freeway (I-90), a large capacity water treatment system, an ample supply of natural gas, a skilled workforce, approved foreign trade zone status, relatively inexpensive industrial and commercial properties, nearby commercial air service, a key cross-country rail mainline (from Seattle to Chicago), a modern rail intermodal terminal, and a central location in the heart of Washington State's most productive irrigated agricultural region. The Port of Quincy has premier sites for food processing and food manufacturing companies, warehousing and distribution companies, high-tech companies and data centers, etc.  At the Port of Quincy major fresh produce and food processing & distribution companies such as ConAgra Foods (Lamb Weston), National Frozen Foods, NORPAC, Amway-Nutrilite, Simplot, Oneonta, Stemilt, CMI, Double Diamond, Jones Produce, Lineage Logistics, etc. find themselves next to technology companies like Dell, Intuit, Microsoft, Sabey, Vantage and Yahoo!.