InfoRelay Online Systems, Inc., a national hosting and colocation company, has recently completed an independent study on the best markets to host web applications and virtual platforms. We took into consideration the competitive landscape of hosting or colocation providers, quality of carrier neutral facilities, the level of Tier I carrier connectivity, the cost of real estate and power prices, and latency to popular parts of the United States. Our findings rank the top 4 markets in the United States to start a hosting business and reasons why they are good markets to host.
1. Northern Virginia Regions - Northern Virginia boasts dozens of carrier neutral facilities that includes the likes of top facilities providers such as Equinix, Switch and Data, Coresite, Terramark, Dupont Fabros, DRT, and other enterprise carrier neutral facilities operators. While the economy continues to remain unstable in much of the country, the Northern Virginia region remains in a state of constant economic growth and small to medium size business continues to expand. Power pricing is competitive to smaller markets as well such as Miami, Charlotte, Baltimore, Kansas City, and Philadelphia. The level of Tier I carrier connectivity is also extremely rich and is one of the largest peering points for internet traffic destined to Europe.
2. Los Angeles - While power pricing remains high in Los Angeles, the level of Tier I connectivity and the plethora of carrier neutral data centers is extremely robust. Los Angeles also remains an extremely competitive market place amongst data center and colocation providers throughout the county. Due to the dense real estate market, and lack of space to build exclusive data center facilities, many top tier facilities providers choose to sublease portions of high rise facilities. This also leads to a lack of custom amenities and custom built data center space. Los Angeles is also a major peering point for internet traffic destined to Asia and has a large peering base for major internet traffic exchange.
3. Chicago - Chicago remains the strongest market for web hosting in the midwestern United States. With a large variety of high quality data center providers and colocation companies, competition remains strong in Chicago. The Chicago hosting market has continued to grow despite tough economic conditions. Power and real estate pricing in Chicago is on the higher end compared to other midwestern metropolises, but remains the largest peering point for internet traffic in the region.
4. Dallas - Dallas has an extremely competitive carrier and facilities landscape that allows for some of the lowest colocation costs in the country. While the real estate market and power pricing is extremely low, the competitive nature of colocation companies in Dallas make it even more desirable. While the Tier I carrier presence in Dallas is good, the facilities and peering opportunities are less prevalent than in the ladder 3 markets and brings Dallas in at number 4.
Honorable Mentions
5. Seattle - Fair pricing, top tier facilities, good economy, good connectivity
6. Miami - good power pricing, large internet exchange point to South America, natural disasters
7. Charlotte - Good power pricing and real estate costs, poor Tier I availability, growing economy
8 New York City - Excellent connectivity and quality of facilities, astronomically expensive power and real estate pricing
1. Northern Virginia Regions - Northern Virginia boasts dozens of carrier neutral facilities that includes the likes of top facilities providers such as Equinix, Switch and Data, Coresite, Terramark, Dupont Fabros, DRT, and other enterprise carrier neutral facilities operators. While the economy continues to remain unstable in much of the country, the Northern Virginia region remains in a state of constant economic growth and small to medium size business continues to expand. Power pricing is competitive to smaller markets as well such as Miami, Charlotte, Baltimore, Kansas City, and Philadelphia. The level of Tier I carrier connectivity is also extremely rich and is one of the largest peering points for internet traffic destined to Europe.
2. Los Angeles - While power pricing remains high in Los Angeles, the level of Tier I connectivity and the plethora of carrier neutral data centers is extremely robust. Los Angeles also remains an extremely competitive market place amongst data center and colocation providers throughout the county. Due to the dense real estate market, and lack of space to build exclusive data center facilities, many top tier facilities providers choose to sublease portions of high rise facilities. This also leads to a lack of custom amenities and custom built data center space. Los Angeles is also a major peering point for internet traffic destined to Asia and has a large peering base for major internet traffic exchange.
3. Chicago - Chicago remains the strongest market for web hosting in the midwestern United States. With a large variety of high quality data center providers and colocation companies, competition remains strong in Chicago. The Chicago hosting market has continued to grow despite tough economic conditions. Power and real estate pricing in Chicago is on the higher end compared to other midwestern metropolises, but remains the largest peering point for internet traffic in the region.
4. Dallas - Dallas has an extremely competitive carrier and facilities landscape that allows for some of the lowest colocation costs in the country. While the real estate market and power pricing is extremely low, the competitive nature of colocation companies in Dallas make it even more desirable. While the Tier I carrier presence in Dallas is good, the facilities and peering opportunities are less prevalent than in the ladder 3 markets and brings Dallas in at number 4.
Honorable Mentions
5. Seattle - Fair pricing, top tier facilities, good economy, good connectivity
6. Miami - good power pricing, large internet exchange point to South America, natural disasters
7. Charlotte - Good power pricing and real estate costs, poor Tier I availability, growing economy
8 New York City - Excellent connectivity and quality of facilities, astronomically expensive power and real estate pricing
They report these are the places to be, but I'm fielding calls all the time from prospects wanting to move from there to somewhere less expensive. Money is a strong motivator to move. 
