Why do cloud providers keep building datacenters in the America’s hottest city?

Google and Microsoft are building datacenters in Phoenix, Arizona, despite the city’s extreme heat and drought conditions. Analyst Alan Howard explains that several factors make the region appealing for datacenter construction. The availability of cheap land, tax incentives, and competitive power prices contribute to the economic viability of the projects. Phoenix’s power comes from a mix of nuclear and sustainable sources, and the region has a dense fiber network for connectivity. However, the scarcity of water poses a challenge for datacenters, which typically use evaporative coolers. Microsoft has opted for a more water-conscious cooling method, and Google’s new datacenter will not rely on evaporative coolers at all.

https://www.theregister.com/2023/07/15/cloud_datacenters_desert/

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