Originally Posted by iptelligent
The higher priced locations you mentioned are where the main internet exchanges are. The cheaper ones (like Scranton, PA) normally need to backhaul from one of these locations to their one, adding some latency in terms of bandwidth as well as not having such an availability of a carrier mix.
There must be other factors too, rent, power and competition being the other three I can think of.
The big DCs from google, amazon and such seem to be very close to a major power source (like <1KM) which typically have the added benefit of being cheap land to build on.
The cost of living could also have an impact - a DC is new york is going to have to pay higher salaries than one in Scranton - I would assume.
I have no clue what the cost breakdown is, but you'd assume rent, salaries, power and connectivity are all big parts of the pie which vary widely from one location to another.