When you think of data centers, bustling cities and suburbs probably come to mind. But according to Ryan Beebout, VP (West) of Sabey Data Centers, a leading US-based provider of colocation, powered shell, and build-to-suit data centers, it’s the smaller, often overlooked rural towns that offer some of the biggest opportunities. With populations typically ranging from 5,000 to 15,000, these rural areas, often surrounded by farmland and connected by highways, offer an ideal setting for data center development.

Site selection: Go where the power is

A key factor driving data centers to these locations is the availability of power. Over the past couple of decades, power demand has surged, driven by the needs of large cloud providers and enterprises of all sizes. At the same time, proximity to population centers has become less important for many workloads. As power needs have increased, rural areas, with their access to abundant energy and available land, have become increasingly attractive for data center expansion.

Sabey’s own experience exemplifies this shift. Over a decade ago, they started with a modest 10-megawatt facility in Quincy, Washington. Fast forward to today, they’re building a 150-megawatt site in Umatilla, Oregon. This stark increase in power requirements reflects the appeal of rural locations with abundant energy resources.

When Sabey scouts new locations, their checklist includes six essential factors. Beebout breaks it down:

1. Availability of power

“The primary reason we selected Umatilla, a small rural area, is its proximity to the Columbia River, which supports one of the most productive hydropower sources in the region. Eastern Washington and Oregon, in particular, benefit from numerous hydroelectric dams, providing stable and renewable energy. For data centers, a consistent and robust power supply is essential, making these regions ideal for our facilities.”

2. Access to renewables

“The growing emphasis on sustainability makes access to renewable energy a priority for both providers and customers. Hydropower, supplemented by solar and wind energy, combined with battery storage systems, is available at our Umatilla and Quincy sites. These renewable sources not only support our energy needs but also align with our commitment to environmental responsibility, which is increasingly important to our clients.”

3. Fiber connectivity

“You can’t have a data center unless it’s connected to the outside world, so you have to have access to fiber. Major fiber routes typically follow transportation corridors like highways and railroads, connecting cities and smaller regions. In towns like Umatilla, Quincy, and other potential sites, either existing fiber infrastructure is strong, or the region has the potential for fiber expansion, ensuring high-speed connectivity for data flow and operations.”

4. Tax incentives

Our customers favor locations where tax policies lower the total cost of ownership. For instance, Oregon’s lack of state sales tax provides substantial savings on server equipment, reducing capital expenditures and making the region highly attractive for data center development.”

5. Low natural disaster risk

“Minimizing natural disaster risk is critical for ensuring uptime and reliability. Rural areas in eastern Washington and Oregon offer a favorable environment, with low risks of earthquakes and wildfires due to their geographic location east of the Cascade Mountains. Although these areas can experience extreme weather, such as summer heatwaves or winter cold snaps, the overall risk profile remains much lower than in more disaster-prone regions.”

6. Community and stakeholder support

“A successful data center not only relies on infrastructure but also on strong community and stakeholder relationships. Umatilla and Quincy are shining examples of that – local authorities and communities are enthusiastic about welcoming data centers because of the economic benefits they bring, including property taxes, new jobs, and infrastructure improvements. We prioritize building where we are genuinely wanted, creating partnerships based on respect, mutual trust, and ethical business practices – that’s everything.”

Designing for space, efficiency, and sustainability

Over the course of our conversation, we uncover that rural settings don’t just offer energy and land – they offer room for smart design.

Rural areas with more land available for purchase allow for the construction of single-story facilities, unlike the multi-story designs often required in cramped urban areas. Beebout notes:

“It is less expensive to build across one level, and the design simplifies operations by eliminating the need for elevators and staircases, which can enhance both functionality and customer satisfaction.”

This extra land also enables Sabey to incorporate large-scale renewable energy solutions. Beebout explains:

“At our planned North Texas site, we will install solar panels at scale to help us move toward a net-zero carbon footprint. Once operational, the facility will remain connected to the grid, but the extensive solar infrastructure will generate enough energy to feed back into it, reducing both operational costs and environmental impact.”

Overcoming challenges in rural development

After meeting Sabey’s six criteria for site selection, what challenges remain?

While utilities and local authorities may be supportive, a subset of the local population may express concerns or opposition to new developments. This resistance often stems from misconceptions or misinformation about data centers – what they do, their environmental impact, or how they fit into the community.

To address this, Beebout stresses the importance of proactive engagement within the community and educational outreach:

“In smaller towns, you’re much more visible and impactful, so building and operating is a big deal. It’s important to be transparent and prepared to answer community questions. By communicating the value and purpose of data centers, we can dispel myths and foster understanding of their benefits.”

Building a local workforce

One of the misconceptions is that rural areas lack skilled labor for data centers. However, Sabey’s experience says otherwise, even in the absence of formal data center training programs. Beebout notes:

“In places like Quincy, where we’ve operated for over a decade, we’ve successfully hired locally, even before specialized training programs existed. Over time, collaboration between data centers and local educators has led to the development of tailored programs. For instance, Quincy High School now offers a data center certification program, preparing students for entry-level positions right out of school through the Data Center Technician Career launch program, opening doors for Quincy’s youth in sought-after IT careers.”

The conversation leaves a strong impression that by offering facility tours, job shadowing, mock interviews, and internships, data centers can help educators design curricula that align with industry needs. This model demonstrates how data centers can partner with educational institutions to shape the future workforce:

“Data centers also tap into young people’s growing interest in technology – whether it’s AI, gaming, or internet services – creating career paths in fields that excite and engage them.”

Collaboration and community engagement

Throughout the interview, Beebout maintains that long-term collaboration and community engagement are foundational to Sabey’s rural projects. By inviting local leaders, educators, and students to tour data center facilities, Sabey hopes to foster a sense of inclusion and trust within the community.

Collaboration is equally essential. Sabey works closely with trusted design, build and service partners, including HVAC, electrical, and security firms, to ensure that data center operations are well-supported in rural areas. In addition, technology alliances – focused on workforce development, technology initiatives, and community outreach – help drive the success of these projects. It seems these partnerships are crucial to Sabey’s success, enabling them to meet both their operational and community-driven goals.

Sabey’s approach to rural data center development serves as a potential blueprint for success. By prioritizing power availability, sustainability, and community engagement, they continue to contribute to the growth of technological infrastructure in smaller towns – one rural data center at a time.

Learn more about SDC Umatilla here.