Huntsville among top cities to place data security center

Marian Accardi, The Huntsville Times

HUNTSVILLE, AL - Huntsville is ranked among the nation's top cities where financial services companies can place their data security operations, according to a study by a site-selection consultant.

The study, released this week by Princeton, N.J.-based The Boyd Co., found Huntsville to have the second-lowest annual cost - $11.38 million - for running a data security center. The report compared the costs of operating such a facility in 45 U.S. cities, including cities with the largest financial institutions like New York, Chicago, Charlotte, Boston and San Francisco and other metro areas that could meet certain site selection factors.

Another plus for Huntsville, said John Boyd Jr., a principal with the company, is that the University of Alabama in Huntsville houses one of Alabama's three National Centers of Academic Excellence in Information Assurance Education certified by the National Security Agency and the Homeland Security Department.

"That distinguishes Huntsville tremendously," Boyd said.

Alabama Gov. Bob Riley is a "pro-business governor," Boyd said, and "doesn't attempt to balance the state budget on the back of the business community disproportionately."

Financial services companies continue to seek data security space to handle disaster recovery and risk management, according to the report, and new government regulations add to companies' data security and storage needs.

"The result is more information will be stored and stored securely, so we'll see more data security centers," Boyd said. "Huntsville is on the radar screen and being looked at by a number of companies.

"The news is good for Huntsville."

The Boyd study looked at operating costs that are the most critical in a decision on locating free-standing data security facilities. The costs are for skilled labor, land and construction, taxes, utilities and corporate travel. Costs are based on a new 125,000-square-foot data center with 125 workers.

Annual operating costs in the study range from a high of $26.1 million in New York to a low of $10.9 million in Sioux Falls, S.D. Birmingham was ranked 11th on the list, with annual operating costs of almost $12.3 million.

The Boyd Co. provides independent location recommendations to major corporations, many of those in the banking and financial services field, including JP Morgan Chase and Visa International.

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