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Originally Posted by RFPCME
The new NSA data-storage facility at Camp Williams is intriguing...from two perspectives:
Why Utah????
What will be the economic impact????
The "Why Utah?" question is tough to answer. Power is not particularly cheap in Utah (but not horribly expensive either), so cheap power is not the reason for choosing Utah.
The facility must be extremely secure, yet accessible, and the Camp Williams location does have some obvious advantages in terms of security and accessibility.
Normally I might argue any high-tech facility (and the data-storage center is certainly high-tech) locating in Utah is partially doing so because of the access to top-flight universities, hence access to top-flight technical talent. While NSA is possibly the most high-tech of any Government agency, this center is data-storage, which is not particularly high-tech, unless the center personnel would write data query algorithms and the like. But I don't think that is the case. It seems the personnel would primarily be maintenance and support technicians.
You could also argue that great linguistic talent in Utah could come into play. I could see that if the center produced search queries. But again, I don't think that is the case.
So why Utah? Maybe someone has some better ideas than I do.
What will be the economic impact...beyond the massive construction effort?
When the Air Force was considering Hill AFB as a potential location for the Air Force's Cyber Command, we estimated that for every Government job at the base, there would be 10 contractor jobs, which is twice the normal impact. But I don't think that is the case here. At Hill, the Cyber Command would demand enormous engineering talent. I suspect the engineering demand for the data center will be far less. Maybe someone else with more experience in massive data storage centers will have better ideas about the number of non-Government personnel necessary to support the center.
Let's hope there will be activity beyond purely maintenance and support. If there is, then the impact will be huge. The kind of work to be done at the center is the highest of the high-tech, pushing the limits of artificial intelligence.
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I disagree will your analysis that Utah doesn't have cheap energy. According to the Energy Information Administration Utah has close to the cheapest costs for electricity in the country. If you pay residential rates it is 9.11 cents per kwh. Commerical is 7.5 per kwh and industrial is 5.47 a kwh. That is far less than the US average. The NSA has publicly stated that Utah's cheap energy was a factor in the decision.
Further, they seemed to like the fact that Camp Williams has two major transmission lines intersecting there. This would give a lot of stability to the supply of energy.
As far as the economic impact, that is harder to pin down because of how secretive the agency is about its purpose. The easy part in analyzing impact would be the thousands of temporary construction jobs and the hundreds of permanent, very high paying, jobs. That money flowing into the economy then is largely spent at Utah businesses and has a multiplier effect. Where it gets difficult is if they will use Utah resources to supply equipment etc.
There are then a lot of intangibles such as prestige, exposure, slowing brain drain, and technology synergy.
I am extremely bullish about this data center and how it will compliment what momentum Utah already has.