Tips for Picking a Data Security Center Site

Study: Costs Vary Widely by City
Where's the best place to build a large healthcare data security center? A new study suggests Sioux Falls, S.D.

The Boyd Co. recently completed a study comparing the annual operating costs of a corporate healthcare data security center in 50 U.S. cities. The study determined annual costs range from a low of $17 million in Sioux Falls to a high of $32.7 million in New York.

For the study, the company assumed operation of a freestanding center that employs 150 in a 150,000-square-foot facility designed to meet the data security needs of a major healthcare corporation, such as an insurer, large healthcare provider or pharmaceutical company, says John Boyd Jr. a principal at the location consulting firm. Such centers also are built by companies that outsource security services to smaller healthcare organizations to help comply with HIPAA and other regulations.

In an interview, Boyd says:

  • Key cost factors measured include labor, utilities, construction and taxes;
  • Features of an ideal location include a local university with appropriate training programs and a good local business climate.

The report is available by request through the Boyd Co. website.

The Boyd Co., based in Princeton, N.J., provides independent site selection counseling to corporations in healthcare and other sectors. Boyd founded the firm's unit, which provides industry-specific cost data.

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