It's no secret that the NYSE Euronext, Nasdaq OMX and other big exchange firms are betting their futures on massive data centers (data center news), many out in New Jersey. These data centers are essentially the markets of the future. But are these monolithic data centers worth it?

Ronald H. Bowman Jr., author and executive vice president of Tishman Technologies, which builds data centers for the likes of Morgan Stanley (NYSE: MS), offers an interesting alternative vision that would potentially lower costs significantly. The biggest costs of any data center are energy and sales taxes. The costs of these items tend to vary widely. Costs are high in New Jersey and much lower out in Arizona. So why not split your center?

Bowman offered an example at a recent conference, noted by Securities Industry News. He says the only part of a Wall Street trading and investment operations that need to be in New Jersey or in facilities where closeness matters are the day-trading and high-frequency trading. That amounts to about 10 percent of the total data center. The other 90 percent can be located elsewhere, where costs are lower.

He also thinks data centers in New Jersey have some safety issues. One projected center was near a natural gas depot and railway where there was a recent explosion. So where would the ideal venue be for the 90 percent of the data center that doesn't require closeness? He suggests Iceland, where cooling costs would be low and is strategically located. North Carolina also makes sense, as do several Western states. 

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