Just about all of the energy in the region is hydroelectric, with two companies—FortisBC and BCHydro—pulling power from a series of dams along the Columbia River (yes, the same Columbia that empties near Astoria, Ore., starts in the Kootenay Rockies region and eventually runs near the Okanagan, too).

While this energy is cheaper than traditional alternatives such as coal or oil—hydro power can be as low as 2 cents per kilowatt hour, compared to as much as 20 cents per kilowatt hour for other means —it's also "greener," meaning the process does not rely on renewable resources at all.

Furthermore, David Tarasenko, president and chief executive of IronDiamond, says that by virtualizing certain accounts, data storage providers can cut back on energy use by as much as 50 percent.

"As the environment becomes a bigger issue, green IT is going to become a huge consideration for companies looking to store data offsite," he predicts. "Here in the Okanagan, we can provide that."

IT Labor Supply

A third and final reason data storage companies have flourished in the Okanagan is that the area is home to a young and talented workforce of IT professionals to keep things going.

Local high-tech companies such as Club Penguin, which was recently sold to Disney for roughly $365 million, are always bringing in workers from big cities like Vancouver and Calgary. The relatively new University of British Columbia at Okanagan also has a computer science program (14 graduates in 2007).

All told, the triumvirate of stability, power and smart people create a perfect atmosphere for data storage in the beautiful Okanagan Valley. The local economic development director jokes that if this high-tech boom continues, the region might just have to build a marketing campaign around its new data center and IT.

"We used to call the area 'Silicon Vineyard' because we felt the nickname perfectly captured the Okanagan's mixture of natural beauty and high-tech," he says. "We haven't used it in a while, but who knows? It's never too late to bring it back."