I'm admittedly biased on this one. Consider the following:

* Low cost of living (housing ~33% of Bay Area) * Extremely low crime rate * Beautiful outdoors. Mountains, streams, heavily forested,... * Easy access to high bandwidth internet * Same timezone (or 1-2 hours) to all US Customers * Small but high-quality dev & University communities * Frighteningly devoted local & state infrastructure * English as the main language * No visa restrictions * No international plane ticket expenses

Here's the kicker. It's West Virginia.