Great idea. I'd actually submit Rochester, NY as a candidate (I'm from there, but live in Seattle now). The property taxes are high, but the cost of living is very low, power is very cheap, land is cheap and there is RIT and University of Rochester right there pumping out fantastic engineers (an hour away is University of Buffalo, not quite as good, but has a few gems). I know a few people doing startups there (it's tough because of funding, but these guys self fund). It's also not too far from Boston / NYC if you needed to grab people from there.