There's at least one large tech company that has located themselves totally outside the typical tech hubs - Epic Systems, in Madison. I interviewed for them after graduation but ended up taking a job at Facebook in Seattle.

The offer was for half my current salary. They tried to argue that with the cost of living adjustment I could buy a house, but what 22-year-old wants to buy a house? Locating in Madison is kind of a physical manifestation of their business strategy - avoid any competition, pay sub-market rates and issue strict, possibly non-enforceable non-compete clauses.

It works for people who really want to live in the Midwest. I think there's a spectrum between "live to work" and "work to live", and I think most ambitious college grads actually want many opportunities, for a while at least.