The part of this logical chain that I don’t follow is the low cost of living attracting companies. I can see why low cost of living ought to attract companies

The part of this logical chain that I don’t follow is the low cost of living attracting companies. I can see why low cost of living ought to attract companies but in practice the new companies seem to gravitate towards already high cost of living cities. This may be because the other considerations (workers, education, infrastructure etc) May outweigh low cost of living alone. Or there might be another reason I cannot think of.