Thank you for posting your question!
I think there a variety of different ways you could approach answering this question! A major one is that there can be substantial infrastructure and development costs at the intermediate location. Things like acquiring land, establishing utility connections, and building roads, which can lead to large upfront costs.
You could also explore things like suboptimal resource access and losing the agglomeration benefits that go with being located in a large, diverse city.
I hope that gets you moving in the right direction on this question! Feel free to reach out via message if you have any additional questions beyond that! :)