Data Centers in Central Jersey

Central Jersey – Low-Latency Hub for the Northeast Corridor

Executive Summary

Central Jersey is a critical data center market for enterprises requiring low-latency connectivity to both New York City and Philadelphia financial hubs without the premium costs. Its strategic location offers a compelling balance of network density, regional access, and a diverse inventory of colocation facilities. This market is ideal for disaster recovery, secondary production sites, and latency-sensitive applications serving the greater Northeast metropolitan area.

Central Jersey: At A Glance

Network & Connectivity Ecosystem

Central Jersey functions as a key connectivity node, benefiting from the immense fiber infrastructure running along the Eastern Seaboard. The market provides resilient, low-latency paths to major peering and financial exchanges.

Carrier Density & Carrier Neutrality: With over 25 unique network providers present, as of September 2025, the market offers strong carrier diversity. Customers have ample choice for creating redundant network architectures in carrier-neutral facilities.

Direct Cloud On-Ramps: There are no public cloud on-ramps located directly within Central Jersey, as of September 2025. Secure, high-performance access to all major cloud providers, including AWS, Google Cloud (GCP), and Microsoft Azure, is achieved through private network connections to primary hubs in Northern New Jersey and New York City.

Internet Exchange Points (IXPs): Public peering is not a primary feature of this market. Most interconnection is handled via private peering within data centers or by connecting to the major Internet Exchanges in the New York City metro, ensuring efficient traffic exchange.

Bare Metal: Bare metal server options are readily available from multiple providers. Operators like Hivelocity and phoenixNAP offer dedicated server solutions for workloads requiring direct hardware control.

Power Analysis

Average Cost Of Power: Industrial electricity rates are estimated between $0.13 and $0.15 per kWh, as of September 2025. These costs are competitive for the region and can offer significant savings compared to operations inside New York City.

Power Grid Reliability: The power grid supporting Central Jersey's data center corridors is well-engineered and benefits from significant investment. Facilities typically receive power from multiple substations, and providers build extensive on-site N+1 or 2N redundant power systems to ensure high levels of uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: The market’s primary advantage is its location midway between the New York City and Philadelphia metropolitan areas. This provides low single-digit millisecond latency to Wall Street and other key financial, pharmaceutical, and enterprise districts.

Regional Market Reach: From Central Jersey, businesses can effectively serve a population of over 20 million people across New Jersey, New York, Pennsylvania, and Connecticut. This makes it a strategic location for content delivery and application hosting targeting the Northeast Corridor.

Tax Advantage For Data Centers: New Jersey offers a tax credit program tied to capital investment and the creation of new full-time jobs, which can reduce the total cost of ownership. This incentive helps attract technology-focused projects by offsetting initial build-out and operational expenses.

Natural Disaster Risk

Central Jersey has a high natural disaster risk profile, with a FEMA National Risk Index score of 75.31, as of September 2025. While the overall score is elevated, the primary threats are well-understood and can be mitigated with modern data center engineering and operational planning.

Key environmental risks for infrastructure planning include hurricanes, winter weather, strong winds, riverine flooding, and heat waves. Data center operators in the region have extensive experience hardening facilities against these specific threats.