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Data Centers in Central Jersey

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Central Jersey – Strategic NYC & Philly Proximity

Executive Summary

Central Jersey is a key colocation market for enterprises requiring low-latency connectivity to both the New York City and Philadelphia metropolitan areas. Its strategic position offers a compelling disaster recovery and production alternative, balancing proximity to major financial hubs and population centers with more favorable operating economics. This market is ideal for businesses that need resilient infrastructure outside of primary urban cores while maintaining high-performance access.

Central Jersey: At A Glance

FactorRating / DataNotes
Global Connectivity GradeAExcellent fiber density along major Northeast corridor routes.
Direct Cloud On-Ramps0 — as of September 2025Nearest hubs are in NYC and Philadelphia, accessible via private network extensions.
Power Cost$0.11 – $0.14/kWhCompetitive pricing for the Northeast region, offering savings over primary metro rates.
Disaster RiskHigh (NRI Score: 75.31)Primary risks include hurricane, winter storm, and various forms of flooding.
Tax IncentivesYesState tax credits are available for capital investment and new job creation.
Sales Tax6.63% (New Jersey Sales Tax)The standard state sales tax rate applies to qualifying equipment purchases.

Network & Connectivity Ecosystem

Central Jersey's connectivity is defined by its strategic location between two of the nation's most important network hubs, New York City and Philadelphia. This provides excellent path diversity and carrier choice for production and disaster recovery workloads.

Carrier Density & Carrier Neutrality: The market features over 25 unique network providers as of September 2025, with a healthy mix of carrier-neutral facilities. This ensures competitive pricing and resilient connectivity options for enterprise customers.

Direct Cloud On-Ramps: There are no public cloud on-ramps located directly in Central Jersey as of September 2025. However, dedicated and private network connections offer low-latency access to all major cloud providers, including AWS, Google Cloud (GCP), and Microsoft Azure, via their regions in nearby Ashburn, VA, and network PoPs in the NYC metro area.

Internet Exchange Points (IXPs): Public peering is not a focus of this market. Most interconnection is handled privately between carriers or routed through the major internet exchanges in New York City, such as DE-CIX New York and NYIIX.

Bare Metal: Bare metal server options are readily available from providers in the area. Deployments can be sourced from national providers like Hivelocity and ColoCrossing, who service the broader New Jersey market.

Power Analysis

Power infrastructure in Central Jersey is reliable and offers a cost advantage compared to the adjacent primary markets.

Average Cost Of Power: Industrial power rates typically range from $0.11 to $0.14/kWh as of September 2025. This pricing presents a significant operational expense saving compared to data center operations within New York City.

Power Grid Reliability: The electrical grid is well-engineered to support the dense commercial and suburban landscape. Major data center facilities are often supported by redundant substations and resilient transmission paths, ensuring high levels of uptime.

Market Access, Business & Tax Climate

Central Jersey provides a balanced environment that combines access to major economic zones with state-level business incentives.

Proximity To Key Business Districts: Data centers in this market provide low-latency connectivity to Manhattan's financial district, Northern New Jersey's pharmaceutical corridor, and Philadelphia's commercial center. This makes it a prime location for disaster recovery and secondary production sites.

Regional Market Reach: The region effectively serves the massive and affluent consumer and business population spanning from Southern Connecticut through New Jersey and into Delaware and Eastern Pennsylvania.

Tax Advantage For Data Centers: New Jersey offers tax incentives that can reduce the financial burden of large-scale deployments. The state provides tax credits tied directly to significant capital investments and the creation of new full-time jobs, helping to lower the total cost of ownership.

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 risk is elevated compared to the national average, it is driven by specific, well-understood hazards common to the Mid-Atlantic region.

Key risks include hurricanes, severe winter storms, riverine flooding, and strong winds. Data center operators in the region mitigate these risks through hardened building construction, sophisticated weather monitoring, and robust backup power and cooling infrastructure. The earthquake and tornado risks are considered low.

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