Data Centers in New York

New York – Global Financial & Interconnection Hub

Executive Summary

The New York metropolitan area is one of the world's most critical data center markets, built to serve the extreme low-latency demands of global finance, media, and enterprise networks. This region provides unparalleled access to transatlantic subsea cables, dense carrier interconnection, and direct pathways to major cloud providers. Locating here ensures maximum application performance and reach into North American and European markets.

New York: At A Glance

Network & Connectivity Ecosystem

The New York/New Jersey market offers one of the deepest and most diverse connectivity ecosystems on the planet. Its status as a global business capital has created a massive gravitational pull for networks, service providers, and content platforms.

Carrier Density & Carrier Neutrality: With over 60 unique network providers, as of September 2025, the region offers immense choice. Carrier-neutral facilities provide competitive pricing and redundant connectivity options to virtually any destination.

Direct Cloud On-Ramps: The market features over 3 dedicated cloud on-ramps, enabling high-performance, private access to 13 cloud regions, as of September 2025. Direct connectivity is available to AWS, Google Cloud (GCP), Microsoft Azure, and IBM Cloud, allowing for secure and stable hybrid cloud architectures.

Internet Exchange Points (IXPs): Major exchanges like DE-CIX New York and NYIIX are central to the ecosystem. These IXPs facilitate efficient, low-cost traffic exchange between hundreds of networks, improving performance and reducing transit costs.

Bare Metal: On-demand bare metal servers are readily available from multiple providers. Companies like Hivelocity and phoenixNAP offer dedicated compute for performance-sensitive workloads that require direct hardware access.

Power Analysis

Average Cost Of Power: Expect industrial electricity rates between $0.12 and $0.16 per kWh, as of September 2025. These costs are higher than the U.S. average and are a significant factor in total operational cost calculations for large-scale deployments.

Power Grid Reliability: The power grid supporting major data center clusters, particularly in New Jersey, is well-engineered for high availability. Facilities benefit from redundant utility feeds and multi-substation support, reflecting the critical infrastructure demands of the financial sector.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Northern New Jersey are strategically located to serve Manhattan's financial district (Wall Street) and technology sector. This proximity provides the ultra-low latency, measured in microseconds, that is essential for algorithmic trading and digital advertising exchanges.

Regional Market Reach: The market is the primary digital gateway to the Northeast megalopolis, an economic corridor with over 50 million people. It provides effective reach for content delivery and application services targeting a massive and affluent consumer base.

Tax Advantage For Data Centers: New Jersey offers state-level tax credits connected to significant capital investment and the creation of new jobs. This incentive program can meaningfully reduce the total cost of ownership for large-scale data center projects, making the state more financially attractive for major builds.

Natural Disaster Risk

The New York metropolitan area has a High natural disaster risk profile, with a FEMA National Risk Index score of 75.31, as of September 2025. While data centers in the region are engineered for resilience, risk assessment is critical.

The primary environmental threats include hurricanes, winter weather including ice storms, strong winds, and riverine flooding. Site selection should prioritize locations outside of flood plains and include robust facility designs to mitigate the impact of severe storm systems.