Data Centers in New York

New York – The World's Connectivity Hub

The New York and New Jersey metro is the premier data center market for any business that requires low-latency access to global financial markets, media exchanges, and transatlantic network routes. Its unmatched density of carriers, cloud providers, and interconnection options provides a critical advantage for applications where speed and uptime directly impact revenue. For global enterprises, this market is not just a choice; it is the default standard for North American digital operations.

New York: At A Glance

Network & Connectivity Ecosystem

The New York metro area has one of the deepest and most diverse connectivity ecosystems on the planet. This is the nexus for transatlantic cables and the primary peering point for the U.S. East Coast, making it a required location for latency-sensitive international business.

Carrier Density & Carrier Neutrality With over 60 unique network providers, as of September 2025, the market offers exceptional choice. Businesses can connect with nearly any carrier imaginable, ensuring competitive pricing and creating resilient, multi-carrier network architectures without being locked into a single provider.

Direct Cloud On-Ramps Private, high-speed access to major cloud platforms is readily available from numerous facilities. With over 3 dedicated on-ramps enabling access to 13 cloud regions, as of September 2025, you can establish secure, reliable connections to:

• AWS
• Google Cloud (GCP)
• Microsoft Azure
• IBM Cloud

Internet Exchange Points (IXPs) The region is home to several major global internet exchanges, including DE-CIX New York and NYIIX. These IXPs allow networks to exchange traffic directly, reducing latency and improving performance for end-users across the globe.

Bare Metal Bare metal server providers are widely available throughout the New York and New Jersey market. Companies like Hivelocity and ColoCrossing offer dedicated server solutions for workloads that require maximum performance and control.

Power Analysis

Average Cost Of Power Industrial power costs in the New York metro area typically range from $0.12 to $0.16 per kWh, as of September 2025. While higher than in some other U.S. markets, these costs are a trade-off for the unparalleled connectivity and business access the region provides.

Power Grid Reliability The power grid serving the primary data center corridors in Northern New Jersey is well-engineered and highly reliable. Major facilities are supported by redundant utility feeds from multiple substations, ensuring high levels of uptime for mission-critical operations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers, primarily located in Northern New Jersey hubs like Secaucus and Piscataway, offer low-latency connectivity to Manhattan’s financial district. This proximity is essential for financial services firms, high-frequency trading platforms, and media companies that depend on sub-millisecond data transmission.

Regional Market Reach An infrastructure footprint here provides direct access to over 20 million people in the New York metropolitan area. It also serves as an ideal hub for reaching the entire Northeast corridor, from Boston to Washington D.C., one of the most economically significant regions in the world.

Tax Advantage For Data Centers New Jersey offers a general state tax credit that can benefit data center operators and tenants. This incentive, tied to significant capital investment and the creation of new full-time jobs, helps lower the total cost of ownership for large-scale deployments.

Natural Disaster Risk

The New York and New Jersey 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 are built to withstand these threats, operators must plan for specific, recurring regional hazards.

Key environmental risks include:

• Hurricane: Coastal proximity creates risk from high winds, storm surge, and widespread power outages.
• Riverine Flooding: Heavy rainfall can cause flooding in low-lying areas.
• Winter Weather: Severe ice storms and blizzards can disrupt transportation and strain the power grid.
• Strong Wind: High wind events, both from hurricanes and other severe storms, are a considerable risk.
• Heat Wave: Extreme heat can stress cooling systems and the electrical grid.