Data Centers in North Jersey
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North Jersey – Low-Latency Gateway to NYC & Financial Markets
Executive Summary
North Jersey is the strategic data center market for any business requiring low-latency access to New York City's financial, media, and enterprise ecosystems. Its location provides a high-performance, lower-cost alternative to Manhattan, directly impacting application speed and reducing operational risk for latency-sensitive workloads. This market is built for uptime and speed, connecting the world's most critical industries.
North Jersey: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong connectivity, serving the massive New York City metropolitan area. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Direct access is available via private extension to nearby New York City hubs. |
| Power Cost | $0.12 – $0.15/kWh – as of September 2025 | Competitive for the Northeast, offering a cost advantage over Manhattan. |
| Disaster Risk | High (NRI Score: 75.31) – as of September 2025 | Primary risks include hurricanes, strong winds, and severe winter storms. |
| Tax Incentives | Yes – as of September 2025 | State programs exist for capital investment and job creation (e.g., Next NJ AI program). |
| Sales Tax | 6.63% (State Sales Tax) – as of September 2025 | Applies to equipment purchases; exemptions for some services may exist. |
Network & Connectivity Ecosystem
North Jersey is one of the most important connectivity markets in North America, functioning as the primary network gateway for the New York metropolitan area.
Carrier Density & Carrier Neutrality The region features a dense and diverse ecosystem, with access to over 100 unique network carriers in its key data center facilities, as of September 2025. This ensures competitive pricing and resilient network design options.
Direct Cloud On-Ramps As of September 2025, there are no public cloud on-ramps located directly within North Jersey's colocation facilities. However, the market is a critical access point to the rich cloud ecosystem in New York City. Secure, private connections to all major clouds, including AWS, Google Cloud (GCP), and Microsoft Azure, are readily established via low-latency fiber routes.
Internet Exchange Points (IXPs) While most large-scale peering occurs privately, the North Jersey market relies on the major public exchanges in New York City, like DE-CIX New York and NYIIX. These IXPs are easily reachable and central to the region's internet health.
Bare Metal Bare metal server options are widely available from multiple providers in the area. Companies like Hivelocity offer dedicated compute for workloads demanding maximum performance and control.
Power Analysis
Average Cost Of Power Industrial power pricing in North Jersey typically ranges from $0.12 – $0.15/kWh, as of September 2025. This rate is competitive for the US Northeast corridor and presents a notable cost saving compared to operating in central New York City.
Power Grid Reliability The power grid supporting North Jersey's data center hubs is well-engineered and robust. Major facilities are fed by multiple substations, providing the redundant power infrastructure required to support mission-critical operations and high-availability service level agreements.
Market Access, Business & Tax Climate
Proximity To Key Business Districts North Jersey data centers provide single-digit millisecond latency to Manhattan. This makes the market essential for financial trading, ad-tech, content delivery, and any enterprise requiring immediate access to East Coast business hubs.
Regional Market Reach From North Jersey, organizations can effectively serve the entire tri-state area of New York, New Jersey, and Connecticut. This represents a consumer and business market of over 20 million people.
Tax Advantage For Data Centers New Jersey provides state-level tax credits based on significant capital investment and the creation of new, full-time jobs. These incentives are designed to lower the total cost of ownership for large-scale deployments and attract technology investment.
Natural Disaster Risk
North Jersey has a High natural disaster risk profile, with a FEMA National Risk Index score of 75.31, as of September 2025. For data center operators, the primary environmental threats are hurricane-related events, including strong winds and potential for riverine flooding in certain areas. Other significant risks include severe winter weather, ice storms, heat waves, and lightning.
