Data Centers in North Jersey

North Jersey – Low-Latency Gateway to NYC & Global Finance

Executive Summary

North Jersey is one of the most important data center markets in the United States, serving as the primary colocation and disaster recovery hub for New York City's financial, media, and enterprise sectors. It offers robust, lower-cost infrastructure with exceptionally low latency to Manhattan, making it the ideal location for businesses that require high performance and uptime without the premium of a Wall Street address. This market provides a critical balance of connectivity, power, and regional access.

North Jersey: At A Glance

Network & Connectivity Ecosystem

North Jersey's network ecosystem is mature and dense, built to support the massive data requirements of the New York City metropolitan area.

Carrier Density & Carrier Neutrality The market features excellent carrier diversity, with access to over 150 unique network service providers across its many carrier-neutral facilities, as of September 2025. This ensures competitive pricing and resilient connectivity options for any enterprise.

Direct Cloud On-Ramps There are no direct public cloud on-ramps located within the North Jersey market itself, as of September 2025. All major cloud providers, including AWS, Google Cloud (GCP), and Microsoft Azure, are accessed via dedicated private network interconnects (PNI) or wave services to their primary East Coast availability zones and network nodes in nearby New York City and Ashburn, VA.

Internet Exchange Points (IXPs) While some private peering exists, the majority of public internet peering for North Jersey data centers is routed through the major Internet Exchange Points located just across the river in New York City. This provides low-latency access to a global network of peers.

Bare Metal Bare metal server solutions are widely available from multiple providers in North Jersey. Operators like Hivelocity and phoenixNAP offer dedicated server hosting for compute-intensive workloads that require direct hardware access.

Power Analysis

Average Cost Of Power Industrial power costs in North Jersey typically range from $0.11 to $0.14 per kWh, as of September 2025. This pricing is competitive for the Northeast U.S., offering a significant cost advantage over power rates in neighboring New York City.

Power Grid Reliability The power grid supporting the primary data center corridors in North Jersey is reliable and well-engineered. Facilities are typically fed by redundant power from multiple utility substations, providing the stable and resilient energy supply required for mission-critical operations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts North Jersey's greatest advantage is its proximity to Manhattan. Data centers here offer single-digit millisecond latency to Wall Street and the major financial exchanges, making it a premier location for algorithmic trading, financial services, and media content delivery.

Regional Market Reach The market provides effective access to the entire New York City metropolitan area, one of the largest economic regions in the world with over 20 million people. It is a strategic hub for reaching consumers and business partners throughout the Northeast.

Tax Advantage For Data Centers New Jersey offers a general tax incentive program that can benefit data center operators and tenants. State tax credits are available based on capital investment and the creation of new full-time jobs, helping to lower the total cost of ownership for significant deployments.

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. While facilities are engineered to mitigate these factors, operators must plan for specific, recurring environmental threats.

The primary risks for infrastructure in this region include hurricanes, riverine flooding, winter weather, strong winds, and heat waves. Other notable risks include lightning and potential ice storms.