Data Centers in South Jersey
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South Jersey – A Strategic Hub for East Coast Reach
South Jersey provides a compelling alternative to the higher-cost data center markets of New York City and Northern Virginia. It offers strategic proximity to major East Coast population centers, delivering low-latency connectivity without the premium price tag. This makes it an ideal location for disaster recovery, secondary deployments, and edge computing applications serving the Philadelphia and greater Mid-Atlantic region.
South Jersey: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional connectivity with diverse fiber routes to major hubs. |
| Direct Cloud On-Ramps | 0 — as of September 2025 | Nearest hubs are in Philadelphia and the NYC metro area. |
| Power Cost | $0.11 - $0.14/kWh | Based on regional averages for industrial use, as of September 2025. |
| Disaster Risk | High (Score: 75.31) | Primary risks include hurricane, storm surge, and severe wind events. |
| Tax Incentives | Yes — Varies | State programs can offer tax credits tied to capital investment and job creation. |
| Sales Tax | 6.63% State Sales Tax | New Jersey state rate, as of September 2025. |
Network & Connectivity Ecosystem
South Jersey's connectivity is defined by its strategic location between major peering points in New York City and Ashburn, Virginia. While not a primary hub itself, it benefits from the dense fiber infrastructure running through the state.
Carrier Density & Carrier Neutrality: The market is served by over 4 providers, as of September 2025. Carrier-neutral facilities offer access to a mix of regional and national networks, providing reliable options for redundancy and competitive pricing.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within South Jersey, as of September 2025. Businesses connect to cloud providers via private network extensions or dedicated circuits to nearby hubs in Philadelphia and the New York/New Jersey metro area.
Internet Exchange Points (IXPs): Public peering is not a major feature of this market. Most interconnection is handled privately between carriers or routed through major exchange points in nearby cities like New York City or Philadelphia.
Bare Metal: Bare metal server options are available from providers in the broader New Jersey and Philadelphia area. Companies like Hivelocity and ColoCrossing offer dedicated server solutions that can serve this region effectively.
Power Analysis
Average Cost Of Power: Industrial electricity rates in the region generally range from $0.11 to $0.14 per kWh, as of September 2025. These costs are competitive for the Northeast, offering potential savings compared to the New York City metro area.
Power Grid Reliability: The power grid supporting South Jersey's data centers is well-engineered, benefiting from regional investments in infrastructure. Facilities typically feature redundant feeds from multiple utility substations to ensure high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in South Jersey provide low-latency connectivity to the Philadelphia metropolitan area, Camden's growing business corridor, and the suburbs of Southern New Jersey. This supports financial, healthcare, and logistics industries operating throughout the Delaware Valley.
Regional Market Reach: The market is strategically positioned to serve a large population base across New Jersey, Pennsylvania, Delaware, and Maryland. Its location makes it an effective point of presence for content delivery and edge computing workloads.
Tax Advantage For Data Centers: New Jersey offers a state-level incentive program that can provide tax credits based on significant capital investment and the creation of new full-time jobs. This program can help offset initial build-out and operational costs for qualifying data center projects.
Natural Disaster Risk
South 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 score is elevated, site selection and facility engineering can mitigate many of these factors.
The primary environmental threats to data center operations in this region include hurricanes, severe wind (including tornadoes), riverine flooding, and winter storms. Other notable risks are lightning, hail, and drought.
