Data Centers in South Jersey
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South Jersey – Strategic Access to Northeast Markets
South Jersey provides a compelling alternative to the premium-priced data center markets of New York City and Philadelphia. It offers strategic proximity for latency-sensitive applications serving the Northeast corridor, combining this access with a more favorable cost structure for infrastructure deployment.
South Jersey: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good connectivity, primarily routed through larger adjacent metropolitan hubs. |
| Direct Cloud On-Ramps | 0 — as of September 2025 | Nearest on-ramps are in Philadelphia and New York City; private extensions available. |
| Power Cost | $0.11 - $0.13/kWh | A competitive rate compared to major Northeast metropolitan centers. |
| Disaster Risk | High (75.3/100) — as of September 2025 | Primary risks include hurricane, storm surge, and winter weather events. |
| Tax Incentives | Yes — General | A state tax credit is tied to capital investment and new full-time jobs. |
| Sales Tax | 6.63% (New Jersey) — as of September 2025 | State-level sales tax applies to equipment and services. |
Network & Connectivity Ecosystem
South Jersey's connectivity is defined by its proximity to major interconnection hubs. While not a primary hub itself, it offers reliable access to the dense networks of Philadelphia and New York City.
Carrier Density & Carrier Neutrality: The market includes access to over 4 carriers in local facilities as of September 2025, with many more available via short-haul circuits to Philadelphia. Carrier-neutral facilities are the standard, providing choice in connectivity.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps located within South Jersey as of September 2025. Businesses connect to all major cloud providers, including AWS, Google Cloud, and Microsoft Azure, through dedicated circuits to interconnection facilities in Philadelphia and the greater New York/New Jersey metro area.
Internet Exchange Points (IXPs): Public peering is not a feature of this market. Most peering is conducted privately or through major exchanges in nearby Philadelphia and New York City, ensuring low-latency routes to national and international networks.
Bare Metal: Bare metal server options are available, often provisioned from providers with a presence in the broader New Jersey and Philadelphia regions. Options from providers like Hivelocity and ColoCrossing can serve deployments in this area.
Power Analysis
Average Cost Of Power: Industrial electricity rates in South Jersey typically range from $0.11 to $0.13 per kWh as of September 2025. This pricing presents a notable operational cost saving compared to the higher utility rates found in adjacent major cities.
Power Grid Reliability: The region's power grid is well-engineered, benefiting from infrastructure designed to serve a dense suburban and industrial corridor. Data centers in the area are supported by redundant power feeds from multiple utility substations, ensuring high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: South Jersey data centers are strategically positioned to serve the Philadelphia metropolitan area, Atlantic City, and the extensive corporate and pharmaceutical presence throughout central and southern New Jersey. This location provides low-latency connectivity essential for financial, healthcare, and logistics industries.
Regional Market Reach: The market effectively serves a large and affluent consumer base from Washington D.C. to New York City. Its location makes it an ideal disaster recovery site for businesses with primary operations in more expensive or congested urban centers.
Tax Advantage For Data Centers: New Jersey offers a tax credit program for new technology investments, which can significantly lower the financial burden of a new data center deployment. This incentive, based on capital investment and job creation, makes the state a financially attractive option for large-scale projects.
Natural Disaster Risk
South Jersey has a high natural disaster risk profile, with a FEMA National Risk Index score of 75.31 out of 100 as of September 2025. The location requires that facilities are built to withstand specific environmental threats common to the mid-Atlantic region. Key risks include hurricanes, coastal and riverine flooding, winter storms, and severe straight-line winds.
