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Data Centers in New York

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Explore Markets in New York

New York – The Premier Global Hub for Finance and Connectivity

Executive Summary

New York is the primary destination for organizations requiring the absolute lowest latency to global financial markets and international media hubs. With an unmatched density of subsea cables and domestic fiber, this market provides a strategic advantage for high-stakes enterprise data sovereignty. It remains the gold standard for high-performance interconnection in North America.

New York: At A Glance

FactorRating / DataNotes
Global Connectivity GradeA+Top tier density of international and domestic fiber.
Direct Cloud On-RampsOver 3 – as of September 2025Private access to AWS, Google Cloud (GCP), and Microsoft Azure.
Power Cost$0.07–$0.09/kWh – as of September 2025Competitive industrial rates with a diverse energy mix.
Disaster RiskLow (23.03) – as of September 2025Low vulnerability compared to other major coastal hubs.
Tax IncentivesYesSales tax exemptions on equipment and utility credits.
Sales Tax4.00% – as of September 2025Base state rate applied to non-exempt services.

Network & Connectivity Ecosystem

New York operates as a primary global gateway with deep fiber penetration and a massive concentration of carrier-neutral facilities. Every major international service provider maintains a presence here to facilitate high-speed data transfer across the Atlantic.

Carrier Density & Carrier Neutrality: There are over 60 carriers operating in the market as of September 2025. This high density ensures a competitive environment for bandwidth pricing and provides diverse routing options to manage uptime requirements.

Direct Cloud On-Ramps: The region features over 3 direct on-ramps, enabling high-performance access to 4 cloud regions as of September 2025. This includes dedicated private connections to AWS, Google Cloud (GCP), and Microsoft Azure.

Internet Exchange Points (IXPs): Primary exchanges like DE-CIX New York and NYIIX allow for efficient peering and reduced transit costs by keeping local traffic within the metropolitan area.

Bare Metal: High-performance compute options are readily available for rapid scaling through providers such as Hivelocity and ColoCrossing as of September 2025.

Power Analysis

Energy infrastructure in New York is purpose-built to support the high power-density requirements of modern colocation and high-performance computing clusters.

Average Cost Of Power: Industrial electricity averages between $0.07 and $0.09/kWh as of September 2025. The generation mix consists of approximately 52% fossil fuels, 22% nuclear, and 26% renewables, including hydro, wind, and solar. These rates provide a stable financial foundation for large-scale deployments.

Power Grid Reliability: Major data center corridors utilize well-engineered grids with multi-substation support. This redundancy is essential for maintaining the high reliability required by the financial and healthcare sectors.

Market Access, Business & Tax Climate

New York provides direct physical and digital access to the largest concentration of capital and corporate decision-makers in North America.

Proximity To Key Business Districts: Data centers are strategically positioned near Wall Street and Midtown Manhattan. This proximity is vital for industries like fintech and media that require the lowest possible latency for real-time data processing.

Regional Market Reach: A deployment in this market serves a massive population across the Tri-State area and provides a high-speed bridge to European markets via subsea landing stations.

Tax Advantage For Data Centers: Qualifying facilities benefit from state sales tax exemptions on all tangible personal property used within the data center. This incentive significantly lowers the total cost of ownership for hardware-intensive deployments.

Natural Disaster Risk

New York maintains a Low FEMA NRI Score of 23.03 as of September 2025. The geography provides a resilient environment for infrastructure compared to other major coastal hubs.

The primary natural hazards identified for the region include:

  • River Flood
  • Hurricane
  • Ice Storm
  • Heat Wave
  • Cold Wave
  • Lightning
  • Drought

While these risks exist, the data center facilities in the region are typically engineered with sturdy flood defenses and backup systems to manage seasonal weather events effectively. Other potential hazards like landslides are considered minor factors in this market as of September 2025.

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