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Data Centers in New York

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New York – Global Finance & Connectivity Hub

Executive Summary

New York is a primary global market for any enterprise requiring ultra-low latency access to financial exchanges and international network carriers. Its dense interconnection ecosystem directly supports high-frequency trading, media content delivery, and cloud-first applications where performance is critical to revenue. For businesses serving the Northeast corridor or international markets, New York provides an unmatched concentration of connectivity and service providers.

New York: At A Glance

FactorRating / DataNotes
Global Connectivity GradeA+Top-tier global hub with extensive carrier diversity and subsea cable landings.
Direct Cloud On-RampsOver 3 — as of September 2025Includes AWS, Google Cloud (GCP), and Microsoft Azure for dedicated cloud access.
Power Cost~$0.07–$0.09/kWh (USD)Below the national average, providing a competitive operational cost advantage.
Disaster RiskLow (Score: 23.04) — as of September 2025Very low overall risk score from FEMA's National Risk Index.
Tax IncentivesYesMultiple programs, including sales tax exemptions on data center equipment.
Sales Tax4.00% (state base rate) — as of September 2025Local taxes may apply, but specific exemptions for data centers exist.

Network & Connectivity Ecosystem

New York's digital infrastructure is one of the most developed in the world, built to serve the planet's most demanding financial and media industries.

Carrier Density & Carrier Neutrality: With over 64 unique network providers, as of September 2025, the market offers exceptional choice. Carrier-neutral facilities in Manhattan, Secaucus (NJ), and surrounding areas provide access to this competitive ecosystem, ensuring resilient and cost-effective connectivity.

Direct Cloud On-Ramps: The region contains over 3 dedicated cloud on-ramps, enabling direct, private connections to major hyperscalers, as of September 2025. Available providers include AWS, Google Cloud (GCP), and Microsoft Azure, supporting hybrid cloud strategies across 4 cloud regions.

Internet Exchange Points (IXPs): Major exchanges like the New York International Internet Exchange (NYIIX) and the DE-CIX New York facilitate massive volumes of direct traffic peering. This reduces reliance on transit providers, lowering latency and network costs for participants.

Bare Metal: Bare metal server options are widely available from a variety of providers. Companies like ColoCrossing and Hivelocity offer dedicated server solutions for workloads requiring maximum performance and direct hardware control.

Power Analysis

Average Cost Of Power: Industrial power costs in New York range from approximately $0.07–$0.09/kWh (USD), as of September 2025. This pricing is competitive for a major global market, helping to manage the significant operational expenses of high-density compute. The state's power mix includes natural gas (52%), nuclear (22%), and renewables (26%).

Power Grid Reliability: The power grid, particularly in the core data center markets around New York City, is well-engineered with significant redundancy. Key data center clusters are typically supported by multiple substations, providing the reliability required for mission-critical operations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in the New York metro area provide low-latency connectivity to Wall Street's financial exchanges, Midtown Manhattan's media and enterprise headquarters, and a dense concentration of multinational corporations. This proximity is essential for financial trading, ad tech, and content delivery applications.

Regional Market Reach: The market acts as the central connectivity point for the entire Northeast United States megalopolis. A data center presence in New York effectively serves tens of millions of consumers and thousands of businesses from Boston to Washington, D.C.

Tax Advantage For Data Centers: New York provides a significant sales and use tax exemption for tangible personal property and services used in qualifying data centers. This incentive directly lowers the capital expenditure required for building new facilities or undertaking major hardware refreshes.

Natural Disaster Risk

New York has a low natural disaster risk profile for data center operations. Based on the FEMA National Risk Index, the state has a score of 23.04 out of 100, placing it in the "Very Low" risk category, as of September 2025.

While no location is without risk, the primary environmental hazards to consider are manageable with standard infrastructure hardening and operational planning. The main risks for the region include severe storms and their associated effects, such as coastal waves, hurricanes, ice storms, lightning, and riverine flooding, along with heat waves and hail.

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