Data Centers in New York

New York – Financial Hub & Global Gateway

Executive Summary

New York is one of the world's most critical digital infrastructure markets, built to serve the extreme low-latency demands of global finance, media, and enterprise headquarters. Its unmatched carrier density and direct cloud access provide the high-performance foundation required for mission-critical applications that drive international commerce. For businesses needing to reach the US East Coast and European markets simultaneously, New York offers a strategic and powerful advantage.

New York: At A Glance

Network & Connectivity Ecosystem

New York's connectivity is among the best on the planet, serving as a primary intersection for data traffic between North America and Europe. The ecosystem is dense, mature, and highly competitive.

Carrier Density & Carrier Neutrality With over 60 unique network providers, as of September 2025, the market offers exceptional choice. Businesses can connect with nearly any global or regional carrier from carrier-neutral facilities located in Manhattan, Secaucus (New Jersey), and surrounding areas.

Direct Cloud On-Ramps Direct, private connections to major cloud providers are readily available, with over 3 on-ramps enabling dedicated access to 4 cloud regions as of September 2025. Available providers include AWS, Google Cloud (GCP), and Microsoft Azure, ensuring low-latency hybrid cloud architectures.

Internet Exchange Points (IXPs) The region is home to several major peering exchanges, including DE-CIX New York and NYIIX. These platforms allow networks to exchange traffic directly, reducing latency and improving performance for end-users across the northeastern United States.

Bare Metal Bare metal server options are widely available from numerous providers. Companies like ColoCrossing and phoenixNAP offer dedicated compute for workloads requiring maximum performance and security without a virtualization layer.

Power Analysis

Average Cost Of Power Industrial power costs in the New York market typically range from $0.07–$0.09/kWh, as of September 2025. This pricing is highly competitive for a global financial center and helps manage the operational expenses of high-density deployments. The state's energy mix includes significant contributions from natural gas (over 50%), nuclear, and hydroelectric power.

Power Grid Reliability The power grid serving the primary data center corridors is well-engineered and resilient. Key facilities are supported by multiple utility substations, offering the redundancy necessary to maintain exceptional uptime for critical business operations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers in the New York metro area provide low-latency connectivity directly to the financial heart of Wall Street, the media and advertising industries on Madison Avenue, and countless enterprise headquarters throughout the tri-state area. This proximity is essential for high-frequency trading, real-time ad bidding, and other speed-sensitive applications.

Regional Market Reach From New York, organizations can effectively serve the entire Northeast US megalopolis, a massive economic region stretching from Boston to Washington, D.C. It is also the primary North American gateway for transatlantic data flows, offering minimal latency to London, Frankfurt, and other European hubs.

Tax Advantage For Data Centers New York provides significant financial incentives for data center operators and tenants. The state offers a sales tax exemption on the purchase of tangible personal property, which substantially reduces the capital cost of building or upgrading infrastructure.

Natural Disaster Risk

New York has a low overall risk profile for natural disasters, with a FEMA National Risk Index score of 23.04 out of 100, as of September 2025. While the aggregate risk is low, operators should engineer facilities to mitigate specific, localized threats.

The primary environmental risks for the region are:

• Hurricane events
• Ice storms
• Riverine flooding
• Heat and cold waves
• Lightning