Data Centers in Brooklyn
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Brooklyn – Strategic Colocation Outside Manhattan
Brooklyn provides a compelling colocation alternative to Manhattan, offering robust connectivity and access to the greater New York metropolitan market. For businesses requiring low-latency access to financial exchanges and dense carrier ecosystems without exposure to the highest real estate costs, Brooklyn is an ideal base for digital infrastructure. This location ensures high-performance connectivity while balancing cost and operational risk.
Brooklyn: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | A+ | Excellent carrier density and proximity to major peering and financial hubs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | The nearest major on-ramp hub is Manhattan, accessible via high-speed metro fiber. |
| Power Cost | ~ $0.07–$0.09/kWh (USD) | Competitive rates for the region, with a significant mix of nuclear and hydro power. |
| Disaster Risk | Low (23.04 Score) | Very low overall risk score from national analysis, with manageable specific hazards. |
| Tax Incentives | Yes | Multiple state and local programs exist, including sales tax exemptions on equipment. |
| Sales Tax | 4.00% (New York State) | Local and city taxes may also apply; exemptions are available for qualified data centers. |
Network & Connectivity Ecosystem
Brooklyn's connectivity is extensive, leveraging its position within the New York City metropolitan area, one of the world's most important network hubs.
Carrier Density & Carrier Neutrality: With access to over 9 major providers as of September 2025, the market supports a rich, carrier-neutral environment. Facilities offer diverse fiber routes connecting to Manhattan and Northern New Jersey, ensuring resilient network performance and competitive pricing.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps located within Brooklyn itself as of September 2025. However, dedicated private network connections to all major cloud providers, including AWS, Google Cloud, and Microsoft Azure, are readily available through providers in nearby Manhattan and Secaucus, NJ.
Internet Exchange Points (IXPs): While major public exchanges like DE-CIX New York and NYIIX are located in Manhattan, access from Brooklyn is straightforward via dedicated metro cross-connects. This enables efficient, low-latency peering with hundreds of networks.
Bare Metal: Bare metal server options are available from multiple providers in the area, offering dedicated compute for performance-sensitive applications. Providers such as ColoCrossing have a presence, ensuring access to customizable hardware solutions.
Power Analysis
Average Cost Of Power: Industrial electricity rates in the Brooklyn area typically range from approximately $0.07–$0.09/kWh (USD) as of September 2025. These competitive rates, relative to other major global markets, help manage the total cost of ownership for high-density deployments.
Power Grid Reliability: The power grid serving Brooklyn's data centers is well-engineered, benefiting from the redundancy built into New York City's infrastructure. Facilities are supported by multiple substations and offer robust backup systems, including enterprise-grade UPS and diesel generator arrays, to ensure high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Brooklyn are strategically positioned near the Brooklyn Tech Triangle and provide low-latency connectivity to Manhattan's Financial District. This proximity is critical for financial services, media, and technology companies that depend on rapid data transfer.
Regional Market Reach: Brooklyn serves as an excellent hub for reaching the massive New York metropolitan area, which includes over 20 million people. Its network infrastructure provides a solid foundation for content delivery, cloud services, and enterprise applications targeting the northeastern United States.
Tax Advantage For Data Centers: New York provides significant tax incentives for data centers, primarily through a sales tax exemption on qualifying equipment purchases. This program directly reduces the capital expenditure required to build out or refresh server, storage, and networking hardware.
Natural Disaster Risk
Brooklyn has a very 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 the most relevant threats.
Key risks for the area include potential impacts from coastal waves, drought, hail, heatwaves, hurricanes, ice storms, and riverine flooding.
