Data Centers in Buffalo

Buffalo – Low-Cost Power & Low-Risk Colocation

Buffalo, New York offers a compelling data center market for businesses prioritizing operational stability and cost efficiency. The region's combination of extremely low-cost, hydro-rich power and a very low natural disaster risk profile creates a secure environment for critical infrastructure. This makes Buffalo an ideal location for secondary disaster recovery sites and workloads that are latency-tolerant but demand high uptime and predictable operating expenses.

Buffalo: At A Glance

Network & Connectivity Ecosystem

Buffalo's connectivity is built for resilience and regional access rather than hyperscale cloud density. As of September 2025, the market has 11 unique network providers operating across 14 data centers.

Carrier Density & Carrier Neutrality With over 11 carriers, Buffalo provides solid network choice. The ecosystem is sufficient for enterprise needs, DR, and regionally focused applications, with multiple carrier-neutral facilities offering diverse fiber routes.

Direct Cloud On-Ramps There are no public cloud on-ramps located directly within Buffalo. Businesses connect to hyperscale clouds like AWS, Google Cloud (GCP), and Microsoft Azure through private network extensions or dedicated circuits to major interconnection hubs such as New York City or Toronto.

Internet Exchange Points (IXPs) Public peering is limited within Buffalo. Most traffic exchange occurs through private peering arrangements within local data centers or is routed to major IXPs in nearby metropolitan areas.

Bare Metal Bare metal server capacity is readily available from providers in the area. Operators like ColoCrossing provide automated server deployments well-suited for hosting, gaming, and dedicated application environments.

Power Analysis

Average Cost Of Power Industrial electricity rates in the Buffalo region average between $0.07–$0.09/kWh as of September 2025. This highly competitive pricing is a primary driver for data center operations, significantly lowering total cost of ownership for power-dense deployments. The grid mix is favorable, with renewables (mostly hydro) and nuclear power making up nearly half of the state's generation.

Power Grid Reliability The power grid serving the Buffalo market is well-engineered and benefits from substantial, reliable baseload power from hydroelectric sources. Major data center facilities are typically supported by redundant substations, ensuring high levels of uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers in Buffalo serve the city's commercial center and the broader Western New York region, which includes finance, healthcare, and advanced manufacturing sectors. The location provides a strategic East Coast presence without the cost or congestion of the New York City metro area.

Regional Market Reach Buffalo's geographic position makes it an effective hub for serving populations across the Northeastern United States and Southern Ontario, Canada. It offers low-latency connectivity to Toronto, which is less than 100 miles away, creating a unique cross-border advantage.

Tax Advantage For Data Centers New York provides significant financial incentives that directly reduce capital and operational expenses. The state's sales tax exemption on tangible personal property, including servers and infrastructure equipment, provides an immediate and substantial cost saving for data center builds and refreshes.

Natural Disaster Risk

Buffalo has a very low natural disaster risk profile, with a FEMA National Risk Index score of 23.04 out of 100 as of September 2025. This score places it in one of the safest categories in the United States for critical infrastructure placement.

Key environmental risks are primarily limited to manageable weather events. The main hazards to consider are winter storms, cold waves, strong winds, and potential for riverine flooding in specific low-lying areas. The region has no meaningful exposure to earthquakes, hurricanes, or wildfires.