Data Centers in Buffalo

Buffalo – Strategic Low-Latency Bridge to Canadian Markets

Executive Summary

Buffalo is a high-performance hub for enterprises requiring a cost-effective link between the US East Coast and the Toronto tech sector. It provides an ideal balance of physical safety and low operational costs for primary production or disaster recovery sites. This market offers a calculated advantage for businesses prioritizing security and speed without the high price of a primary metro.

Buffalo: At A Glance

Network & Connectivity Ecosystem

Buffalo serves as a regional interconnection point on major long-haul fiber routes linking Chicago, New York, and Toronto. The market ensures that network operators find diverse routing to avoid the congestion found in Manhattan or Northern Virginia as of December 2025.

Carrier Density & Carrier Neutrality: The market features over 10 carriers as of December 2025. This environment facilitates competitive pricing for blended IP transit and transport services through a mix of regional and global providers.

Direct Cloud On-Ramps: There are 0 direct cloud on-ramps in the immediate metro area as of December 2025. Most local deployments utilize high-speed private extensions or wavelength services to reach the nearest hubs in Toronto or New York City, typically achievable with minimal latency impact.

Internet Exchange Points (IXPs): Buffalo lacks a massive public IXP, so most peering happens at primary carrier hotels. These private interconnects are the standard for local traffic exchange, ensuring efficient flow to regional ISPs as of December 2025.

Bare Metal: High-performance compute requirements are well-supported by local and regional providers. Reliable bare metal services are available through operators such as ColoCrossing, which maintains a significant footprint in the market as of December 2025.

Power Analysis

The energy story in Buffalo is one of the market’s strongest selling points. The combination of local generation and a sturdy regional grid makes it a top-tier choice for power-hungry deployments.

Average Cost Of Power: Industrial electricity rates range from $0.07/kWh to $0.09/kWh as of December 2025. The generation mix is notably sustainable, with approximately 26% coming from renewables–largely hydroelectric power from nearby Niagara Falls–complemented by 22% nuclear and 52% fossil fuels. These rates are significantly lower than those in coastal urban centers, providing a clear advantage for long-term operational budgets.

Power Grid Reliability: The grid in Western New York is well-engineered and benefits from multi-substation support. Redundancy is a hallmark of the local infrastructure, purpose-built to handle the heavy industrial load historically present in the region.

Market Access, Business & Tax Climate

Buffalo is more than just a pass-through; it is a strategic business hub that offers significant logistical advantages for organizations operating across the border.

Proximity To Key Business Districts: Data centers here are centrally located near the Buffalo Central Business District and provide immediate access to the Canadian border. This proximity is vital for sectors like cross-border finance and logistics that require low-latency communication between US and Canadian operations.

Regional Market Reach: From a Buffalo facility, companies can effectively serve a population of over 20 million people within a 500-mile radius. This reach includes major markets like Toronto, Cleveland, Pittsburgh, and Philadelphia.

Tax Advantage For Data Centers: New York provides a specific sales tax exemption for tangible personal property used in internet data centers. This incentive allows operators to significantly reduce the cost of servers, storage, and cooling equipment as of December 2025.

Natural Disaster Risk

Buffalo is characterized by a very stable physical environment, making it a preferred site for disaster recovery and primary production workloads.

Risk Rubric: Low (23.04) – as of December 2025.

The market sits well below the national average for major natural catastrophes. The primary environmental considerations involve regional weather patterns rather than catastrophic seismic or coastal events. As of December 2025, the highest-scoring natural hazards include:

• Ice Storms
• Cold Waves
• Heat Waves
• Riverine Flooding
• Hail
• Lightning

Other risks, such as landslides or hurricanes, are considered minor or have negligible impact on local infrastructure. Organizations typically manage winter-related risks through standard facility hardening and reliable HVAC systems.