Data Centers in Buffalo

Buffalo – Resilient, Low-Cost Northeast Edge Hub

Buffalo provides a compelling alternative to primary Northeastern markets, offering significant power cost savings and a low-risk environment. For businesses targeting latency-sensitive applications in the Great Lakes region and Southern Canada, Buffalo's infrastructure delivers reliable performance and uptime without the high operational expenses of coastal hubs.

Buffalo: At A Glance

Network & Connectivity Ecosystem

Buffalo serves as a key secondary hub connecting the Northeastern US with Canadian markets. Its network ecosystem is solid, with 14 data centers and 11 unique network service providers operating in the metro area as of September 2025.

Carrier Density & Carrier Neutrality: With over 10 carriers, Buffalo offers healthy connectivity options. The market includes a mix of regional and national providers, with carrier-neutral facilities ensuring competitive interconnection.

Direct Cloud On-Ramps: There are no public cloud on-ramps located directly within Buffalo as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure via private network extensions or wave services to primary hubs such as Toronto or the New York/New Jersey metro.

Internet Exchange Points (IXPs): Public peering is limited within Buffalo itself. Most traffic exchange occurs through private peering arrangements within local data centers or is routed through major internet exchanges in New York City and Chicago.

Bare Metal: Bare metal server options are available from providers in the area, offering dedicated compute for performance-intensive workloads. Providers like ColoCrossing maintain a significant presence in the Buffalo market.

Power Analysis

Buffalo stands out for its low-cost and reliable power, making it a highly attractive market for data center operators and tenants.

Average Cost Of Power: Industrial electricity rates average between $0.07–$0.09/kWh as of September 2025. These rates are substantially lower than in other major Northeast markets, leading to significant operational savings. The grid mix includes substantial contributions from nuclear (22%) and renewable sources (26%), primarily hydroelectric power.

Power Grid Reliability: The power grid supporting the Buffalo region is well-engineered and stable. Major data center locations benefit from redundant infrastructure, reducing the risk of outages and supporting high-uptime requirements.

Market Access, Business & Tax Climate

Buffalo offers strategic access to major population centers and a favorable business environment supported by targeted tax incentives.

Proximity To Key Business Districts: Data centers in Buffalo are strategically positioned to serve local enterprises in healthcare, advanced manufacturing, and finance. The market also functions as a disaster recovery site for businesses based in New York City.

Regional Market Reach: The metro provides low-latency connectivity to over 75 million people across the Northeastern US and Southern Canada, including major markets like Toronto, which is less than 100 miles away.

Tax Advantage For Data Centers: New York provides significant tax benefits for qualifying data centers. The primary advantage is a sales tax exemption on tangible personal property and services used to build and operate an internet data center, which substantially lowers capital and operational expenditures.

Natural Disaster Risk

Buffalo has a very low natural disaster risk profile, enhancing its appeal for mission-critical infrastructure.

As of September 2025, the area has a FEMA National Risk Index score of 23.04, classifying it as a "Very Low" risk region. The primary environmental hazards to consider are winter storms, riverine flooding, hail, heatwaves, and strong winds. The risk from major events like hurricanes, earthquakes, or wildfires is negligible compared to other US data center markets.