Data Centers in Long Island

Long Island – A Resilient Alternative to NYC Metro

Long Island provides a compelling data center market for businesses that require low-latency connectivity to New York City's financial and media hubs but prefer to operate outside the dense urban core. The region offers a strategic balance of robust connectivity, competitive power costs, and a significantly lower natural disaster risk profile. This makes it an ideal location for both primary production workloads and critical disaster recovery sites serving the greater New York metropolitan area.

Long Island: At A Glance

Network & Connectivity Ecosystem

Long Island’s connectivity is defined by its strategic proximity to New York City, one of the world's primary internet hubs.

Carrier Density & Carrier Neutrality The market is served by over 35 unique network providers, as of September 2025. The presence of multiple carrier-neutral facilities ensures competitive pricing and diverse routing options for achieving low-latency and high-uptime connectivity.

Direct Cloud On-Ramps While Long Island itself hosts no direct cloud on-ramps, facilities offer high-speed, private connectivity to all major cloud providers in nearby interconnection hubs. Access to AWS, Google Cloud (GCP), Microsoft Azure, and others is readily available through dedicated circuits terminating in New York City and Northern New Jersey.

Internet Exchange Points (IXPs) Most network peering is handled through private interconnects or via the major exchanges in Manhattan, such as NYIIX and DE-CIX New York. This provides direct access to hundreds of global networks, content providers, and enterprise partners.

Bare Metal Bare metal server options are available from multiple providers in the region, offering dedicated compute for performance-sensitive applications. Providers such as ColoCrossing and Hivelocity can serve deployments in and around the New York market.

Power Analysis

Average Cost Of Power Industrial electricity rates on Long Island typically range from $0.07 to $0.09/kWh, as of September 2025. These competitive rates, relative to other major Northeast markets, help control ongoing operational expenses for power-intensive deployments. The grid sources power from a mix of natural gas, nuclear, and renewable resources.

Power Grid Reliability The power grid is engineered to support a dense commercial and residential population. Data centers in the primary colocation zones benefit from reliable utility service, with many facilities offering access to redundant power feeds from separate substations to maximize uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers on Long Island offer low-latency connectivity to Manhattan, making them an excellent choice for financial services, media, and technology companies. This proximity supports applications that demand rapid response times to New York City’s core business districts.

Regional Market Reach The location is ideal for serving the massive New York metropolitan population. It also functions as a key gateway for transatlantic data traffic, connecting North America to Europe with minimal delay.

Tax Advantage For Data Centers New York provides significant financial incentives, including a sales and use tax exemption on qualified data center equipment. This state-level program directly reduces the capital expenditure required for new builds and hardware refreshes.

Natural Disaster Risk

Long Island has a very low natural disaster risk profile, with a FEMA National Risk Index score of 23.03 out of 100, as of September 2025. This score makes it a geostrategically sound location for critical infrastructure compared to other coastal areas.

While the overall risk is low, the primary environmental considerations for infrastructure are hurricanes, ice storms, heat waves, and lightning. Data centers in the region are purpose-built to mitigate these specific threats.