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Data Centers in New York

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New York – Global Finance & Connectivity Hub

Executive Summary

New York is the premier North American market for financial services, media, and international firms that require elite connectivity and low-latency performance. Its unmatched density of carriers and direct access to global markets makes it a critical hub for applications where milliseconds mean millions. For businesses demanding maximum uptime and reach, New York is not just an option; it's the standard.

New York: At A Glance

FactorRating / DataNotes
Global Connectivity GradeA+One of the world's most connected cities, linking North America and Europe.
Direct Cloud On-RampsOver 3 – as of September 2025Direct access to AWS, Azure, and Google Cloud (GCP) reduces latency.
Power Cost$0.07–$0.09/kWh – as of September 2025Competitive for a Tier 1 global market, enabling scalable deployments.
Disaster RiskLow (FEMA NRI Score: 23.04) – as of September 2025Very low overall risk score; manageable, well-understood regional hazards.
Tax IncentivesYesMultiple state programs, including sales tax exemptions for DC equipment.
Sales Tax4.00% – as of September 2025State base rate; local taxes may apply. Exemptions available for DC equipment.

Network & Connectivity Ecosystem

New York’s digital infrastructure is one of the most developed and important in the world. It serves as the primary interconnection point between North America and Europe, with a dense ecosystem of providers offering unparalleled performance.

Carrier Density & Carrier Neutrality: With over 60 carriers and 94 data centers, the market offers extensive choice, as of September 2025. This ensures competitive pricing and resilient network design options, with numerous carrier-neutral facilities acting as central meeting points for global networks.

Direct Cloud On-Ramps: The region features over 3 dedicated cloud on-ramps serving 4 major cloud regions, as of September 2025. Direct, low-latency connections are available to AWS, Google Cloud (GCP), and Microsoft Azure, allowing enterprises to build effective hybrid cloud architectures.

Internet Exchange Points (IXPs): Major exchanges like DE-CIX New York and the New York International Internet Exchange (NYIIX) are central to the ecosystem. They facilitate massive volumes of direct traffic peering, reducing transit costs and improving network performance for participants.

Bare Metal: Bare metal server options are widely available from a variety of providers. Companies like ColoCrossing and Hivelocity offer dedicated server solutions for workloads requiring the performance and security of single-tenant hardware.

Power Analysis

Average Cost Of Power: Industrial power rates in the New York market typically range from $0.07 to $0.09 per kWh, as of September 2025. This price point is highly competitive for a global financial capital, helping to manage the operational costs of high-density compute. The state's energy mix includes significant contributions from natural gas (around 52%), nuclear (22%), and renewables (26%).

Power Grid Reliability: The power grid, particularly in the key data center clusters in New Jersey and the New York metro area, is well-engineered and reliable. Data centers are supported by redundant power feeds and multiple substations to ensure high levels of uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in the New York market provide low-latency connectivity to Manhattan's Financial District and the corporate headquarters of Midtown. This proximity is essential for high-frequency trading, real-time analytics, and media content delivery.

Regional Market Reach: The market serves as the digital hub for the entire Northeast Corridor, reaching tens of millions of consumers from Boston to Washington, D.C. Its extensive subsea cable landings also make it the default gateway for any business serving transatlantic customers.

Tax Advantage For Data Centers: New York provides significant tax incentives that lower the cost of data center operations. The state offers a sales tax exemption on the purchase of tangible personal property and services for qualifying internet data centers. This program directly reduces the large capital investment required for servers, networking gear, and other critical equipment.

Natural Disaster Risk

New York has a low natural disaster risk profile for data center infrastructure, with a FEMA National Risk Index score of 23.04 out of 100, as of September 2025. While no location is without risk, the threats are well-documented and can be mitigated with standard engineering and operational planning.

The primary environmental risks to consider are seasonal and include:

  • Hurricane: Coastal and inland effects from high winds and heavy rain.
  • Ice Storm: Potential for significant ice accumulation impacting power lines and transport.
  • Heat Wave: Periods of extreme heat that stress cooling systems.
  • Riverine Flooding: Risk in specific, low-lying areas, mitigated by proper site selection.
  • Lightning: A common seasonal risk requiring appropriate facility-level protection.
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