Data Centers in Rochester
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Rochester – Cost-Effective & Low-Risk Colocation
Executive Summary
Rochester is an excellent market for businesses prioritizing operational stability and cost efficiency. Its very low natural disaster risk and competitive power pricing make it a strong choice for disaster recovery sites and secondary infrastructure deployments. This strategic location helps companies improve application uptime while controlling long-term operational expenditures.
Rochester: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, but not a primary global hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramps are in the NYC/NJ metro area; private connectivity is available. |
| Power Cost | $0.07–$0.09/kWh (USD) | Competitive rates for the Northeast, with a diverse energy mix. |
| Disaster Risk | Low (23.04/100) – as of September 2025 | Significantly lower environmental risk compared to coastal markets. |
| Tax Incentives | Yes | Includes DC-specific sales and property tax abatements for qualifying facilities. |
| Sales Tax | 4.00% (State base rate) – as of September 2025 | Data center equipment may qualify for exemptions. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality The market features 2 data centers with access to over 3 unique network providers as of September 2025. Facilities are carrier-neutral, offering a choice of local and regional carriers for redundancy and cost management.
Direct Cloud On-Ramps As of September 2025, there are no direct public cloud on-ramps within Rochester. Secure, private connections to cloud providers like AWS, Google Cloud (GCP), and Microsoft Azure are established via dedicated circuits to major interconnection hubs in the New York City/New Jersey metro area.
Internet Exchange Points (IXPs) Public peering is limited in Rochester. Most network interconnection is handled privately within data centers or routed through major national IXPs in hubs like New York City.
Bare Metal Bare metal server options are available, providing dedicated compute for performance-sensitive workloads. Providers like ColoCrossing offer services in the region.
Power Analysis
Average Cost Of Power Industrial power rates in Rochester average between $0.07–$0.09/kWh (USD) as of September 2025. This pricing is highly competitive for the Northeast U.S., directly reducing the total cost of ownership for high-density deployments.
Power Grid Reliability The power grid is supported by a diverse generation mix, including natural gas (~52%), nuclear (~22%), and renewables (~26%), primarily hydropower. The infrastructure serving the area's data centers is well-engineered for reliability.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in Rochester provide low-latency connectivity to the region's concentration of advanced manufacturing, healthcare, and higher education institutions.
Regional Market Reach The market effectively serves businesses across Upstate New York, including Buffalo and Syracuse, and can reach into southern Ontario, Canada.
Tax Advantage For Data Centers New York offers significant data center-specific tax incentives, including sales tax exemptions on equipment and potential property tax abatements. These programs substantially lower the capital expense required to build out or refresh critical IT infrastructure.
Natural Disaster Risk
Rochester has a low risk profile for natural disasters, with a FEMA National Risk Index score of 23.04 out of 100 as of September 2025. The primary environmental risks for the area are from winter storms (ice storms, cold waves), riverine flooding, hail, and heat waves. The region is not exposed to major seismic or coastal flooding threats, making it an ideal location for disaster recovery and business continuity.
