Data Centers in Syracuse
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Syracuse, New York – Low-Cost, Low-Risk Digital Hub
Syracuse presents a compelling option for workloads that demand cost efficiency and high availability. Its combination of affordable power, a very low natural disaster risk profile, and state-backed tax incentives makes it an excellent market for disaster recovery sites, secondary deployments, and latency-tolerant applications. This market offers a stable, budget-friendly alternative to more expensive coastal hubs.
Syracuse, New York: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity with primary access to major hubs like New York City. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | No native on-ramps; access cloud providers via network extensions from New York City. |
| Power Cost | ~ $0.07–$0.09/kWh (USD) | Very competitive rates support cost-effective, high-density deployments. |
| Disaster Risk | Low (23.04 Score) – as of September 2025 | Significantly lower exposure to major natural disasters compared to coastal markets. |
| Tax Incentives | Yes | Multiple state programs exist, including sales and property tax abatements for equipment. |
| Sales Tax | 4.00% (State) – as of September 2025 | Local taxes may apply, but DC-specific exemptions can reduce the overall burden. |
Network & Connectivity Ecosystem
Syracuse is a regional connectivity hub with reliable access to major North American interconnection points.
Carrier Density & Carrier Neutrality: The market includes 4 providers across 5 data centers, as of September 2025. This environment provides sufficient options for redundancy and carrier-neutral colocation, ensuring competitive pricing for transit and transport.
Direct Cloud On-Ramps: Syracuse does not have any direct cloud on-ramps. Businesses connect to hyperscale clouds like AWS, Google Cloud (GCP), and Microsoft Azure through dedicated network links to primary hubs, most commonly New York City. Private network extensions offer secure, low-latency access.
Internet Exchange Points (IXPs): Public peering is not a major feature of this market. Most interconnection is handled privately between carriers or routed through major exchange points in New York City and other Northeast hubs.
Bare Metal: Bare metal server options are available in the Syracuse market. Providers like ColoCrossing offer dedicated server solutions for businesses requiring physical hardware without the capital expense of owning it.
Power Analysis
Syracuse offers a stable power grid with some of the most competitive electricity rates in the Northeast.
Average Cost Of Power: Industrial electricity rates average between $0.07–$0.09/kWh, as of September 2025. This significant cost advantage makes Syracuse ideal for power-intensive computing. The energy mix includes substantial contributions from nuclear (~22%) and renewables (~26%), including hydropower, which helps stabilize pricing.
Power Grid Reliability: The regional grid is well-engineered, drawing from a diverse generation portfolio. Data centers in the area typically feature connections to multiple substations, providing reliable and redundant power necessary for maintaining high uptime.
Market Access, Business & Tax Climate
Syracuse provides strategic access to the greater Northeast region, supported by a favorable business environment for technology infrastructure.
Proximity To Key Business Districts: Data centers in Syracuse serve local and regional enterprises, including major universities, healthcare systems, and advanced manufacturing firms. Proximity enables low-latency connections for these core regional economic drivers.
Regional Market Reach: From its central location in New York, Syracuse can effectively serve populations across Upstate New York, Northern Pennsylvania, and into Southern Canada. It is a logical location for content delivery and application hosting for this geographic corridor.
Tax Advantage For Data Centers: New York provides significant tax incentives for data centers. The primary benefit is a sales tax exemption for the purchase of equipment, software, and services used in qualifying facilities, directly reducing the capital costs of new deployments and hardware refreshes.
Natural Disaster Risk
Syracuse has a very low natural disaster risk profile, making it a reliable location for critical infrastructure.
The region's FEMA National Risk Index score is 23.04, rated as "Very Low," as of September 2025. The primary environmental risks are atmospheric and weather-related rather than catastrophic. Key hazards to consider in infrastructure design include cold waves, drought, hail, heatwaves, hurricanes, and riverine flooding. The risk from major seismic or coastal events is negligible.
