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Data Centers in New York

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New York – America's Interconnection Capital

New York is the premier North American market for any organization that requires world-class interconnection and ultra-low latency access to global financial, media, and enterprise ecosystems. The region's unmatched fiber density and carrier diversity provide a direct path to optimizing application performance and securing global revenue streams. For businesses competing on speed and reliability, a presence in New York is not optional; it is essential.

New York: At A Glance

FactorRating / DataNotes
Global Connectivity GradeA+World-class fiber density, peering, and transatlantic connectivity.
Direct Cloud On-RampsOver 3 — as of September 2025Direct access to AWS, Google Cloud (GCP), and Microsoft Azure.
Power Cost~$0.07–$0.09/kWh — as of September 2025Competitive for a global Tier 1 market with a diverse energy mix.
Disaster RiskLow (Score: 23.04) — as of September 2025Very low national risk score for major natural disasters.
Tax IncentivesYesIncludes DC-specific sales tax exemptions and other state and federal programs.
Sales Tax4.00% — as of September 2025State-level rate; local taxes may also apply in some jurisdictions.

Network & Connectivity Ecosystem

New York’s digital infrastructure is one of the most developed and important hubs on the planet. It serves as the primary East Coast gateway for data traffic between North America and Europe.

Carrier Density & Carrier Neutrality The market features a dense and diverse ecosystem with over 60 network service providers, as of September 2025. This ensures competitive pricing and provides extensive options for building resilient, multi-carrier network architectures in the region's 94 data centers.

Direct Cloud On-Ramps With over 3 dedicated on-ramps connecting to 4 distinct cloud regions, as of September 2025, New York offers exceptional direct access to major cloud providers. Private, low-latency connections are readily available to AWS, Google Cloud (GCP), and Microsoft Azure, enabling secure and high-performance hybrid cloud deployments.

Internet Exchange Points (IXPs) The metro is home to several major peering exchanges, including DE-CIX New York and NYIIX. These exchanges facilitate efficient traffic exchange between networks, lowering transit costs and improving latency for end-users.

Bare Metal Bare metal server availability is excellent, with numerous providers offering dedicated compute for performance-intensive workloads. Providers like ColoCrossing and phoenixNAP maintain a significant presence, supporting custom infrastructure needs.

Power Analysis

Average Cost Of Power Industrial power costs in the New York market typically range from $0.07 to $0.09/kWh (USD), as of September 2025. This pricing is highly competitive for a primary global data center market and supports predictable operational expenses. The grid benefits from a diverse generation mix that includes natural gas, nuclear, and a significant share of renewables.

Power Grid Reliability The power grid serving the primary data center corridors in and around New York is well-engineered and reliable. Data centers are supported by redundant power feeds and multiple substations, ensuring high levels of uptime required by mission-critical financial and enterprise applications.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers in the New York metro provide low-latency connectivity to the world’s most important business districts. This includes Wall Street for financial services, Madison Avenue for media and advertising technology, and the growing "Silicon Alley" tech sector.

Regional Market Reach A New York deployment can effectively serve the entire Northeast Megalopolis, an economic region of over 50 million people. It is also the primary interconnection point for transatlantic cables, making it an ideal hub for reaching European markets with minimal delay.

Tax Advantage For Data Centers New York offers significant tax incentives that reduce the cost of building and operating a data center. The state provides a sales tax exemption on the purchase of equipment used in qualifying data centers, which directly lowers capital expenditures. This financial benefit makes large-scale deployments more cost-effective.

Natural Disaster Risk

New York has a low risk profile for natural disasters, according to federal assessments, with a FEMA National Risk Index score of 23.04 out of 100, as of September 2025. While the overall threat is minimal compared to other US regions, facility operators and tenants should maintain plans for specific regional hazards. The primary risks to consider include hurricanes, heat waves, ice storms, and riverine flooding in certain low-lying areas.

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