For Infrastructure & Operations Professionals

Executive Summary

New York City is one of the most popular cities in the United States for colocation and other data center
services, with more than 40 wholesale and retail colocation providers in the metropolitan area. Forrester
estimates that there are more than 2 million square feet of leasable data center space in the greater New
York City metropolitan area, yet much of it within the city limits is already at full capacity. The result is
that many firms are exploring options in the New Jersey area, where costs are lower, resources are more
abundant, and New York City is only a few miles away.

Despite Risks and Costs, Many flock To NYC for Colocation despite high prices and higher risks, New York City (NYC) remains one of the most popular cities in the US for colocation. Why is this? One of the main reasons is that despite the risks, companies still prefer to colocate their primary or secondary data center in the same city as their corporate headquarters. NYC is the commercial capital of the US, which has created tremendous demand for data center space for both US and globally headquartered companies. In addition, NYC is a major network peering point for connections with Europe. Just as Miami is the US’s network gateway to South America and the Caribbean, NYC is a gateway to Europe. Spoiled For Choice Of Vendors, But Short On Space And Power In The City Although there are almost 40 providers of colocation in the greater NYC metropolitan area, organizations interested in colocating data centers in the region will still find their options limited. Why? Because NYC is one of the most constrained areas for space and power in the US. The US Department of Energy has identified the NYC metropolitan area as being critically congested and getting worse.1 Power requirements are growing in the NYC metropolitan area by about 1.7% per year, meaning that the city will need to add (or gain access to) between 6,000 and 7,000 MW of electricity resources over the next two decades.2 Not only is power limited, but it’s also expensive. As of March 2009, the average industrial power rate in New York state is 11.09 cents per Kwh, and in New Jersey it’s 9.52 cents per Kwh. Compared with the national average of 6.84 cents per Kwh, power costs in the NYC metro area can be as much as 60% higher. Not only is power scarce and pricey, but space is as well. In the most densely populated region of the US, the demand for residential, office, and retail space has made industrial-class space very costly. As with power, space in the NYC metropolitan area becomes more abundant the further you travel from the city (see Figure 2). As facilities have been filling up within the city limits, colocation companies and end users have been looking at facilities in nearby cities in New Jersey. In recent years, cities such as Weehawken (about three miles from NYC), Secaucus (about six miles from NYC), and Newark (about 13 miles from NYC) have become important data center hubs.

Facility Highlights

•1 Mbps to 10 Gbps bandwidth

•Low latency Tier 1 bandwidth

•Fiber optic or ethernet

•Half- and full-cabinet space

•Direct flow cooling system

•Redundant battery & generator

•Security codes and locks

•24x7 surveillance video

•Global Crossing Bandwidth

•Remote Reboot Ports available


NYC Colocation Specials


Quarter Cabinet Space

5 amps power

5Mbps Bandwidth

32 IP Addresses



Half Cabinet Space
10 amps power
10Mbps Bandwidth
64 IP Addresses
$899/month + $599 Install Fee

Full Cabinet Space
20 amps power
10Mbps Bandwidth
128 IP Addresses
$1599/month + $1499 Install Fee