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New Jersey data centers have a lot of offer customers exploring data center services. Data center leasing in the New York Tri-State region has grown 70% in 2022, with significant investments from QTS, Coresite, and Equinix in the New Jersey data center market. With a strategic location near New York City and other major markets, robust network infrastructure, and cost advantages, the Garden State should be on your shortlist when evaluating colocation space.

Join us as we explore the advantages of New Jersey data centers!

New Jersey Data Center Market Overview

The State of New Jersey is a US data center market leader. Its 71 data centers are 9th most of any US state. There are major concentrations of data centers in Hudson County and Secaucus, given their proximity to New York City. Piscataway and New Brunswick, located about 40 miles Southeast of New York City, are home to another significant concentration of data centers.

According to CBRE, data center demand in the market was incredibly strong in 2023, with demand outpacing supply. The needs of financial institutions and AI operators were key drivers. QTS will soon open an 8 MW data center in Piscataway, while Databank plans to open a new facility in 2024.

New Jersey Offers Proximity to Major Markets

New Jersey’s geographical proximity to the influential markets of New York City and Philadelphia is one of the reasons the state is a major hub for data centers. The state’s geographical advantage fuels operational efficiency and fosters innovation. The proximity to major markets ensures swift and efficient connectivity, reducing data transmission times and enabling real-time decision-making. This is particularly crucial for industries such as finance, where microseconds can make a difference in trading outcomes.

New Jersey’s data center colocation facilities are strategically positioned to deliver remarkably low latency connectivity in an era where every millisecond counts. The reduced physical distance to major markets translates into faster data transmission and processing times. This low latency is especially critical for industries like finance, where split-second decisions can make or break deals. Additionally, it’s invaluable in healthcare, where real-time data access can save lives, and in e-commerce, where speedy page loading directly impacts user satisfaction and conversion rates.

New Jersey Data Centers Deliver Cost Advantages

While New York City remains a global economic powerhouse, its high cost of living and doing business has driven many companies to explore alternative options. New Jersey is a cost-effective solution for data center colocation, particularly compared to its neighbor across the Hudson River.

New York City boasts one of the world’s most expensive real estate markets, and this extends to data center facilities. In contrast, New Jersey offers more affordable real estate options without sacrificing quality. Lower property costs translate into significant savings for businesses seeking data center colocation solutions. These savings can be redirected toward enhancing infrastructure or expanding operations.

New York’s energy costs are among the highest in the nation. In New Jersey, competitive energy pricing offers businesses a more cost-effective environment for running and cooling data center equipment. Lower energy expenses can substantially impact the overall operational budget, especially for organizations with power-intensive data center requirements.

New Jersey provides tax incentives and favorable business conditions that can substantially reduce the tax burden for data center operators. These incentives include exemptions on sales tax for data center equipment and infrastructure. On the other hand, New York has a complex tax structure that often results in higher operational costs.

Finally, the labor cost in New York City is notably higher than New Jersey’s. The Garden State offers a competitive labor market with skilled professionals at a more affordable rate. Data center operators and businesses can benefit from these lower labor costs while maintaining a talented workforce to manage and support their operations.

New Jersey Offers Robust Infrastructure for Internet Access

The Garden State has earned its reputation as a network-rich environment. New Jersey has a dense web of fiber optic networks, providing data center operators and businesses with extensive connectivity options. Fiber connectivity covers 63% of the state, which ranks New Jersey 3rd in the US for fiber coverage.

The Confluence-1 submarine cable system, coming online in 2025, will further enhance connectivity options in the US. This submarine cable system will connect New Jersey data centers to the cities of Virginia Beach, VA, Myrtle Beach, SC, Jacksonville, FL, and Boca Raton, FL. This will allow seamless connectivity to much of the East Coast from a New Jersey data center.

This high level of network density facilitates not only quick access to local markets but also seamless connections to national and international destinations. The New Jersey Fiber Exchange (NJFX) in Wall Township, NJ is home to three international submarine cables, with two more coming online by 2026. These allow for connectivity to the United Kingdom, Ireland, Denmark, Norway, and Brazil.

Recommended Data Centers in New Jersey

If you are looking for colocation services in New Jersey, here are a few providers Brightlio recommends. For New Jersey colocation pricing, please contact us.

Centersquare

Centersquare’s New Jersey data center, is located in Secaucus. The facility boasts over 150,000 square feet of data centers space with 750 kW of solar power onsite. Centersquare was formerly called Evoque, before a rebranding in April 2024.

Reasons we like Centersquare:

• The facility boasts 100% historical uptime backed by a 100% SLA for power, bandwidth, and network connectivity.
• Higher power densities available of up to 300 Watts per square foot.
• Cloud connectivity via a partnership with Megaport.
• Centersquare has a national data center footprint, including major markets like Northern Virginia, Atlanta, Boston, Chicago, Dallas, Phoenix, and Irvine. Their footprint is growing with their acquisition of Cyxtera in January 2024.

Interserver

Interserver operates five data centers in New Jersey. This demonstrates their commitment to the market, and provides flexible options for their clients.

Why we like Interserver:

• They offer competitively priced web hosting, cloud, and VPS offerings for clients who need services other than colocation.
• All facilities meet Tier 3 or Tier 4 standards with 24×7 onsite support and security.
• They offer a West Coast data center in Los Angeles for clients that need geographic diversity.

Brightlio Delivers New Jersey Colocation Solutions!

If you are looking for a New Jersey data center, Brightlio can help! We are a broker of colocation services. We leverage our network of global data center partners to deliver a solution that best fits your needs and budget.

Additionally, we offer services including cloud, connectivity, and unified communications. This allows us to deliver a complete technology solution for your organization. We are committed to being your most trusted and responsive technology provider.

Get started today with Brightlio and get data center pricing for the New Jersey market fast!

If you liked this article, you may also enjoy our articles on other states:

• California Data Centers: Brightlio’s Ultimate Guide to Colocation in the Golden State
• Data Centers in Connecticut: Six Reasons to Colocate in the Constitution State
• Data Centers in Florida: Colocation in the Sunshine State
• The Iowa Data Center Market: Colocation In America’s Heartland
• Data Centers in Massachusetts: Six Reasons to Colocate in the Bay State
• Data Centers in Maryland: Innovation in The Old Line State
• New Jersey Data Centers: Powering the Digital Future of the Garden State
• Data Centers in New York: The Gateway to Colocation in the Empire State
• Data Centers in Oregon: 5 Reasons to Colocate in the Pacific Northwest
• Data Centers in Texas: Colocation in the Lone Star State
• Data Centers in Northern Virginia: Brightlio’s Guide to Colocation in the Mid-Atlantic
• The Ohio Data Center Advantage