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Data Centers in New York: The Gateway to Colocation in the Empire State
If you’re searching for a retail colocation partner for your business, data centers in New York are a great place to start. With a population of almost 20 million, the state is home to many international and local businesses in constant need of colocation services. Brightlio explores six compelling reasons why New York colocation facilities are a fit for your business.
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The Network Infrastructure Provides Low-Latency Connectivity
A robust network of fiberoptic cables connects the New York City colocation facilities to the rest of the world. They allow customers with New York colocation facilities low-latency access to global markets. The city is also home to multiple submarine cable systems.
Fiber networks include:
- Hudson Fiber Network: Data centers in the state can directly access the Hudson Fiber Network in New Jersey. The facility is approximately 2 hours away from New York and offers high bandwidth and low latency connections to data centers and their customers. Hudson Fiber prioritizes network efficiency and affordable internet services, making it easy for colocation facilities to thrive. The facility also offers network services like metro connect, data transport, and network management services.
- TAT-14 Network Cable: This undersea cable is over 9,000 miles long, and it connects New York to key international markets like the United Kingdom, Germany, Netherlands, France, and the western coast of Denmark. Businesses interested in serving these locations can get low-latency connectivity by colocating in New York City.
- Long Island Cable System: Long Island is the epicenter for subsea connectivity opportunities in New York. The city is strategically located along the Atlantic Ocean, which makes it a magnet for subsea landing stations. Long Island’s cable network connects New York colocation facilities to the UK, Germany, the Netherlands, Florida, South America, and other parts of Europe.
Data centers partner with the 1025 Connect carrier hotel to access network connections in the city. This facility is an interconnection spot for New York colocation facilities because multiple subsea cable networks converge here.
The carrier hotel also provides affordable network connections because it does not pay a recurring cross-connect fee. Other submarine cables in the center include AC-2, AEConnect-1, WALL-LI, and Mid-Atlantic Crossing (MAC). Because of the state’s network infrastructure, data centers and their customers can access reliable, low-latency global connectivity.
Finally, major hyper-scale cloud providers like Amazon Web Services (AWS), Google Cloud, IBM Cloud, and Microsoft Azure have availability zones in New York. The state also has numerous cloud on-ramps.
New York Data Center Industry Serves a Global Audience
The New York data center industry ranks among the top ten data center markets in the US. There are 52 data centers in the state and many more in neighboring New Jersey, serving local and international businesses. One of the most popular data centers in the state is the Equinix Data Center.
The company has many subsidiaries serving different parts of New York. Some of them include Equinix NY1, NY5, NY6, NY11, and Equinix NY13 Elmsford data center.
Other popular providers include:
- Digital Realty Data Center (8th Avenue, 10011 New York)
- Cyxtera New York Data Center (165 Halsey Street, 17102 Newark, NJ)
- Telehouse America Data Center (33 Whitewall Street, 10004, New York)
- Evoque New York Data Center (15 Enterprise Ave North, 07094 Secaucus, NJ)
- Epsilon New York Data Center (60 Hudson Street, 10013 New York)
- Evocative Data Centers (1 Enterprise Ave N, Secaucus, NJ)
Because the state has a lot of competitive data center providers, customers can quickly get affordable deals with the highest quality of service.
The State Is Famous for Its Stable Power Grid and Renewable Energy Supply
To support its large power consumption requirements, New York has 11 utility companies that supply electricity to the state and its residents. The average cost of power in the region is 21 ¢/kilowatt-hour (kWh), which is 10% lower than the national average.
The National Grid is the state’s largest utility company, supplying a mix of renewable and fossil-generated power. For example, in 2021, 46% of New York’s in-state utility-generated electricity was from natural gas, while three-tenth of the state’s total electricity was from renewable energy, particularly hydroelectricity.
Because the state has many utility companies, data centers can access competitive pricing plans and quality service with a provider that matches their needs.
Renewable Energy Profile
New York has a mix of renewable energy sources that supplements the state’s national electricity grid. In 2021, it ranked as the fifth state in the nation with the most electricity generated from renewable sources. It also ranked as the sixth state to generate renewable energy via utility-scale installations. These alternative energy sources include hydroelectricity, biomass, solar, and wind energy.
Furthermore, New York is one of the highest hydroelectricity producers in the US. The state is home to the 2,500 megawatts (MW) Robert Moses Niagra hydroelectric power plant. This facility produces the largest share of hydroelectricity in the region. New York also has about 2,200 MW of wind-generated power from 29 wind utility farms. Furthermore, the state is set to deploy over 9,000 MW of wind capacity by 2035.
New York’s Renewable Energy Consumption
In 2021, 22% of the renewable energy in New York came from hydroelectricity, followed by wind (3%), solar (3%), and biomass (2%). New York adopted the Clean Energy Standard (CES) portfolio to build a sustainable energy system. This initiative requires utility companies and retail electricity suppliers to acquire at least 50% of their energy from renewable sources by the end of 2030.
As a result of these efforts, data centers have access to reliable, affordable renewable energy that guarantees business sustainability and quality service. Moreover, businesses that colocate in New York can meet their sustainability goals without suffering from power-related issues.
The State Has a Favorable Economic Climate
New York provides a lot of economic incentives that attract data centers and their partners. In this section, we’ll explore three significant incentives that attract a lot of data centers to the state.
- Tax Breaks: Colocation facilities are exempt from paying a sales tax on any equipment, machinery, or tangible property they acquire for data center purposes. They also receive tax breaks on fiber optic cables used to build systems for internet data centers. Additionally, data centers can access tax rebates when they purchase properties that help with fire control (fire suppression equipment and alarms included).
- Business Support Programs: New York’s START-UP NY program helps new and expanding businesses access tax-based incentives and economic partnerships. Data centers that are expanding into New York’s data center industry have the opportunity to operate tax-free for up to ten years. To qualify, the state requires that the facility partner with a university or generate new jobs that contribute to the development of the local community.
- Dedicated Government Support: New York has a dedicated website where the government provides the resources, support, and community businesses need to thrive. Data centers and their intending customers can visit the web page to understand which tax incentives they are entitled to. They can also access a list of credits they qualify for when contributing to the state’s employability system.
All these economic incentives allow data centers to provide excellent and consistent colocation services to local and international clients.
The State Provides Protection Against Harsh Weather
Compared to other data center markets like Los Angeles, New York experiences a medium risk of natural disasters. Despite this, the region is more prone to hurricanes that can disrupt data center activity.
The Office of Emergency Response coordinates all regional emergency responses to protect data centers from harsh weather. The agency runs a series of programs, including hazard identification, loss prevention, planning and training of staff members, operational emergency responses, technical support, and recovery assistance.
As such, colocation facilities in New York can always partner with the state’s emergency body to monitor weather changes that may affect the data center activity.
Leading New York Data Centers
When considering New York for your colocation needs, it’s essential to consider the best providers to ensure optimal services and support. Below are a few options Brightlio recommends:
Equinix’s New York data centers provide a blend of services geared towards finance-focused cloud providers and ad-tech firms. Equinix’s regional data centers span prime locations including Newark, Bergen, Manhattan, Secaucus, Carteret, and Elmsford. Notably, the Secaucus campus extends unparalleled access to the vibrant ecosystems of New York Carrier Hotels through efficient fiber cross connects.
- Nine New York metro area data centers to choose from.
- Direct access to the New York Stock Exchange and other important financial exchanges.
- Direct ramp to cloud providers including AWS, Azure, Google, and Oracle, plus multiple global and domestic interconnection options.
- Multiple space options including racks, colo rooms, private cages, and suites.
Hivelocity’s NYC1 colocation facility is located on Staten Island. The carrier neutral site boast over 60 on-net providers.
Why we like Hivelocity:
- Available networks from leaders such as Hurricane Electric, Cogent, and NTT, ensuring unparalleled connectivity. With up to 100G Peering interconnection points to internet exchanges like NYIIX and DE-CIX.
- Hivelocity guarantees power with a stellar 100% uptime commitment. Their infrastructure utilizes diverse utility power feeds originating from both New York and New Jersey. There’s also a provision of an N+1 diesel generator redundant power system and a commitment to a 48-hour onsite diesel fuel supply.
- The site meets multiple compliance standards, including SOC 2 Type 1, HIPAA, PCI, and ISO 27001.
- Hivelocity offers other managed infrastructure services, including managed hosting, dedicated servers, DDoS protection, and private cloud.
- Multiple space configurations including single server colocation.
If you are interested in colocation pricing for these or other facilities, contact Brightlio.
How Brightlio Can Help With Colocation Pricing in New York
At Brightlio, we provide competitive colocation pricing for New York and other data center markets. Our global data center partner network connects customers with suitable colocation facilities that match their unique needs and budget.
As a global telecommunication broker, we provide additional services to help your business build a robust and reliable IT infrastructure. Some of our services include network connectivity, unified communications, SD-WAN, and cloud solutions.
Contact the team for the best pricing today.
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