New York Data Center Market Size
| Study Period | 2018 - 2030 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2030 |
| Historical Data Period | 2018 - 2022 |
| CAGR | 9.30 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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New York Data Center Market Analysis
New York had an installed capacity of around 292.26 MW in 2022, which is expected to increase to 539.56 MW by 2029, registering a CAGR of 9.3% during the forecast period.
- The Covid-19 pandemic positively affected the data center market. The pandemic led to the rapid acceptance of digitalization in the city. Since every industry suddenly became dependent on smart devices and the Internet, the data center market grew during the course of the pandemic.
- The New York data center market is going through a robust rebound, as in recent years, more data center leasing has progressively taken over vacant spaces in the city. The city has lately seen new market players and development in a new sub-market nearby Rockland County in New York.
- According to research published by JJL, continuous edge growth, and development in carrier hotels amongst content, carrier, and technology renter base is fueling the market growth in New York. Additionally, the city continues to see stable increases in healthcare, financial services, as well as technology and is expected to be back in constructing mode soon as greater deals shape down the already accessible inventory of data centers in the city.
- With the general commotion of the worldwide economy, deal flow in New York tapered slightly from the considerable contract volume in the year 2021. Rent rates, which had stayed on a descending course through 2021, saw an upsurge in pricing through various sizing brackets.
- With engagement ongoing apace, the New York data center market continues to grow at a stable pace, with sustained services directing the connectivity center that has developed nearby the financial and population center of New York City.
New York Data Center Market Trends
Tier III Data Center Are Anticipated to Show Noticeable Growth During the Forecast Period.
- The effect of repairs on service is minimal in Tier-III data centers. Clients receive N+1 (the amount required for functioning plus a backup) availability from a level III provider. Unplanned maintenance, like any other technology product, can cause problems for a level III provider.
- Tier-III data centers, which have an uptime of about 99.982%, are preferred by bigger businesses. This implies that the data center won't be offline for longer than 1.6 hours in a year. A Tier-II data center's intricate infrastructure, high redundancy, and considerable power and cooling lines considerably increase uptimes. All parts are connected to various electricity sources via wires. If one fails, another can be used to ensure that performance is not impacted.
- Without shutting down the system, maintenance and repairs can be made if required. Additionally, several protections are set up to protect the complete data center during a power outage. Comparatively to Tier-I and Tier-II data centers, Tier-III data centers offer considerably higher levels of reliability.
- Due to their significantly improved dependability and security, Tier-III data centers are frequently chosen by law enforcement agencies, fire departments, healthcare facilities, and any company seeking a reputation for solid and dependable service. Additionally, it is commonly selected as a performance and cost compromise due to its superior performance compared to Tier-II data centers.
- Many data center operators like Equinix have set up Tier-III data centers across the United States; Equinix NY4 New York Data Center is situated at 755 Secaucus Road in Secaucus, New Jersey. A total of 338,967 cubic feet of data center space and 18.5 MW of mission-critical power are available at Equinix NY4. NY4 provides low-latency access to a sizable electronic trading environment as a carrier-neutral facility. The complex has N+1 power and N+2 cooling redundancy, making it a Tier III facility.
- The growing deployment of mega data centers is driving the industry. A business can take advantage of local advantages like cheap energy costs, a pleasant climate, or the availability of alternative energy sources by using fewer mega data centers, depending on where they are located. Virtualization significantly improves system utilization and enables companies to use fewer power-guzzling servers and storage devices.
The BFSI Industry in the City Has Observed A Noteworthy Digital Transformation
- The banking, financial services, and insurance (BFSI) industry in the city has undergone a significant digital transformation in recent years. The increased penetration of smartphones and high-speed Internet has encouraged people to opt for digital banking, which has also led to the integration of powerful cloud tools to store and analyze data. Such developments will generate significant demand in data centers for processing the data generated through the baking sector's digital transformation, boosting the Unites States market.
- The proliferation of digital payments, online banking, digital storage, and virtualization in the country's BFSI sector is expected to increase the demand for cost-effective and energy-efficient data center solutions. It ensures the reliable and continuous availability of IT and digital banking services in a highly secure manner. It can also secure and encrypt all device communications and control user access to guard against errors and malicious intents.
- Additionally, the rise of innovative payment solutions like buy now pay later (BNPL), along with the expansion of the fintech sector in the country, is expected to generate a substantial amount of data. Consequently, this surge in data generation is driving the demand for data centers, which play a crucial role in storing and analyzing this data.
- For instance, new payment convenience concepts like BNPL are fast catching up in the United States, with promising adoption from the population in the city. The gaining popularity of such fintech platforms contributes significantly to generating data, demanding data centers for the same.
New York Data Center Industry Overview
Although quite a few data center service providers are operating in the New York data center market, a lot of operators choose to capitalize on large-scale organizations available in the market in other regions with lesser costs. Even though the concentration of industries in the New York urban area generates sufficient demand to inhabit a large facility, the costs of power by itself can stop data centers from making an investment in the area.
This has encouraged the development of a new sub-market for data centers in Rockland County, which is in the state of New York. The submarket is focused on Orangeburg, the town that is around 25 miles northward of Manhattan. In 2021, DataBank announced an important development in Orangeburg. The company bought a 34-acre property in the area. It plans to construct a data center with a capacity of 200,000 SF, 30 MW.
Furthermore, in May 2022, ColoHouse announced the expansion of its footprint in Orangeburg with a 1547 critical systems realty facility. This facility added 15,000 SF of capacity to the company's portfolio.
New York Data Center Market Leaders
Equinix Inc.
Rackspace Technology
Digital Realty Trust, Inc.
Cyxtera Technologies, Inc.
DataBank
*Disclaimer: Major Players sorted in no particular order
New York Data Center Market News
October 2022: Finastra recently made an announcement that Delta National Bank & Trust Company (Delta Bank), headquartered in New York, has chosen Fusion Payments To Go and Fusion Essence as their new retail core banking and payments solutions. This strategic decision by Delta Bank aims to modernize its digital banking infrastructure and enhance its capabilities in providing efficient and innovative banking services to its customers. With this conversion to Fusion Essence, the bank is moving its core from on-premise to a cloud-native software-as-a-service (SaaS) solution. Consumers will have access to more information and can automate various manual tasks, improving service quality and helping to support future business requirements.
May 2022: 1547 Realty announced the completion of its expansion project of a data center in Orangeburg, NY, which was developed to house space for 1547's latest acquisition of ColoHouse. The company ColoHouse is said to organize its bare metal selection in the facility to address the budding demand for enterprise and close vicinity to connectivity or data centers in New York City.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. KEY INDUSTRY TRENDS
4.1 Smartphone Users
4.2 Data Traffic per Smartphone
4.3 Mobile Data Speed
4.4 Broadband Data Speed
4.5 Regulatory Framework?
4.6 Value Chain Analysis
5. MARKET OUTLOOK
5.1 IT Load Capacity
5.2 Raised Floor Space
5.3 Number of Racks
6. MARKET SEGMENTATION
6.1 DC Size
6.1.1 Small
6.1.2 Medium
6.1.3 Large
6.1.4 Massive
6.1.5 Mega
6.2 Tier Type
6.2.1 Tier 1 & 2
6.2.2 Tier 3
6.2.3 Tier 4
6.3 Absorption
6.3.1 Utilized
6.3.1.1 Colocation Type
6.3.1.1.1 Retail
6.3.1.1.2 Wholesale
6.3.1.1.3 Hyperscale
6.3.1.2 End-User
6.3.1.2.1 Cloud & IT
6.3.1.2.2 Telecom
6.3.1.2.3 Media & Entertainment
6.3.1.2.4 Government
6.3.1.2.5 BFSI
6.3.1.2.6 Manufacturing
6.3.1.2.7 E-Commerce
6.3.1.2.8 Other End-Users
6.3.2 Non-Utilized
7. COMPETITVE LANDSCAPE
7.1 Company Profiles
7.1.1 Digital Realty Trust, Inc.
7.1.2 DataBank
7.1.3 CoreSite
7.1.4 CyrusOne
7.1.5 Equinix Inc.
7.1.6 Cyxtera Technologies, Inc.
7.1.7 Rackspace Technology
7.1.8 Tierpoint LLC
7.1.9 Evocative
7.1.10 Telehouse
7.1.11 H5 Data centers
7.1.12 Hivelocity
7.1.13 Colocrossing
7.1.14 365 data centers
7.1.15 Cogent
- *List Not Exhaustive
New York Data Center Industry Segmentation
A data center is a physical room, building, or facility that holds IT infrastructure used to construct, run, and provide applications and services and store and manage the data connected with those applications and services.
The New York data center market is segmented by DC size (small, medium, large, massive, and mega), tier type (tier 1&2, tier 3, and tier 4), absorption (utilized (colocation type (retail, wholesale, and hyperscale)), end-user (cloud & IT, telecom, media & entertainment, government, BFSI, manufacturing, e-commerce, and end-user industries), and non-utilized).
The market sizes and forecasts are provided in terms of value (MW) for all the above segments.
Frequently Asked Questions
What is the current New York Data Center Market size?
The New York Data Center Market is projected to register a CAGR of 9.30% during the forecast period (2024-2030)
Who are the key players in New York Data Center Market?
Equinix Inc., Rackspace Technology, Digital Realty Trust, Inc., Cyxtera Technologies, Inc. and DataBank are the major companies operating in the New York Data Center Market.
What years does this New York Data Center Market cover?
The report covers the New York Data Center Market historical market size for years: 2018, 2019, 2020, 2021, 2022 and 2023. The report also forecasts the New York Data Center Market size for years: 2024, 2025, 2026, 2027, 2028, 2029 and 2030.
New York Data Center Industry Report
Statistics for the 2024 New York Data Center market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. New York Data Center analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
