• About Us
  • Partnership Opportunities
  • Privacy Policy

Data Center Frontier

Charting the future of data centers and cloud computing.

  • Cloud
    • Hyperscale
  • Colo
    • Site Selection
    • Interconnection
  • Energy
    • Sustainability
  • Cooling
  • Technology
    • Internet of Things
    • AI & Machine Learning
    • Edge Computing
    • Virtual Reality
    • Autonomous Cars
    • 5G Wireless
    • Satellites
  • Design
    • Servers
    • Storage
    • Network
  • Voices
  • Podcast
  • White Papers
  • Resources
    • COVID-19
    • Events
    • Newsletter
    • Companies
    • Data Center 101
  • Jobs
You are here: Home / Site Selection / New Players Boost Activity in New Jersey Data Center Market

New Players Boost Activity in New Jersey Data Center Market

By Rich Miller - November 8, 2017 Leave a Comment

New Players Boost Activity in New Jersey Data Center Market

An aerial view of the QTS Data Centers facility in Piscataway, New Jersey. (Photo: DuPont Fabros)

LinkedinTwitterFacebookSubscribe
Mail

We continue our series of stories on the leading geographic markets for data center space. Data Center Frontier partnered with DatacenterHawk to provide in-depth market reports on each city we profile. Read on for a special excerpt from the new New York/New Jersey Data Center Market Report. 

NY Data Center Market Report

Download the full New York/New Jersey Data Center Market Report.

Trends in Demand

The New Jersey market is made up of mostly larger colocation and single-tenant data center users. Typical requirements in the Northern New Jersey market are above 1 MW, but some companies entering the market will have requirements starting at 100 kW. Industries active in the Northern New Jersey market include financial, healthcare, media, and technology companies.

New Jersey is working its way back from a period in 2011-12 in which multiple service providers built new facilities at the same time, including new market entrants DuPont Fabros Technology (DFT), IO Data Centers and Sentinel Data Centers. This led to an oversupply condition in the market for wholesale space.

Despite a general lack of activity in recent years, the New Jersey data center market is starting to see an upswing in interest. Several major players in the industry, like CyrusOne and QTS Data Centers have recently entered the market, with others considering establishing a New Jersey presence. CyrusOne acquired Sentinel’s New Jersey operations in early 2017, while QTS acquired the former DFT facility in Piscataway in 2016 as well as a McGraw-Hill data center near Princeton in 2014.

The area’s proximity to other major markets in the region, as well as the connectivity to international markets in the UK and Canada, has made New Jersey an attractive location for international companies looking to locate in the US.

The Northern New Jersey data center market grew significantly following the economic downturn in 2009, as financial institutions looked to outsource their IT/ data center initiatives to retain capital.

Service providers have been among those filling data center space in New Jersey. In April, cloud infrastructure services provider ProfitBricks announced a five-year lease with Anexio, a tenant at the QTS data center in Piscataway. The company, which is a unit of Germany’s 1&1 Internet, chose to locate in the area due to the projected growth in cloud needs.

New Jersey Data Center Market

The Northern New Jersey data center market grew significantly following the economic downturn in 2009, as financial institutions looked to outsource their IT/data center initiatives to retain capital. A growing financial sector is a positive for the New Jersey data center market, due to its close proximity to Manhattan.

Trends in Supply 

The momentum for data centers slowed in 2013, when the New Jersey market faced an oversupply of space, particularly in the wholesale market. But the past year has seen a renewal of interest, including several providers bringing new supply online.

An interesting example is NJFX, a new player that reflects a trend in which colocation providers are building data centers at the sites where undersea fiber optic cables arrive in North America. NJFX is the largest and most ambitious of those projects. In late 2016 it opened 64,000 square foot Tier III data center built next to a cable landing station in Wall Township operated by Tata Communications. The 10-megawatt facility is about a mile from the ocean.

[clickToTweet tweet=”Data Center Frontier – The New Jersey Data Center market could soon see other new players.” quote=”Data Center Frontier – The New Jersey Data Center market could soon see other new players.”]

In March, 2017, just months after opening the new facility, NJFX announced plans to construct a second two-story data center on 48-acres of land adjacent to their existing facility. The new 80,000 SF data center will add to NJFX’s international connectivity services.

Meanwhile, CyrusOne has the opportunity to expand in Somerset. The former Sentinel New Jersey data center is about 95 percent leased, with the option to add up to 22 megawatts of additional capacity on adjacent land.

The market could soon see other new players. Aligned Data Centers is actively exploring expansion opportunities in major markets, including New Jersey, Northern Virginia, and Silicon Valley. Meanwhile RagingWire has expressed a desire to be in the top six U.S. data center markets, which suggests future sites in Chicago, Silicon Valley and New York/New Jersey.

Our New York/New Jersey Data Center Market Report also covers the following topics: 

  • Bouncing Back: Leasing Absorbs Space in New York Data Center Market
  • Financial Sector Drives Demand in New York Data Center Market
  • New Jersey Data Center Market Sees Return to Growth

For more on the New York/New Jersey data center market, we invite you to download the “Data Center Frontier Special Report: The New York/New Jersey Data Center Market,” sponsored by Digital Realty.  

LinkedinTwitterFacebookSubscribe
Mail

Tagged With: Data Center Markets, Digital Realty, New York/New Jersey Data Center Market, special report

Newsletters

Stay informed: Get our weekly updates!

Are you a new reader? Follow Data Center Frontier on Twitter or Facebook.

About Rich Miller

I write about the places where the Internet lives, telling the story of data centers and the people who build them. I founded Data Center Knowledge, the data center industry's leading news site. Now I'm exploring the future of cloud computing at Data Center Frontier.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Facebook
  • Instagram
  • LinkedIn
  • Pinterest
  • Twitter

Voices of the Industry

5 Ways to Mitigate Supply Chain Unpredictability and Labor Shortages in Data Center Construction

5 Ways to Mitigate Supply Chain Unpredictability and Labor Shortages in Data Center Construction Blake Weaver, Data Center Specialist at ProLift Rigging offers a list of ways to overcome supply chain challenges and labor shortages in data center construction. 

DCF Spotlight

The COVID-19 Crisis and the Data Center Industry

The COVID-19 pandemic presents strategic challenges for the data center and cloud computing sectors. Data Center Frontier provides a one-stop resource for the latest news and analysis for decision-makers navigating this complex new landscape.

An aerial view of major facilities in Data Center Alley in Ashburn, Virginia. (Image: Loudoun County)

Northern Virginia Data Center Market: The Focal Point for Cloud Growth

The Northern Virginia data center market is seeing a surge in supply and an even bigger surge in demand. Data Center Frontier explores trends, stats and future expectations for the No. 1 data center market in the country.

See More Spotlight Features

White Papers

busway

Busway: Safety and Reliability

Since its introduction within the automotive industry in the 1930’s through to its current widespread use in data centers, busway offers a high density, flexible power distribution solution for many applications. Get the new report from Anord Mardix that explores a fresh approach — integral coupling — which utilizes a unique male and female coupling system that is integral to the individual busway sections.

Get this PDF emailed to you.

We always respect your privacy and we never sell or rent our list to third parties. By downloading this White Paper you are agreeing to our terms of service. You can opt out at any time.

Newsletters

Get the Latest News from Data Center Frontier

Job Listings

RSS Job Openings | Peter Kazella and Associates, Inc

  • Account Executive - Data Center Solutions - Atlanta, GA
  • Mechanical Construction Sales Rep - Ashburn, VA
  • Account Executive - Data Center Solutions - Denver, CO
  • Data Center QA / QC Manager - Omaha, NE
  • Electrical Commissioning Engineer - Papillion, NE

See More Jobs

Data Center 101

Data Center 101: Mastering the Basics of the Data Center Industry

Data Center 101: Mastering the Basics of the Data Center Industry

Data Center Frontier, in partnership with Open Spectrum, brings our readers a series that provides an introductory guidebook to the ins and outs of the data center and colocation industry. Think power systems, cooling, solutions, data center contracts and more. The Data Center 101 Special Report series is directed to those new to the industry, or those of our readers who need to brush up on the basics.

  • Data Center Power
  • Data Center Cooling
  • Strategies for Data Center Location
  • Data Center Pricing Negotiating
  • Cloud Computing

See More Data center 101 Topics

About Us

Charting the future of data centers and cloud computing. We write about what’s next for the Internet, and the innovations that will take us there. We tell the story of the digital economy through the data center facilities that power cloud computing and the people who build them. Read more ...
  • Facebook
  • LinkedIn
  • Pinterest
  • Twitter

About Our Founder

Data Center Frontier is edited by Rich Miller, the data center industry’s most experienced journalist. For more than 20 years, Rich has profiled the key role played by data centers in the Internet revolution. Meet the DCF team.

TOPICS

  • 5G Wireless
  • Cloud
  • Colo
  • Connected Cars
  • Cooling
  • Cornerstone
  • Coronavirus
  • Design
  • Edge Computing
  • Energy
  • Executive Roundtable
  • Featured
  • Finance
  • Hyperscale
  • Interconnection
  • Internet of Things
  • Machine Learning
  • Network
  • Podcast
  • Servers
  • Site Selection
  • Social Business
  • Special Reports
  • Storage
  • Sustainability
  • Videos
  • Virtual Reality
  • Voices of the Industry
  • White Paper

Copyright Data Center Frontier LLC © 2021