New Jersey Grabs Data Center Real Estate From New York


New York City’s infrastructure problems may be pushing more companies to open data centers in New Jersey. According to commercial real estate expert Rick Drescher, a growing portion of new companies in the metro area are choosing to open data centers in New Jersey due to better infrastructure and lower costs.

Jersey City, New Jersey
Jersey City, New Jersey

New York City’s infrastructure problems have been a long-running issue in the local technology community. The cost of wiring buildings is expensive for small and mid-sized companies, and the physical space is limited or in need of costly renovations to be useful.

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“Bringing power to a building is not that easy. You may have to get permits and there are other costs that can add up to millions,” said Mr. Drescher, who serves as managing director of technical services at Studley. “Northeast New Jersey has fiber and brand new data centers opening since it is so close to the city. Companies don’t mind the extra distance. Power is less expensive in New Jersey.”

Infrastructure obstacles and bringing fresh ideas to the market were among the discussions at Building the Digital City, a multidisciplinary conference organized by the Center for Urban Real Estate at Columbia University last year. Real estate and technology industry professionals gathered at the November event to discuss the future of New York City and solutions to tech problems facing it.