Even as a mature market, the US continues to grow its positioning as a data center powerhouse. More than 373MW of new data center capacity are now under construction. According to CBRE, the total data center market is expected to grow 13.8% this year.
One of its most important cities for data centers is New York City. As a dense landing site with submarine cable systems connecting from Europe, the city is a leading hub for finance, banking and technology. This has significant influence on the need for connectivity and data centers.
The New York Market
According to Cloudscene, New York is the United States’ fifth most comprehensive market for data centers, service providers, and network fabrics. A big factor into this is the sheer number of companies headquartered in the region. Especially within the financial services, healthcare, media, pharmaceuticals, and telecommunications industries.
The financial services industry is continuing to largely impact the data center marketplace in the city. For instance, modern trading platforms demand very low latency. These companies need colocation services that are not only secure with high availability, but also able to provide low latency, high performance interconnectivity.
Following the 2008 recession and Hurricane Sandy in 2012, many organizations in North America have outsourced to colocation and wholesale data center providers. They enjoy greater benefits which include better business continuity and CAPEX reduction.
Hurricane Sandy left several data centers without power for an extended period of time. Many data centers themselves suffered huge damage due to flooding. During the crisis, over 8 million customers lost power over 21 states. Disaster planning has been taken more seriously in recent years. Organizations are realising the value in a colocation strategy with disaster recovery and support.
Investments in Internet of Things (IoT) and other smart technologies within healthcare, IT, entertainment, cloud services and media sectors are growing. These will require significantly more colocation and carrier capacity in New York, which is driving the market forward.
For enterprises, colocation reduces the burden of maintaining on-premise data centers and improves adaptability. The right colocation facility depends on location, connectivity, and deployment size requirements. Enterprises can gain the opportunity to harness wider connectivity options, expand their reach and work with new partners.
Increasing demands for cost-effective solutions and disaster recovery requirements are also the major factors driving growth in the US data center colocation market, and this is only set to increase.
Power Your Organization in an Interconnected Era
Colocation is more than just racks and space for businesses today. It can be an efficient and flexible foundation for supporting their digital transformation journey. Uncertainty drives the need for greater scalability in digital infrastructure and models to match the needs of transforming ICT environments.
In a world that can change overnight, organizations need a simple solution for deploying, connecting and managing applications and services. When an organization chooses the right colocation provider, it is able to grow without limits and better manage its risk.
Our New York facility provides immediate access to North America and unlocks new market opportunities. Epsilon Colocation is located in the famous 60 Hudson Street building which serves as a carrier hotel. Our facility has vertical fiber riser that connects to network service providers and colocation providers. It gives customers wide connectivity options to meet their business demands. It is a strategic hub that provides access to New York metro areas as well as domestic and international connectivity.
We serve a variety of national and global companies, from the leading telecommunications carriers to financial companies. These businesses rely on us to connect beyond colocation and around the world. We give our customers instant connectivity to new and existing networks, data centers, clouds, internet exchanges and business partners with on-demand network orchestration capabilities.
Learn more about our New York Colocation.