Chapter 5
New York Tri-State Data Center Market
North America Data Center Trends H1 2026
3 Minute Read
3 Minute Read
Colocation Insights
- The New York and New Jersey data center market is defined by a persistent imbalance, as demand continues to rise while supply remains constrained.
- Occupiers seeking more than 5 MW of contiguous space have few options. This scarcity now defines the market and its pricing.
- With no meaningful supply relief in sight, rates continue to climb and there is little indication that this trend will change soon.
Market Trends
- Regulatory policy is tightening the market further. New York passed a state-level moratorium on data centers larger than 50 MW in July and New Jersey is currently considering passing a similar measure this year.
- As a result, bringing new large-scale capacity online will become increasingly difficult and further pressure existing inventory.
Notable Activity
- A major financial services firm acquired a 249,000-sq.-ft. data center, choosing to own its capacity rather than compete for scarce leasing opportunities.
- Iron Mountain announced a 23-MW battery energy storage system project to ease on-site grid constraints at its campus in Edison, New Jersey, reflecting a growing trend of operators investing in their own power resilience.
Figure 1: Historical Market Information
Figure 2: Historical Supply and Demand
Figure 3: % of Total Primary Market Inventory
Figure 4: Market Fuel Mix
Figure 5: Average Asking Rates
Report Contacts
William Hassan
Executive Vice President
Jonathan Meisel
Senior Vice President
Property Type
Data Center Solutions
Our lifecycle data center service offering consolidates your data center real estate, facilities and technology systems into a single operational and financial model.