Companies like to be geographically close to their data centers. As a result, the New York City financial center has been the primary driver of growth in data centers in New Jersey.
This in turn creates a variety of challenges for new entrants and companies already operating in the area. At the present time, NJ has 49 colocation centers in 14 areas across the state with the highest concentration 24 located in Hudson Country.
NJ Data Center Advantages
With the Internet of Things (IoT) and big data coming to the forefront, there is heavy demand for increased colocation. So how do you select a site to keep the Garden State growing? What are the benchmarks? What are the challenges?
What draws businesses to the state is the fact that New Jersey provides lower rent options, better tax breaks ($27 million incentive for creating 350 new jobs), and a regulatory process that’s streamlined for a decade. According to site selection professional John H. Boyd, “what distinguishes states in this region are incentives. They are the new battleground for economic development, especially here in the Northeast.”.
When it comes to NJ data center site selection, the three main challenges are pretty obvious::
- Uninterrupted power supply
- Community support, and
- Endurance in bad weather.
Uninterrupted Power Supply
With the never ending demand for capacity, there is always an endless need for expansion.
So when selecting a site for an NJ data center, colocation entities need to find spaces where there is a guarantee of uninterrupted power supply.
The success of the colocation center is directly impacted by the quality of the utility supply in the building, so it’s imperative to find a location that can meet current supply demands with room to accommodate increased demand in the future.
In order to find the right building and location, colocation center real estate teams develop strong and close working relationship with utility companies in the area and local governments.
Community Support
Before signing an extended lease at any location, it is important for a data center to have the backing of the community.
Without the support of the residents in the area, the project can be disrupted abruptly.
Companies like Amazon have faced this issue in the past where the community was against the creation of a substation to support the data center. That brought that project to halt.
Endurance in Bad Weather
It’s imperative that colocation centers are located in areas that are well prepared for natural disasters. Colocation customers are rightly seeking only the most reliable and resilient locations, so there will also be increased competition on this front.
Finding the perfect fit for an NJ data center can be a cumbersome task. But there is also a simpler way to get through this process:
- Find pre-identified locations
- Land-banked locations
- Build on land already owned by the company
As the demand for colocation rises, so will the challenges faced by data centers. Having the right criteria and solutions for challenges will ensure the success and future of colocation in the state.
What challenges have you experienced when selecting a colocation site? Let us know your thoughts in the Comments box below.
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