New Jersey Data Center Market Size
| Study Period | 2018 - 2030 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2030 |
| Historical Data Period | 2018 - 2022 |
| CAGR (2024 - 2030) | 4.90 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
New Jersey Data Center Market Analysis
The New Jersey Data Center Market is expected to register a CAGR of 4.90% during the forecast period.
A data center is a specific area inside a structure or a collection of designs that house computer systems and related equipment, such as networking and storage systems.
- Most data center activity in the New Jersey market may be found in the I-95 Corridor in Northern New Jersey and Route I-287 in Central New Jersey (about 30 miles to the southwest). A cable landing station in Wall Township has become a destination for subsea data traffic from Europe and South America, providing a less expensive route into the Northeast than stations in New York City. The Northern New Jersey colocation industry has risen significantly in recent years because of its closeness to New York City, robust infrastructure, and favorable business climate.
- The emergence of New Jersey as a cable landing destination is part of a more significant shift in global data flows, fueled by cloud computing and "data gravity" as more businesses rely on data analytics and artificial intelligence.
- Today's AI gold rush is propelling growth even further. The potential of generative AI to alter businesses in 2023 is predicted to boost demand for processing capacity in data centers after the rapid development of AI tools such as ChatGPT. AI is expected to be used in half of all cloud data centers by 2025, with increasing data utilization and computing efficiency benefits.
New Jersey Data Center Market Trends
Cloud Computing in BFSI is anticipated to hold a significant share
- To deliver innovative services, ensure a convenient and customized customer experience, and create shareholder value, BSFI companies must constantly reimagine their business to capitalize on emerging technology-led disruption, create shareholder value, and build a long-term competitive advantage on new channels.
- The data center model has changed thanks to cloud computing. Traditional data centers, which run on hardware and require a lot of room, are no longer practical. As a result of the commercialization of storage, computing, and network resources by cloud providers, hyperscale cloud-based data centers have emerged. These public cloud service providers directly own and manage these data centers.
- They can offer their services for much less money than on-premise data centers. Everything is controlled digitally in data centers that utilize the cloud. Cloud computing has completely transformed how data centers are managed nowadays. Although cloud computing has many benefits in data centers, the three most important are agility, efficiency, and scalability.
- Data centers are the foundational infrastructure for cloud-based digital technologies, supporting anything from video streaming and online gaming to enterprise applications for remote and in-office work, 5G networks, and Internet-of-Things networks. Switch Inc., a Dallas-based operator of data centers, was acquired by Boca Raton, Florida-based DigitalBridge Group Inc., and investment services provider IFM Investors for $11 billion in December 2022.
Rising Adoption of Hyperscale Data Centers
- Demand for cloud services has increased due to the pandemic, requiring continuous data backup, and digital transformation is speeding up in all industries. Hyperscale data centers have seen an increase in investment due to the cloud transition. In direct proportion to the growth in data consumption and use of the cloud, the necessity for data centers has increased tremendously.
- As the use of big data grows, new business requirements will emerge, and data center resources will be needed more frequently. New Jersey and New York are significant IoT and big data hubs where more data will be generated. As a result, hyperscale development in these areas has occurred to preserve the data. The adoption of IoT-based devices is rapidly increasing in various industries, including manufacturing, shipping, healthcare, and lifestyle.
- Furthermore, hyperscale data centers offer several benefits over traditional data centers, including improved scalability, flexibility, and cost-effectiveness. Hyperscale data centers can be rapidly scaled up or down based on demand, making them ideal for businesses with fluctuating needs. They also utilize advanced automation and monitoring systems to optimize efficiency and reduce costs.
- According to recent data, nearly two-thirds of the world's population - around 5.3 billion people - will have internet access by 2023, up from 3.9 billion just three years ago. Demand for hyper-data-center-based computing and connectivity will continue to rise as more people connect to the Internet. Analysts predict that over 29 billion of these - wearables, smart appliances, and autonomous vehicles, among many other Internet of Things (IoT) devices - will connect to networks in the next two years, with machine-to-machine (M2M) traffic accounting for more than half of all connections by 2023. The massive increase in global internet traffic over the next 2-5 years will remain the primary driver of hyper-data center demand.
New Jersey Data Center Industry Overview
The New Jersey Data Center Market is fragmented in that key vendors are utilizing inorganic growth techniques, such as mergers and acquisitions and strategic partnerships, to increase their market share. Some market players are Digital Realty Trust, Inc., DataBank, Equinix Inc., and CoreSite.
With the acquisition of vXchnge's 3MW asset in Secaucus, NJ, H5 Data Centres entered the New Jersey market. The addition was part of a seven-asset portfolio transaction with assets in Nashville, Philadelphia, Pittsburgh, Portland, New Jersey, St. Louis, and St. Paul.
IN June 2022, Lightpath established a new fiber line from New York City to Ashburn, Virginia. This 300-mile fiber cable will be added to Lightpath's 19,000-mile network that spans the tri-state area and New England. Xtel Communications expanded its portfolio with the addition of a third data center, the first in New Jersey. The telecom and cloud company, which has offices in Texas and Pennsylvania, provides high-availability active-active network design.
New Jersey Data Center Market Leaders
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Digital Realty Trust, Inc.
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DataBank
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CoreSite
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CyrusOne
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Equinix Inc.
*Disclaimer: Major Players sorted in no particular order
New Jersey Data Center Market News
- July 2024 - The Courier Post and Burlington County Times report NEP Real Estate of Vineland NJ Urban Renewal aims to develop a data center campus on land off South Lincoln and Sheridan avenues. The company aims to develop six two-story data centers totaling 2.4 million sq ft (222,970 sqm) across four phases. No end-user has been secured for the site, which is located close to a substation.
- June 2024 - Demand for data center space in New Jersey is surging on the back of Big Tech and the artificial intelligence arms race. And while a lack of electrical capacity may keep a lid on new supply, the owners of existing facilities are now racing to expand their footprints. It’s also a new opportunity for those with developable land — at least the kind that can support the complex, highly specialized needs of AI platforms and other innovations.
New Jersey Data Center Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. KEY INDUSTRY TRENDS
4.1 Smartphone Users
4.2 Data Traffic per Smartphone
4.3 Mobile Data Speed
4.4 Broadband Data Speed
4.5 Regulatory Framework
4.6 Value Chain Analysis
5. MARKET OUTLOOK
5.1 IT Load Capacity
5.2 Raised Floor Space
5.3 Number of Racks
6. MARKET SEGMENTATION
6.1 By DC Size
6.1.1 Small
6.1.2 Medium
6.1.3 Large
6.1.4 Massive
6.1.5 Mega
6.2 By Tier Type
6.2.1 Tier 1 & 2
6.2.2 Tier 3
6.2.3 Tier 4
6.3 By Absorption
6.3.1 Utilized
6.3.1.1 By Colocation Type
6.3.1.1.1 Retail
6.3.1.1.2 Wholesale
6.3.1.1.3 Hyperscale
6.3.1.2 By End User
6.3.1.2.1 Cloud & IT
6.3.1.2.2 Telecom
6.3.1.2.3 Media & Entertainment
6.3.1.2.4 Government
6.3.1.2.5 BFSI
6.3.1.2.6 Manufacturing
6.3.1.2.7 E-Commerce
6.3.1.2.8 Other End User
6.3.2 Non-Utilized
7. COMPETITVE LANDSCAPE
7.1 Company Profiles
7.1.1 Digital Realty Trust, Inc.
7.1.2 DataBank
7.1.3 CoreSite
7.1.4 CyrusOne
7.1.5 Equinix Inc.
7.1.6 Cyxtera Technologies, Inc.
7.1.7 Evocative
7.1.8 Cologix
7.1.9 H5 Datacentre
7.1.10 T5 data centers
7.2 Market share analysis (In terms of MW)
7.3 List of Companies
New Jersey Data Center Industry Segmentation
A data center is a physical room, building, or facility that holds IT infrastructure used to construct, run, and provide applications and services and store and manage the data connected with those applications and services.
The New Jersey center market is segmented by dc size (small, medium, large, massive, mega), tier type (tier 1&2, tier 3, tier 4), absorption (utilized (colocation type (retail, wholesale, hyperscale), end user (cloud & IT, telecom, media & entertainment, government, BFSI, manufacturing, e-commerce)), and non-utilized).
The market sizes and forecasts are provided in terms of value (MW) for all the above segments.
New Jersey Data Center Market Research Faqs
What is the current New Jersey Data Center Market size?
The New Jersey Data Center Market is projected to register a CAGR of 4.90% during the forecast period (2024-2030)
Who are the key players in New Jersey Data Center Market?
Digital Realty Trust, Inc., DataBank, CoreSite, CyrusOne and Equinix Inc. are the major companies operating in the New Jersey Data Center Market.
What years does this New Jersey Data Center Market cover?
The report covers the New Jersey Data Center Market historical market size for years: 2018, 2019, 2020, 2021, 2022 and 2023. The report also forecasts the New Jersey Data Center Market size for years: 2024, 2025, 2026, 2027, 2028, 2029 and 2030.
New Jersey Data Center Industry Report
Statistics for the 2024 New Jersey Data Center market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. New Jersey Data Center analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
New Jersey Data Center Market Report Snapshots
