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New Jersey Data Center Market Size (2024 - 2029)

The New Jersey Data Center Market is experiencing growth driven by its strategic location and infrastructure, particularly along the I-95 Corridor and Route I-287. The state's emergence as a cable landing destination for subsea data traffic enhances its appeal, offering cost-effective connectivity to the Northeast. This growth is further accelerated by the increasing reliance on cloud computing and artificial intelligence, which are driving demand for greater processing capacity in data centers. The market's expansion is indicative of broader global data flow shifts, as businesses increasingly depend on data analytics and AI technologies.

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Market Size of New Jersey Data Center Industry

New Jersey Data Center Market Summary
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

New Jersey Data Center Market 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 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.

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New Jersey Data Center Market Size Summary

The New Jersey Data Center Market is poised for steady growth, driven by the increasing demand for cloud services and the rise of artificial intelligence technologies. The market is characterized by its strategic location along the I-95 Corridor and Route I-287, which facilitates significant data center activity due to proximity to New York City and robust infrastructure. The emergence of New Jersey as a cable landing destination for subsea data traffic enhances its appeal, offering a cost-effective alternative to New York City. The shift towards cloud computing has transformed traditional data center models, leading to the rise of hyperscale cloud-based data centers that offer agility, efficiency, and scalability. These centers are crucial for supporting the growing needs of digital technologies, including video streaming, online gaming, and enterprise applications.

The market landscape is fragmented, with key players engaging in mergers, acquisitions, and strategic partnerships to expand their presence. Companies like Digital Realty Trust, Inc., DataBank, and Equinix Inc. are actively enhancing their market share through such strategies. The pandemic has accelerated digital transformation, increasing the demand for continuous data backup and cloud services, which in turn has fueled investment in hyperscale data centers. As the adoption of IoT devices and big data analytics grows, New Jersey is positioned as a significant hub for these technologies, necessitating further development of data center resources. The market's growth is also supported by advancements in automation and monitoring systems, which optimize efficiency and reduce costs, making hyperscale data centers a preferred choice for businesses with fluctuating demands.

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New Jersey Data Center Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION

    1. 1.1 By DC Size

      1. 1.1.1 Small

      2. 1.1.2 Medium

      3. 1.1.3 Large

      4. 1.1.4 Massive

      5. 1.1.5 Mega

    2. 1.2 By Tier Type

      1. 1.2.1 Tier 1 & 2

      2. 1.2.2 Tier 3

      3. 1.2.3 Tier 4

    3. 1.3 By Absorption

      1. 1.3.1 Utilized

        1. 1.3.1.1 By Colocation Type

          1. 1.3.1.1.1 Retail

          2. 1.3.1.1.2 Wholesale

          3. 1.3.1.1.3 Hyperscale

        2. 1.3.1.2 By End User

          1. 1.3.1.2.1 Cloud & IT

          2. 1.3.1.2.2 Telecom

          3. 1.3.1.2.3 Media & Entertainment

          4. 1.3.1.2.4 Government

          5. 1.3.1.2.5 BFSI

          6. 1.3.1.2.6 Manufacturing

          7. 1.3.1.2.7 E-Commerce

          8. 1.3.1.2.8 Other End User

      2. 1.3.2 Non-Utilized

New Jersey Data Center Market Size FAQs

The New Jersey Data Center Market is projected to register a CAGR of 4.90% during the forecast period (2024-2030)

Digital Realty Trust, Inc., DataBank, CoreSite, CyrusOne and Equinix Inc. are the major companies operating in the New Jersey Data Center Market.

New Jersey Data Center Market Report Snapshots

New Jersey Data Center Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2030)