Primary Market: New York Tri-State

Colocation Insights

• 105.4 MW are under construction. Construction activity of this volume is unprecedented.
• The financial services sector continues to dominate New York Tri-State’s activity.
• Supply is very limited: all big players are currently out of space.

Market Trends

• Demand from hyperscalers in this market is beginning to rise, but there has been no investment or leasing activity yet.
• Power supply has not been reduced but is tracking inflation and overall price increases.
• Supply chain issues are still impactful. Many critical infrastructure parts have long lead times, with uncertain delivery timelines.

Notable Activity

• QTS is set to deliver 9 MW of capacity in Piscataway, NJ in the next 6 months.
• Google’s Subsea cable "Grace Hopper" is now online from the USA to UK and Spain, as of September 7, 2022.
• Equinix is considering adding new capacity in the area.
• CoreSite purchased 215 County Ave. in Secaucus for $62.5 million at the end of December.

Figure 1: Historical Market Information

Source: CBRE Research, CBRE Data Center Solutions, H2 2022.

Figure 2: Historical Supply and Demand

Source: CBRE Research, CBRE Data Center Solutions, H2 2022.

Figure 3: % of Total Primary Market Inventory

Source: CBRE Research, CBRE Data Center Solutions, H2 2022.

Figure 4: Market Fuel Mix

Source: Consolidated Edison.

Figure 5: Average Asking Rates

Source: CBRE Research, CBRE Data Center Solutions, H2 2022.