DataBank Raises $456 Million in 4th Securitization in 3 Years. Read the press release.

A Simple Guide To Colocation In New Jersey

A Simple Guide To Colocation In New Jersey

Colocation has become a popular solution as it delivers the benefits of both the public cloud and in-house data centers. Broadly speaking, colocation works in much the same way regardless of where it is used. There are, however, generally some details that vary from one area to another. With that in mind, here is a quick guide to colocation in New Jersey.

An overview of the New Jersey business landscape

Strategically positioned in the northeastern corridor of the United States, New Jersey has easy access to important metropolitan areas such as New York City and Philadelphia. It also has a robust economy in its own right.

The state is probably best known for its pharmaceutical and biotechnology industry. It is a major center for research and development and has long played a pivotal role in global healthcare advancements. It’s also a key financial hub, thanks to its proximity to Wall Street plus its own financial districts.

Other key industries include manufacturing, logistics, telecommunications, and technology. Again, these sectors all benefit from New Jersey’s strategic location and its well-developed infrastructure both physical and digital.

New Jersey has also developed an attractive growing startup ecosystem, with initiatives to encourage entrepreneurship and innovation. Incubators and accelerators provide resources and mentorship to emerging tech companies, particularly those with a focus on sustainability.

The benefits of colocation in New Jersey

The five main benefits of colocation in general are:

  • Geographic distribution
  • Convenience
  • Scalability with customizability
  • Cost-effectiveness
  • Predictable costs

Here is a quick guide to how each of these benefits applies to colocation in New Jersey specifically.

Geographic distribution

Hosting data and/or services near your users can deliver a significant business advantage. At a minimum, it will allow you to process data with minimal delay. It may also help with compliance and/or reputation management. Both regulators and consumers often prefer for their data to be kept near them. In simple terms, this makes it easier to ensure that it is treated appropriately.

The benefit of geographic distribution is particularly relevant to colocation in New Jersey. The state is the fifth-smallest state in land area but ranks 11th in population. This makes it the most densely populated of all 50 U.S. states. In fact, New Jersey is currently the only U.S. state in which every county is defined as urban by the U.S. Census Bureau.

The fact that New Jersey is so densely populated means that there is a very strong argument for having an IT base there to serve local users. Using colocation in New Jersey gives a business real-world representation in the state without the capital expenditure of implementing an in-house data center.


Many businesses simply want their IT infrastructure to run seamlessly in the background in much the same way as their utilities. Even if businesses have the budget for an in-house data center, they do not want the hassle of building and/or running one.

In particular, they do not want the hassle of dealing with security, business continuity, and disaster recovery. Although New Jersey is, overall, a very safe environment, it does still have areas of concern. For example, real-world crime is a potential issue wherever you go, particularly in cities. Likewise, most places have at least some environmental issues that can impact data center operations.

New Jersey has a relatively benign climate but does experience a lot of rain and snow. It also experiences very occasional tropical storms, hurricanes, tornadoes, and earthquakes. These are very rare but their impact can be severe (e.g. Hurricane Sandy in 2012). It’s therefore essential to plan for them. With colocation in New Jersey, most of the responsibility for this lies with the colocation vendor.

Scalability with customizability

Colocation is not as scalable as the public cloud. It is, however, scalable enough for most businesses, most of the time. Furthermore, it can be combined with public cloud usage for even more elasticity. Likewise, it is not as customizable as an in-house data center but it is customizable enough for most businesses, most of the time. It is certainly a lot more customizable than the public cloud.


Using colocation in New Jersey removes the need for companies to make the significant upfront investment of purchasing real estate in one of the most expensive parts of the USA. At the same time, it allows them to benefit from the long-term cost-effectiveness of storing and/or processing data in-house rather than in the public cloud.

Predictable costs

The cost of colocation in New Jersey is based on factors that are usually fairly easy to define or at least estimate. These include:

  • Location and physical space requirements
  • Tier level
  • Power requirements and energy efficiency
  • Network connectivity options
  • Security and compliance
  • On-site support and SLAs
  • Contract length and flexibility

This means that costs are likely to be far easier to predict and hence budget for.

Colocation New Jersey

If you are looking for colocation services in New Jersey, DataBank is an excellent choice. DataBank has two state-of-the-art data centers in New Jersey, which combine to offer 56,950 square feet of raised floor space, and 3.8MW critical IT load. Learn more about DataBank’s New Jersey data centers.

Share Article


Discover the DataBank Difference

Discover the DataBank Difference

Explore the eight critical factors that define our Data Center Evolved approach and set us apart from other providers.
Download Now
Get Started

Get Started

Discover the DataBank Difference today:
Hybrid infrastructure solutions with boundless edge reach and a human touch.

Get A Quote

Request a Quote

Tell us about your infrastructure requirements and how to reach you, and one of the team members will be in touch.

Schedule a Tour

Tour Our Facilities

Let us know which data center you’d like to visit and how to reach you, and one of the team members will be in touch shortly.