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Why the Data Center Market is Moving to Orangeburg, NY

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The data center market is seeing growth in Rockland County, NY, driven by the increasing price of electricity and incentives in New York and New Jersey. 1547 Realty offers data center customers turnkey solutions with built-to-suit designs that ensure the highest availability and up-time. The Orangeburg facility is in an optimal location for latency-sensitive applications, business continuity, and disaster recovery. With 2N and N+1 power available, the Orangeburg, NY data center is ready to meet the most stringent requirements.

Data Center Trends in Orangeburg

As data and technology become increasingly important in our lives, the need for data centers also grows. The data center growth in the Rockland County market is due to its prime location and competitive incentives. Just 0.2 miles from the New Jersey border and 22 miles from Midtown Manhattan, the Orangeburg data center is in a prime location for companies not only looking to have cost savings, but also reaping the benefits of being near the hub, New York City.

In addition to its strategic location, the 1547 Orangeburg data center offers ample access to power and meets or exceeds the critical network requirements for connectivity. It also has a state-of-the-art building design that meets the highest standards of infrastructure requirements. With all of these benefits, it’s no wonder that the data center market is moving to Orangeburg. Occupying 23 acres of land at 1 Ramland Road, the 232,000-square-foot 1547 facility is quickly becoming a hub for data center activity in the region.

The price of gasoline and electricity are two of the most important factors when deciding where to locate a data center. According to the U.S. Bureau of Labor Statistics, gasoline prices in the New York-Newark-Jersey City area averaged $4.323 per gallon in August 2022, up from $3.314 per gallon one year earlier. Meanwhile, electricity prices averaged 24.9 cents per kilowatt hour (kWh), up from 22.6 cents per kWh paid in August 2021. The average price of utility (piped) gas, at $1.755 per therm is greater than last August’s price of $1.321. All these increases mean that businesses are progressively looking to relocate their data centers to areas where they can take advantage of lower utility rates. Orangeburg, for example, avoids getting stuck with unnecessarily high utility bills. Plus, businesses are attracted to this area because of its proximity to New York City – which is a major hub for data traffic.

Incentives for Data Centers in Orangeburg

One of the main reasons that data centers look at Orangeburg is because of the competitive incentives that are available compared to other locations. The normal sales tax rate of 8.375% in Rockland County does not apply, which saves data center customers over $80,000 on a $1 million purchase of new equipment. In addition, the 1547 Orangeburg data center is eligible for sales tax abatement, which further reduces the cost of doing business in the region.

Being in an optimal location for latency-sensitive applications, business continuity, and disaster recovery is not the only reason that the data center market looks at moving to Orangeburg. The competitive incentives and state-of-the-art infrastructure make it an ideal location for data centers of all sizes. 1547 Realty is proud to be a part of this growing market and looks forward to helping data center customers thrive in this vibrant community. With its prime location, ample access to power, and competitive incentives, the Orangeburg data center is quickly becoming a leading destination for data center activity in the region. If you’re looking for a state-of-the-art facility that can meet your critical infrastructure needs, contact 1547 Realty today to learn more about our data center solutions.