Jabez Tan speaks to DCK about shifts in New Jersey data centre market

• May 4, 2016

Source: Data Center Knowledge

Once among the country’s most active wholesale data center markets, New Jersey is now seen as a place where retail colocation and other smaller-footprint services are going strong, while wholesale business in the traditional multi-megawatt sense is slowly drying up.

At least some of the lull in demand for large wholesale deals in New Jersey can be attributed to a slowing demand from the financial services industry, which has historically driven the bulk of demand there, according to the commercial real estate firm Jones Lang LaSalle. But there’s also a broader trend that runs beyond New Jersey: fewer and fewer companies are in need of big wholesale-type data center deployments. The users that have been driving the recent spike in wholesale leasing are the largest cloud service providers, and they tend to cluster in specific markets, such as Northern Virginia and Silicon Valley. New Jersey is not one of those markets.

“New Jersey has not been a very favorable market for wholesale,” Jabez Tan, senior analyst at Structure Research, which specializes in data center markets, said. “That’s been confirmed by a lot of players there.”