The Data Center Migration Is On
Impact Of Proposed New Jersey Financial Transaction Tax
New York City has built its reputation on being "the city that never sleeps." For decades (and perhaps longer), New York has been the place to be for anything, and almost everything. Whether it was entertainment, food, culture, or something less glamorous such as telecommunications, the Big Apple tempted people and businesses to take a bite.
But there were a few spots on the apple, to be sure, and the flooding and subsequent shutdown of multiple data centers in lower Manhattan in the wake of Hurricane Sandy emphasized the need for companies to have a backup facility. So, many set up shop just across the river in New Jersey.
Now change has come again, this time fomented by a global pandemic on the one hand, and the threat of rising financial transaction taxes on the other. This one-two punch is causing many enterprises to look further afield for their data center operations, whether across the river or to the center of the country.
With the threat of a financial transaction tax in New Jersey, NASDAQ, for instance, announced last week that its PSX financial exchange will be testing out a move to Chicago the week of October 26. We anticipate seeing more companies surrounding trading platforms and financial services firms following suit and looking for space outside of the metro New York area.
While this move may seem sudden, in reality, it’s part of a broader trend toward building out secure IT infrastructure to backup or replace existing sites supporting Wall Street in markets such as Chicago and Cleveland. Boosting this move is the high cost of housing IT infrastructure someplace such as New York City combined with the increased remote workforce of 2020. The latter fact, in particular, means that organizations, particularly financial services firms, are no longer tethered to keeping on-prem data center infrastructure and are free to seek out multi-tenant data centers around the country.
Not surprisingly, we see that during this data center migration, organizations are looking for cloud connectivity options for distributed, hybrid IT; access to low-latency, public cloud on-ramps; carrier-neutral options; rapid provisioning; and secure, remote access. Cyxtera's data centers offer all this and more. Our three New Jersey data centers also allow proximity to major exchanges without the high cost associated with being in downtown Manhattan, while our purpose-built Chicago data centers are centrally located in the Midwest data hub and offer ultra-low latency for mission-critical production or disaster recovery needs of modern enterprises.
Cyxtera's ORD1 facility (located within Chicago’s 350 East Cermak) offers native connectivity into Digital Realty’s meet-me-room on the second floor. This allows companies located within our data center to connect to any of the financial exchanges and rich network ecosystem located within the building, including the Chicago Stock Exchange, Chicago Board Options Exchange, Chicago Mercantile Exchange, and dozens of other companies, brokers, and traders in the financial ecosystem. (There’s still time to secure some of the last remaining power capacity in the building. Click here to let us help address your data center relocation plans during this uncertain time.)
As one of the world’s largest interconnection providers, Cyxtera’s carrier- and cloud-neutral, densely connected global data center footprint and thriving partner ecosystem deliver the local-, global- and cloud-connectivity options you need for today’s distributed, hybrid IT. We continuously invest in and innovate our offerings to provide reliable low-latency access to almost 700 networks via 240 network service providers and multiple cloud on-ramps. Customers can choose from various leading on-ramp providers (including Megaport, Zayo, and CenturyLink), not to mention discover potential service providers and business partners through our Cyxtera Marketplace.
Regardless of where you are on your data center journey, if you consider making a move, consider making it with Cyxtera. With 62 data centers in 29 markets, you’re just a port away from our ecosystem of cloud on-ramps, network, and IT service providers. Our well-connected campuses facilitate fast, reliable connections between our customers and across the metro area to your facilities and key interconnection venues. We’re just over the river, across town and around the country and all over the world.