Data Center Feasibility Study in New Jersey

Data centers in New Jersey: a middle rank with a near-national mix

The state's data center record, FY2017 to FY2026, is 31 loans and $15.6 million, a volume that ranks 8 of 52 among states for the class. At home the picture is quieter: data center is 22 of 39 once every New Jersey class is ranked together, and the 0.99x location quotient shows that the state book weighs data centers almost exactly as the national book does. The most useful figure for a sponsor is the median loan of $185,000, which is 0.90x the class median across the country, so a New Jersey borrower is not asking for an unusually large or small sum compared with peers elsewhere.

Program mix, lenders and geography

The bulk of approvals sit between $100,000 and $375,000, a narrow, small-business band that points to colocation suites, managed hosting and server rooms far more than to hyperscale campuses. 30 of the loans are 7(a), only 1 is SBA 504, and no loan is franchised (0.00%). TD Bank, National Association holds 7 of the 7(a) loans with $735,000, and Northeast Bank holds 5 with $701,500, so no lender has a commanding position. Middlesex County leads with 9 loans, Somerset has 6, Bergen, Burlington and Monmouth have 4 each, and Cumberland, Essex, Hudson and Hunterdon have 1 each.

Outcome floors for this cell

SBA's cohorts for cancellation and charge-off are too small here to print a rate for either, so neither is shown and neither is zero. What a lender can say is limited to the volume, size and holder tables above, which describe the loans SBA lists as held today.

Tests for a New Jersey data center proposal

A study has to begin with the power and network connection, because a building that cannot get capacity at a known cost has no revenue to discuss. Next comes tenant demand: signed or credible customers, contract terms, and the churn a colocation operator can expect. Construction and equipment cost must be compared with a ticket that usually lands near $185,000 in this record, which means larger projects will need financing beyond what SBA files show. Debt service coverage should be tested against slower lease-up, and the appraisal will rest on stabilised rent per unit of power rather than on the shell.

The industry code that carries colocation also holds hosting and data processing companies, so some loans in this table finance businesses that rent no space to others. Read the numbers as an outline of the broader data processing sector in New Jersey.