Data Center Feasibility Study in the New York-Newark-Jersey City, NY-NJ Metro Area

Data centers are an odd fit for loans of this size, and the New York-Newark-Jersey City area is where the pattern shows most plainly. It ranks first of 169 metro and micro areas on this class, with 67 approvals from FY2017 to FY2026 worth $24.1 million, yet data centers place only 19 of 39 among the classes in the area itself. The location quotient of 1.08x is barely above parity. The median loan, $150,000, is 0.73x the national figure for data centers, and the central loans fall from $50,000 to $250,000.

A scattered geography and bank-heavy list

Nassau County, NY leads with 12 loans, then Middlesex County, NJ with 9, and Kings, New York and Suffolk Counties, NY with 8 each, with Somerset County, NJ at 6. TD Bank, National Association is listed with 15 loans at $868,600 together, Northeast Bank (ME) with 8 for $1.3 million, Newtek Bank, National Association with 7 for $780,000, and, last, JPMorgan Chase Bank, National Association, 5 for $740,000. The lender totals shown run from $740,000 to $1.3 million.

Years and loss floors

FY2017 gave 11 loans for $1.5 million. FY2020 added 5 loans for $3.3 million, FY2023 8 loans for $3.8 million, and FY2024 14 loans for $2.0 million, the busiest count. FY2025 brought 11 loans for $5.5 million and FY2026 6 for $5.7 million. Cancellations came to at least 10.0% of the FY2017 to FY2024 group, with or without the undisbursed loans in the count. The program counts and the FY2018, FY2019, FY2021 and FY2022 rows are masked, and no charge-off rate is printed for this area, since the cohort is under 30 loans. A masked entry is neither zero nor a quiet estimate. Franchise share reads 0.00%.

Limits of the class, and the study's task

Hosting and data processing firms share this code, and a colocation building is indistinguishable from a hosting service in it, so the record mixes colocation and hosting businesses. A study for a facility in this area has to define the product: colocation space, managed hosting or an edge site. Power is the central test, with utility capacity, redundancy and the price of electricity weighed against contracted tenants. Cost needs a line for cooling and backup generation. Debt service coverage should rest on signed tenant commitments, with a vacancy case, and the appraiser must separate the building from the equipment and the business. Counties here follow the July 2023 area definitions.