Earlier quoted context omitted.
Jersey City still was fine and 50 miles can be problematic for certain types of backup (failover) protocols. Regular tape backups would be fine but secondary databases can't be that far away (at least not at the time). I remember my boss at WFC saying that the most traffic over the data lines was in the middle of the night due to backups - not when everybody was in the office.
Companies big enough will lay the fibre. 50-100 miles of fibre isn't much if you are a billion dollar business. Even companies like BlackRock who had their own datacenters have since taken up Azure. 50 miles latency is negligible, even for databases.
I know this because I was working on online systems back then.
I also vividly remember 9/11 and the days that followed. We had a satellite dish with multiple receivers (which wasn’t common back then) so had to run a 3rd party Linux box to descramble the single. We watch 24/7 global news on a crappy 5:4 CRT running Windows ME during the attack. Even in the UK, it was a somber and sobering experience.