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(Colocation Pricing 2020 Guide) Understanding Data Center Prices


Making the decision to colocate servers using a third party data centre is only the first step in a longer process of finding the proper partner. Cost is a consideration when a business begins to evaluate colocation facilities. But colocation pricing can be complicated. Standard features in one facility may be considered”add-on” services at another, creating the illusion that one supplier is much more expensive than another. It is important to know what goes into the quoted prices, when making colocation pricing comparisons.

colocation server

Table of Contents

Power and Cooling Requirements


Bandwidth Needs

On-Site Service

Business Intelligence Software

Evaluating Your Colocation Prices

Crucial Questions for Your Colocation Provider

The market for colocation data centres has witnessed enormous growth in the last few decades and shows no signs of slowing. When most businesses make the transfer to third party data centers for operations-related reasons (redundancy, greater network capability, launching new applications), cost remains a crucial factor for crucial decision-makers. Although having your very own on-premises facility sounds attractive, most companies suffer sticker shock after asking”How much does it cost to build a data center?” And look for an alternative solution. colocation server pricing presents immense savings compared to building a data center that is personal, however there are a range of factors when calculating colocation expenses to take into consideration.

How To Know Your Colocation Pricing

  1. Power and Cooling Requirements

The energy demands of colocation gear compose a significant part of any colocation expenses. Different colo providers offer you an assortment of methods to purchase electricity (by the circuit, by the kilowatt( or as metered power), and also the price of those plans is generally affected by the centre’s power utilization effectiveness (PUE). More energy-efficient data centers and their efficiencies can pass to customers, providing better pricing on energy and cooling. These costs are spread across all colocation customers, but cabinet installation and server functionality could have an effect on pricing. State of the art centers often incorporate the latest cooling technology (such as elevated floors or liquid cooling) into their infrastructure to help drive colocation down prices.

Customers must keep in mind that local electrical and building codes can restrict power usage, so a supplier’s advertised upfront costs may not reflect the true amount of usable power. When looking at data centre pricing, it is important for clients to keep in mind that their power requirements may increase in the future, so they should make sure their prospective expansion requirements are met by that a facility.

  1. Rack Space

All of the talk about power and connectivity demands often overlooks the exact physical character of colocated servers. Every server needs to be slotted into rack area in a facility, and while contemporary servers take up little space, there’s just so much room available from the cabinets of the information floor. Server colocation pricing is based on either the amount of racks utilized or the amount of square footage colocated assets consume. However, colocation cost per rack might not be the sole option available. In several cases, better value is provided by full rack colocation pricing. Some providers allow customers to lease or purchase cabinets or cages. Colocation cage pricing, of course, varies based on the specifications of the cabinet.

Not all stand space is created equal, of course. Using thinner blade-style servers might help businesses cut down on their colocation prices because each unit will take up less rack space. However, they should keep in mind these high-density servers can have different power requirements and electricity distribution choices, which might affect cupboard deployment.