Colocation Pricing: A Comprehensive Guide to Colocation Costs

If you’re new to the world of colocation services, you may have questions about colocation pricing. Colocation is a straightforward way to maintain a high-performance computing landscape using your company’s equipment and secure many of the benefits associated with a traditional data center while keeping costs under control.

As mentioned previously, colocation is often an affordable alternative to a traditional data center. But the exact cost does vary depending on several factors. With that in mind, here’s a breakdown of what impacts colocation pricing.

Colocation Pricing - Hundred Dollar bill in a puzzle form

A Comprehensive Guide to Colocation Pricing


The physical location of a colocation facility does play a role in pricing. Colocation data centers located in high-cost states or cities often charge more than those positioned in lower-cost areas. While that may make it seem like choosing a colocation provider with locations in more remote regions is wise, that isn’t always the case. That strategy can introduce issues with latency and performance and may come with connectivity or bandwidth challenges especially with edge computing applications.

Instead, it’s best to strike a balance when it comes to location. Selecting a provider in an area with robust infrastructure is often beneficial. However, exploring parts of the country that are inherently lower cost is also potentially wise.


Another primary factor in colocation pricing is the physical space a company’s equipment takes up in a facility. The more room they require for their equipment, the higher the overall cost.

Generally, colocation pricing is measured in cabinets or racks, depending on the arrangement. Some are measured in rack units (RUs), which is a standardized way to measure the space taken up by specific networking or computing equipment, such as servers.


In many cases, power consumption is a significant part of colocation cost, and it’s one that’s potentially hard to anticipate. Electricity pricing varies dramatically between states, regions, and even cities. Along with charging for the power consumed by equipment placed in the facility by client companies, clients also have charges related to electricity usage associated with keeping an optimal environment, such as cooling.

It’s also critical to note that some colocation facilities are far more energy-efficient than others. Those that embrace energy efficiency have lower operating costs. As a result, clients usually experience a savings by selecting a greener provider over one that’s less efficient.

Connectivity and Bandwidth

Colocation facilities ensure that equipment placed by client companies has the necessary connectivity and bandwidth to connect with various networks and transit data at suitable speeds. Both of these offerings impact pricing in several ways. For example, the number of cross-connects, supported transfer rates, and total bandwidth play a role in colocation cost.

How connectivity and bandwidth charges are levied can vary by colocation facility. Some may use flat-rate or metered options for bandwidth, for example. As a result, companies need to explore the available services and compare them to their connectivity needs to determine which approach is most cost-efficient.

Setup and Support

With colocation services, it’s common to encounter specific setup-related fees. There can be a charge for initially connecting company equipment or hooking up new servers when the need arises. Usually, these are managed with straightforward pricing based on the type of equipment and the required connections.

Some colocation services also offer support services to client companies. These solutions eliminate the need for client organizations to manage all hardware-related challenges on their own. Instead, on-site technicians can assist, simplifying ongoing maintenance and various other tasks.

Looking for a Leading Colocation Services Provider at an Affordable Price?

At Colo Solutions, we offer an array of colocation services designed to meet the needs of companies looking for reliable and robust computing and data storage environments. If you’d like to learn more about how Colo Solutions can provide you with the right solution at a reasonable price, contact us today.


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