26 Apr

Colocation Cost Pricing Guide for Server Hosting

If you’re a business owner, you likely understand the importance of a reliable IT infrastructure. But managing servers and hardware on-premises can be costly and time-consuming. That’s where colocation comes in – a smart alternative that enables you to rent space in a secure facility provided by a third-party data center. You can keep ownership of your server while enjoying the benefits of a professionally managed environment. But how do you know how much it costs? Fear not – this guide will give you a comprehensive overview of colocation cost pricing for server hosting.

1. Factors Affecting Colocation Cost Pricing

There are a few variables that can influence the cost of colocation, such as location, the level of security you require, and the amount of power you’ll need. Data centers in major metropolitan areas tend to be more expensive than those in smaller towns or rural areas. Additionally, colocation providers offer different levels of security standards to their clients, which can impact the price. Finally, the amount of power you’ll need for your server hardware can affect price, with more power-intensive setups costing more.

2. Calculating Rack Space Cost

The most common pricing metric for colocation is rack space. A rack is a standardized unit of data center storage where servers are placed. The typical rack size is 42U, which is roughly 6 feet tall. Prices for rack space vary depending on the market you are in, but the average cost sits around $1000/month. If your server requires less space, you can opt for half or quarter racks, which can reduce your cost.

3. Power Costs

Power usage can also affect the cost of colocation. Depending on the provider, you’ll be charged for electricity usage in one of two ways. One method is based on the 1U model, which charges by the amount of power a specific device uses. The other pricing method is based on the total number of watts consumed. Rates for power can range from $60 per circuit per month to $500 per circuit per month, depending on the data center and location.

4. Cross Connections Cost

A cross-connection is the link that connects your hardware to the data center’s network. You’ll most likely pay an additional fee for cross-connecting to a carrier network, which can vary widely based on the size of the carrier and the network. Some data centers offer bundled cross-connection packages, and others provide a flat fee per cross-connect. Expect to pay between $50 and $500 per month for cross-connects, depending on the provider.

5. Extra Features and Fees

Finally, some additional features might come with extra fees. For example, you may need on-site IT support, which could cost extra. Another possible expense is remote hands, which provide 24/7 technical support for your hardware. And, topping off the list of additional fees, you might need to shell out extra for redundancy backups, such as redundant power sources, network connections, and more.


When it comes to colocation, it’s essential to know what you’re getting into regarding pricing. Be aware of the factors that impact pricing, such as location, security requirements, and power consumption. Determine how much rack space you need, and understand how power usage affects pricing. Keep in mind that cross-connections, added features, and redundancy backups may come with additional fees. Armed with this information, you’ll be able to make an informed decision about colocation pricing for your server hosting needs. For more information about colocation pricing in your area, please contact us.

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