What are the Factors that Affect Colocation Service Costs


Colocation has become an increasingly popular choice for companies looking to outsource their infrastructure and for good reason. Colocation data centers bring about many benefits for companies looking to increase network capacity, launch new applications, and much more. In addition, colocation is more cost effective than building a private data center. With these benefits in mind, it’s important to take into consideration certain factors that can affect colocation service costs.

Required Rack Space

With colocation, you’re renting a space to store and run your servers, so how much space you require will affect the cost. Modern servers don’t require much space, and narrower blade-style servers can help cut down on colocation costs as they take up less rack space. Depending on how much equipment you have, you will be charged either by the number of rack units or racks you require. It’s important to consider before-hand how much space you’ll require, and keep in mind that different servers might have different power requirements which can affect cabinet deployment. If you require a lot of space, you may even consider a caged area or a private suite.

Power and Cooling Requirements

Servers require a good deal of power to stay running and cooled, which directly correlates to the cost. However, this is the biggest draw to colocation, as their main function is to always power your equipment. Most providers offer various ways to purchase power, which is further influenced by the facility’s power usage effectiveness. When searching for a colocation provider, be sure to look into the reliability of their power backups. If you find a provider with really low prices, it’s likely you’re not going to receive the necessary power you need, and could ultimately cost you more long term.

Required Connectivity and Bandwidth

Connectivity is going to be another factor to consider when choosing a colocation provider. in order to keep your servers stable and running, you can’t skip on connectivity. You’ll want to search for a provider that offers more than one internet carrier in case one network goes down to decrease downtime. Factors that affect cost in regards to connectivity and bandwidth include the amount of connections needed for your servers, as well as how much bandwidth you require. Looking for a carrier that has multiple carriers that are BGP-bound is a smart idea.


Just like real estate, colocation costs can vary depending on location. High demand areas will likely cost more than a suburban location. Supply and demand can also affect pricing, so be sure to do your research and compare prices based off what you’re willing to spend.

Technical Support

Remote, 24/7 support is a major benefit of colocation. Most colocation providers offer support services as part of a package, or as an add-on service. The level of support or maintenance package you choose will affect your colocation costs, so be sure to do some shopping around and find a provider that will cover your needs at a price you’re comfortable with.

Why Choose Cloudsmart Colocation?

We are a SOC II certified data center who focuses mutually on security and innovation, with the understanding they are both equally important in protecting data services from cyber threats. Along with fortified controls and security, our customers appreciate the exceptional local support they receive from the Cloudsmart technical team. For over 25 years our customers rely on our fortified methodology, innovative technology and exceptional local support.

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