If you are unsure about what you are paying for when it comes to colocation hosting, here’s a clear breakdown of the factors that affect your colocation costs. Get a free quote today!



7 factors affecting colocation costs



7 Factors Affecting Colocation Costs

Colocation costs are determined by a number of different factors, including the amount of space you require, power, redundancy, cooling, security, technical support, and much more. Read on to discover how each can affect your total colocation cost.


1. The Amount of Colocation Rack Space You Require

Colocation, also referred to as colo, is similar to renting an apartment in an apartment building. With colocation, instead of living space, you are renting space to store and run your servers and hardware equipment inside a data center. Just like the size of an apartment affects the rent that you pay, the amount of space that you need to rent in the data center will also affect your colocation costs.

You will be charged by how much space your equipment takes up. If you require a smaller amount of space, then your price will probably be determined by how much space you take up on an individual colocation rack. You may need a full rack, a half rack, or a quarter rack of space.

If you have more equipment, then you could be charged by the number of full units or racks you will use. If you require a lot of space in a data center, then paying per square footage may be your best option.


colocation rack

Part of your colocation costs include the amount of space your equipment takes up – Image Source: Alexis Lê-Quôc from New York, United States [CC BY-SA 2.0 (https://creativecommons.org/licenses/by-sa/2.0)]


2. The Amount of Power You Need to Run and Cool Your Equipment Plus Redundancy

Servers require an incredible amount of power to run, keep cool, and provide for redundancy to make sure that you are always up and running. Supplying sufficient power is a big part of your total colocation costs.


One of the main benefits of using a colocation hosting facility is to make sure that you always have power to run your equipment even if the power goes out. When you are considering a colocation provider, make sure you look into the reliability of their power backups to ensure that it is sufficient to meet your needs. Paying less for a provider that doesn’t have the power you require is going to cost you more in the long run due to downtime.


Cooling costs are usually included with your power fees as they are such an integral part of keeping your servers functioning. Sometimes, cooling costs will be charged per square foot and other times they will part of the kilowatt rate you are paying. If you are on a metered contract, then you may end up paying a certain percentage extra on top of your metered charge.


colocation costs

Servers require power to run, keep cool, and for redundancy – Image Source: Florian Hirzinger – www.fh-ap.com [CC BY-SA 3.0 (https://creativecommons.org/licenses/by-sa/3.0)]


3. The Connectivity and Bandwidth You Require


Your connectivity is another crucial aspect to look at when choosing a colocation provider. If your business requires high-speed, high-functioning Internet to keep your operations stable, then you don’t want to skimp on connectivity. Choosing a data center that offers you access to more than one Internet carrier means that if one network is down, you have the option of using another.


Bandwidth is also another factor that affects your colocation costs. You want to choose a colocation provider that can provide you with the amount of bandwidth that you need, but you also don’t want to be paying for bandwidth that you don’t use. In general, it is usually more affordable and reliable to use a colocation facility in regards to connectivity and bandwidth than to try and provide this in your own facility.


colocation connectivity

Connectivity and Bandwidth are additional factors for colocation costs – Image Source: RobH [CC BY-SA 3.0 (http://creativecommons.org/licenses/by-sa/3.0/)]



4. Risk Mitigation to Keep Your Data Safe

Risk mitigation is like power redundancy in that it ensures that your equipment is safe. Part of your colocation costs goes towards purchasing the equipment, techniques, compliance, and technologies required to protect the data center and your data.


5. The Physical Security You Should Have

Another factor affecting colocation costs is the extra security provided in a colocation facility. Data centers that do colocation will have heightened physical security measures that you will be paying for that can include features such as:

  • 24/7 Monitoring
  • Restricted Access
  • Video Surveillance
  • Biometrics and Fob Access




A data center located in a city center will probably have higher colocation costs


6. The Location of the Data Center and Supply and Demand

The location of the data center can also influence colocation costs. A data center in a very busy downtown core such as Chicago or New York will probably cost more than one located in an outlying suburb.

Supply and demand also play a part in pricing. If the market is saturated with data centers, then the price will possibly be lower, as the data center will be competing for your business.


7. The Addition of Maintenance Packages and Technical Support

Maintenance Packages:

If you decide to add on a maintenance package, then that will affect your colocation costs too. Some data centers will provide you with a choice of maintenance options.

You can choose to do all of the maintenance of your hardware yourself, or you can pay an additional monthly fee to have staff at the data center do it for you. Simple maintenance tasks such as flipping a switch when needed may be included free of charge in your service package, whereas more complex maintenance will probably cost more.

Technical Support:

The level of technical support provided with your colo package will affect the price as well. Find out if the pricing includes 24/7, live, technical support and if the center is fully-staffed around the clock. You may find that support is an add-on service.


remote hands service

You may pay extra for maintenance and technical support



Is Colocation Right for Your Business?

Find out if colocation is right for your business. Click here to download your free copy of “The Ultimate Guide to Colocation!”

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Digital Service Consultants: Secure Colocation Hosting You Can Trust

Digital Services Consultants is a premier data center located just outside of Atlanta, Georgia in Buford, that offers you the safest IT solutions possible. Along with our top-notch server colocation, we provide a full range of internet- related and cloud services, including cloud backup, system monitoring, software hosting, dedicated email, website development and implementation, web hosting, e-commerce, security, and a variety of related products and services.

We also provide network support for Linus, Microsoft server and workstation platforms, Fortinet firewalls, and Cisco Systems. DSC has been a trusted name in the IT industry in Atlanta for more than 30 years. Contact us today for all of your internet-related requirements.


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DSC is proud to be part of a thriving Georgia community and we care so much about our community that we want to give something back. That is why we started the “Next Generation” training days. During training, our students learned about the history of CPUs and GPUs. The training focused on the performance and success of different models and brands and which ones excelled during their various time periods. You can access an audio recording of the training on the DSC website for free. Click here to listen!