When evaluating colocation providers, the headline $/kW rate only tells part of the story. A thorough total cost of ownership (TCO) analysis must account for a range of direct, indirect, and opportunity costs that significantly impact your bottom line.
Direct Costs Beyond Power
Cross-Connects and Network
Cross-connect fees — the physical links between your cabinet and carrier or cloud provider meet-me rooms — can add $200–$500/month per connection. For deployments requiring multiple carriers and cloud on-ramps, these costs add up quickly.
Remote Hands and Support
Most providers offer tiered support: – Basic: Included in MRC (visual inspections, power cycling) – Standard: $75–$150/hour for cabling, equipment swaps – Emergency: Premium rates for after-hours or urgent requests
Compliance and Security
If your deployment requires specific certifications (SOC 2, HIPAA, PCI-DSS), verify that the facility maintains these certifications and understand any additional costs associated with compliance audits or security measures.
Indirect Costs
Staff Travel
If the facility is far from your team, factor in travel costs for deployments, maintenance, and troubleshooting. A slightly more expensive facility near your team may be cheaper overall.
Migration Costs
Moving equipment to a new facility involves shipping, installation, potential downtime, and project management overhead. These costs can be significant for large deployments.
Opportunity Costs
A rigid contract that prevents you from scaling or adopting new technology costs you in ways that don’t show up on an invoice. Flexible terms — even at a premium — can save money long-term.
Building a Complete TCO Model
At Stacked AI, we help clients build comprehensive TCO models that capture all of these costs. Our analysis goes beyond the quoted rate to give you a true picture of what each provider will cost over the life of your contract.