Comparing colocation quotes can feel like comparing apples to oranges. Different providers use different pricing models, bundle costs differently, and may or may not include key services in their headline rates. Understanding the components of colocation pricing is essential for making informed decisions.
Monthly Recurring Charges (MRC)
The MRC is the core of your colocation cost and typically includes: – Space: Charged per cabinet, cage, or suite. Pricing varies by market and facility tier. – Power: Usually the largest line item. Quoted as $/kW, this covers your metered or committed power draw. – Cooling: Often bundled with power costs, but some providers break it out separately. – Cross-connects: Physical network connections to carriers, cloud providers, or other tenants.
Non-Recurring Charges (NRC)
NRCs are one-time fees associated with provisioning your deployment: – Installation fees: Rack setup, power whip installation, cabling. – Custom build-out: For cages or suites requiring custom configurations. – Smart hands: On-site technician support for equipment racking and cabling.
Price Per kW: The Key Metric
The industry standard for comparing colocation costs is $/kW/month. This normalizes pricing across different providers and markets. However, be careful: – Ensure you’re comparing committed vs metered power pricing. – Ask whether cooling is included in the $/kW rate or billed separately. – Factor in PUE (Power Usage Effectiveness) — a facility with 1.2 PUE delivers more usable power per dollar than one at 1.5.
Hidden Costs to Watch
- Bandwidth and IP transit: Not always included. Verify what’s bundled.
- Remote hands labor rates: Hourly rates for technician support vary widely.
- Escalation clauses: Some contracts include annual price increases tied to CPI or fixed percentages.
- Early termination fees: Understand the penalties for breaking a long-term contract.
How Stacked AI Helps
We maintain a proprietary database of colocation pricing across 50+ markets. Our benchmarking tools normalize quotes so you can compare providers on a true apples-to-apples basis — saving you time and, typically, 15–30% on your total colocation spend.