Understanding Colocation Bandwidth: A Complete Guide

Bandwidth Basics for Colocation

Bandwidth is one of the most important considerations when choosing a colocation provider. Understanding the different pricing models and options can save you thousands of dollars per month.

Common Bandwidth Models

Committed Data Rate (CDR)

You commit to a specific bandwidth level (e.g., 100 Mbps, 1 Gbps) and pay a flat monthly fee. This is the most predictable model and works well for steady traffic patterns.

Burstable Bandwidth

You pay for a baseline commitment but can burst above it when needed. You're billed based on the 95th percentile of your usage, meaning the top 5% of traffic spikes are excluded from billing.

Per-GB Transfer

You pay for the actual data transferred. This works well for low-volume or highly variable traffic but can become expensive at scale.

Blended IP Transit

Traffic is routed across multiple upstream providers for optimal performance. This is the most common option and provides good balance of cost and performance.

Typical Pricing

• 100 Mbps committed: $200-500/month
• 1 Gbps committed: $500-1,500/month
• 10 Gbps committed: $2,000-5,000/month
• Per GB: $0.01-0.05/GB

Cross-Connects

Cross-connects are physical cables linking your equipment to other tenants or carriers within the data center. They typically cost $100-300/month each and provide the lowest latency connections possible.

Tips for Choosing

• Analyze your current traffic patterns before committing
• Consider burstable options if your traffic is spiky
• Ask about carrier diversity - multiple upstream providers
• Check for peering options at nearby internet exchanges
• Negotiate - bandwidth prices are often flexible