How much does colocation cost per month?

Colocation costs range from $50-200/month for a single server (1U) to $1,000-2,500/month for a full rack (42U). Private cages start around $4,000/month. Pricing depends on power allocation, bandwidth, location, and contract length.

What is included in colocation pricing?

Most colocation pricing includes rack space, a base power allocation, basic bandwidth, physical security, and facility access. Additional costs may include extra power, premium bandwidth, cross-connects, remote hands support, and IP addresses.

Is colocation cheaper than cloud hosting?

For predictable, steady-state workloads, colocation is typically 30-50% cheaper than equivalent cloud hosting. The break-even point is usually around $3,000-5,000/month in cloud spend. Below that, cloud is often more economical.

What is the typical contract length for colocation?

Contracts typically range from 12 to 36 months, with longer terms offering 10-30% discounts. Some providers offer month-to-month options at a premium. The industry standard is 12-24 months.

Are there setup fees for colocation?

Some providers charge setup fees of $500-2,000 for initial installation, cable management, and configuration. Many providers waive setup fees for longer contract commitments. Always ask about this upfront.

How does power pricing work in colocation?

Power is typically priced per kilowatt (kW) per month, with rates ranging from $100-200/kW in Arizona. Some providers include a base power allocation in rack pricing and charge overages separately. Metered and fixed-rate options are common.

Colocation Pricing Guide - How Much Does Colo Cost? | Arizona Colocation

Colocation Pricing Guide

Understand what colocation costs, what's included, and how to get the best deal for your infrastructure.

Single Server

1U - 4U

$50 - $200 /month per U

Shared rack space
Basic power allocation
Shared bandwidth
Remote hands support
24/7 facility access

Best for: Small businesses, startups

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Quarter Rack

10U

$400 - $800 /month

10U dedicated space
2-3 kW power
100 Mbps bandwidth
Remote hands included
Private locking cabinet

Best for: Growing businesses

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Half Rack

21U

$700 - $1,500 /month

21U dedicated space
3-5 kW power
500 Mbps bandwidth
Remote hands included
Private locking cabinet

Best for: Mid-size companies

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Full Rack

42U

$1,000 - $2,500 /month

Full 42U rack
5-10 kW power
1 Gbps bandwidth
Unlimited remote hands
Dedicated power circuit

Best for: Enterprises, SaaS companies

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Private Cage

4+ Racks

$4,000 - $15,000+ /month

Fenced enclosure
20+ kW power
10 Gbps bandwidth
Dedicated cooling
Custom security access

Best for: Large enterprises, regulated industries

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What Affects Colocation Pricing?

Location

Major metro areas like Phoenix cost more than rural locations, but offer better connectivity.

Power Density

Higher power per rack (kW) increases costs. Standard is 5-8 kW; high-density can exceed 20 kW.

Bandwidth

Committed data rates, burstable bandwidth, and number of cross-connects affect monthly costs.

Redundancy Level

Tier 3 facilities cost more than Tier 2, and Tier 4 is the most expensive.

Contract Length

Longer commitments (12-36 months) typically offer 10-30% discounts over month-to-month.

Managed Services

Adding remote hands, monitoring, or managed firewall services increases costs.

Watch Out for Hidden Costs

! Setup fees - Some providers charge $500-2,000 for initial installation and setup.
! Cross-connect fees - Each physical connection to carriers or other tenants can cost $100-300/month.
! Power overages - Exceeding your power allocation can result in significant overage charges.
! IP address costs - Additional IP addresses may cost $1-5 each per month.
! Early termination fees - Breaking a contract early can cost the remaining balance of your term.

Frequently Asked Questions

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