The Contract Variables That Drive Your Real Bill
Most procurement teams negotiate the rack price. That’s the wrong number to focus on.
The actual cost driver is the combination of terms buried in contract schedules and addenda. Here’s what to audit before you sign:
Power billing model
Committed kW locks you into a monthly power charge regardless of utilization. Fine for steady workloads, expensive if you’re ramping. Metered billing charges per kWh consumed: cheaper at low utilization, unpredictable at scale. Ask for both models and run the math against your actual draw profile.
Usable vs. allocated power
A 10kW circuit doesn’t deliver 10kW of usable power. NEC 80% continuous load rule means a 10kW breaker delivers ~8kW of continuous draw. Factor this into every kW-per-rack spec.
Bandwidth billing model
Unmetered isn’t always unmetered. Read the acceptable use clause. Fair-use caps, 95th-percentile billing, and “burst pricing” at full port speed are common.
Cross-connect pricing
$/month per cross-connect plus MMR (meet-me room) access fee. In primary markets (NYC, Ashburn, One Wilshire), this can add $200–$600/month per interconnection needed. Get the full rate card before signing.
Remote hands rate card
“24/7 remote hands included” usually means “one reboot per month.” Anything beyond visual check and power cycle is typically billed hourly: often $150–$300/hr in premium markets.
Contract escalators
Annual MRC increases of 3–5% are standard and buried in schedule addenda. On a 3-year term, that’s a 9–15% increase in your monthly bill by year three. Model it.
Term optionality
12-month terms exist even in high-demand markets, if you know where to look and have a broker relationship with the provider. We find them.