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The Highs and Lows of US Server Colocation Pricing

Posted by QuoteColo on September 20, 2012 - Updated on July 06, 2016

Server colocation pricing varies widely across the domestic US. Server colocation can be defined as the provisioning of space for a client server(s) and telecom  equipment for use in a service provider (colocation provider) facility or data center. In this article, we will examine the 3 major cost components of server colocation pricing and how each varies across different parts of the domestic United States…

1) The amount of rack space used. Rack space comes in plenty of options – per U, 1/4 racks, 1/3 racks, 1/2 racks and full rack and cabinets. Some data centers offer private cage space and custom suites as well. Rack space tends to be more expensive in Northeast part of the country. ATT, CenturyLink and Savvis all operate data centers in both NY and MA. Full secure cabinets tend to run over $1200 a month with a standard 20amp 11v power feed. Some local/regional providers are able to get closer to the $1000 a month mark but make sure you do your due diligence.  In other markets, rack space is considerably cheaper. In the Southwest, some Texas based colocation providers offer full racks with standard 20 amp power for $499 a month! Smaller clients looking for per U options in TX can easily find deals starting at $40 to $60 a month.

2) The amount of power needed. For larger clients, power is typically 50% of the cost of running a colocation infrastructure. Once again,  the Northeast loses the battle on power pricing. In Boston, full cabinet clients see additional 20a power feeds costing $275+ a month. 208v power is even more expensive. Average commercial power in Massachusetts is 13.88 cents per Kilowatthour. In New York, the average commercial rate is 14.45 cents per Kilowatthour. Power is much cheaper in other parts of the country like the West South Central region. In Oklahoma, the average commercial rate is 7.13 cents per Kilowatthour. In the Pacific Northwest, Washington State comes in at 7.72 cents per Kilowatthour. Both Google and Facebook have built power dense data centers in the Pacific Northwest.

3) Bandwidth costs vary by metro region and which carriers are available. Low cost telecom carriers  like Cogent and Hurricane Electric offer bandwidth at less than $5 per Mbps in some locations. Bandwidth tends to be less expensive in the major metro and highly competitive markets of New York, Virginia and California.  Second tier cities which have less installed fiber are typically at the higher end of the bandwidth pricing spectrum.

Server colocation pricing has gone down significantly over the last few years. With all the available options, Clients looking to outsource their IT infrastructure have some great options to save money and to improve their bottom line.


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