The Cost of Colocation in Data Center

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Cost of Colocation in Data Center 1

To get the most affordable Cost of Colocation in Data Center, request a colocation quote. Colocation may be the best choice for companies wishing to rent data center tier space in order to achieve their business goals. But when choosing to collocate a server, there are a lot of practical factors to take into account as well as varied colocation costs to compare.

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We will define colocation, discuss colocation pricing, and discuss which organizations stand to gain the most from collocating a server in this post.

What Is Colocation?

Colocation hosting, sometimes known as “colo”, is a service in which company ships or drops off servers to a company like Arzhost, which then racks the servers in a secure data center and connects them to power and networking.

Colocation data center hosting offers companies a climate-controlled, safe location that is manned by technicians to handle any necessary physical server activities and is patrolled round-the-clock by security agents (remote hands).

What Is Colocation

To provide the most dependable server hosting environment, these facilities have redundant cooling, networking, and power systems.

Collocating vs. Renting a Server

Both leasing and collocating a server have advantages. Here is a few examples of the Cost of Colocation in a Data Center:


  • Free server hardware upfront
  • No need to replace any hardware
  • 24-hour technical help is available.
  • At any time, switch to a new server without having to pay for new hardware.


  • Availability of more specialized hardware
  • Set up private networks and unique network setups on your own
  • Keep servers in separate racks without allowing access to any other users.
  • Purchase actual servers to use as a company asset.

Some businesses may prefer to spend the time and money to buy server hardware and collocate servers, depending on the particular hardware needs of the industry. If a company doesn’t have specific hardware needs or constantly upgrades its servers, renting a server may make more sense financially.

How much do collocating servers cost?

The cost of server colocation varies depending on the application and starts at $79 per month for a single server and goes up to $599 per month for a 42U rack.

How much does collocating servers cost

We advise seeking an estimate to acquire an accurate price for your needs as colocation pricing can vary depending on the number of units, data center location, power data center requirements, and bandwidth needed.

Cost of Colocation in Data Center, the following elements will be taken into account when creating a quote for colocation or managed colocation:

Read More: tier data center classification

1: Rack Space Units for Data Centres

The number of rack units required in one of our data centers is one of the key factors that affect colocation costs. The cost of colocation in Data Center space is often one of the higher costs on the invoice.

Servers kept in a data center, in contrast to conventional desktop PCs, are built using a rack-mountable casing. This makes it possible to host more computers in the data center and optimizes the allocation of cooling and power.

Rack Space Units for Data Centres

In this image, a data center room is filled with servers of various sizes. One unit, or “one unit”, servers make up the majority of the second rack from the left. Additional servers and switches in this rack are in the 2U and 4U sizes.

The average server is 1U or 2U in size, occupying one or two rack units. However, older or larger servers may be larger and require 4U. Because each server requires a different number of rack units. The cost of colocation server space will vary according to how many servers you want to host in the data center tier list.

Colocation is normally billed per rack. Which can be either a half-rack or a full-rack.

Read More: data center redundancy tiers

2: Power Prices

Another expense to take into account when comparing colocation rates is the amount of power that each server in one of our data centers’ tier uptime needs. The number of power drops to the rack and the number of amps needed for the cabinet is considered when calculating the monthly energy cost.

Power Prices

Current and projected power usage should be carefully taken into account when selecting a power setup. We provide popular electrical configurations, including 20amp/120V and 30amp/230V.

Various factors, including the electrical feeds being supplied to the cabinet, will affect the maximum watts that a rack can support. The wattage of a typical rack will range from 2-3 kW, depending on the installed equipment.

Read More: different tiers of data centers

3: IP Address and Bandwidth

When creating a colo pricing quote, the amount of monthly network transfer needed from the internet service provider for all colocation servers and any required public IP addresses will be taken into account. Each rack-mounted server will typically receive two 1Gbps network connections, with the 95th percentile of monthly bandwidth usage charged in Mbps.

IP Address and Bandwidth

Cost of Colocation in Data Center, 95th percentile billing, often known as “burstable billing”, enables a server to be charged based on the typical bandwidth utilization for 95% of the month. The server may exceed the average without incurring any additional fees for the remaining 5% of the month.

Read More: data center tier standard

4: Remotes Hands

Modern servers typically come with a KVM or IPMI console. Which enables remote system administrators to control power, monitor system activities, and restart the server.

Remotes Hands

There is an hourly fee for remote hands technicians to work on the server at the colocation data center if there is any hardware malfunction or another reason why a technician needs to physically perform work on a server.

Cost of Colocation in Data Center availability, you can add monthly remote hands assistance to any of our colocation services.

People Also Ask

Q#1: Why does colocation cost so much?

You can manage and keep an eye on everything from one location. The second factor that drives up the cost of colocation servers is connected to security concerns.

Colocation servers are more secure than dedicated servers. Colocation servers frequently employ extraordinary security.

Q#2: What distinguishes colocation from a data center?

A data center is a specially constructed space created to store, power, cool, and link your IT infrastructure in an effective manner.

Hosting your IT equipment (such as servers) outside of your premises and in a data center is known as colocation and is one of the numerous services that data centers offer.

Q#3: What are the data center’s primary expenses?

A large data center typically costs between $10 million and $25 million per year. Less than half of the budget goes on networking, continuous power supplies, disaster recovery, software, and hardware.

Another significant portion goes on ongoing infrastructure and application maintenance.

Q#4: What advantages does colocation offer?

In addition, colocation offers:

  • Improved connectivity The completely redundant network connections in colocation data centers ensure that clients’ mission-critical applications always function without interruption.
  • Enhanced network safety.
  • Several power sources.
  • Ability to burst.
  • Growth potential
  • An action toward moving to the cloud.

Read More : bitcoin secure hosting


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