Colocation Pricing Fundamentals

As mentioned, the colocation pricing depends on several factors, and the two of them that add the most to the total cost are, of course, space and power. However, if you dig deeper, you will discover that each Colo provider lays out its own billing structure, and often, there are many additional costs such as remote hands support, setup fees, and more.

To understand how pricing is calculated, let’s take a look at each segment individually!

Rack Space Units and Cabinet Pricing

The first element in server colocation pricing is the rack space your equipment occupies. Providers offer options from single rack units to full racks or private cages. The larger your space, the lower the cost per unit, so businesses often rent space by the rack or unit, depending on their power capacity.

Rack Space Pricing Breakdown:

Configuration:Space:Monthly CostBest For:
Single Server (1U–2U)1.75–3.5″~$79–$150Small deployments
Quarter Rack10U~$300–$500Growing businesses
Half Rack21U~$500–$800Mid-size companies
Full Rack (42U)73.5″~$599–$1,500Enterprise deployments
Private CageMultiple racks$2,000+Large enterprises

Note: The pricing in the table is purely an example, and real-world colocation pricing can vary depending on many factors, market conditions, and provider pricing.

Power Requirements and Billing Models

Power costs play a major role in colocation pricing. Most colocation providers charge using either a flat rate or a metered power model. Flat rate plans offer predictable billing, while metered plans charge based on power consumption.

High-density racks with redundant power often come with an additional monthly cost, so always check how your power requirements will affect pricing before signing a long-term contract.

Bandwidth and Connectivity Costs

Your bandwidth needs affect the final monthly cost by a lot. Many colocation providers often include a fixed bandwidth limit, use burstable billing, and charge extra if you exceed it. So, network connectivity options differ across data centers, with some offering faster speeds or dedicated cross connections.

We strongly recommend reviewing these details carefully when evaluating colocation providers’ pricing.

Geographic Location Impact

The location of the server data centers influences pricing due to energy rates, taxes, and infrastructure quality. A third-party data center in a major metro area often costs more but offers stronger disaster recovery and a higher uptime guarantee.

So, choosing a facility near your it team helps lower maintenance expenses and improves access to on-site remote hands services. Not to mention that the closer to your customer the server is, the lower the latency, leading to better customer satisfaction.

Location-Specific Colocation Pricing: ServerMania

A major factor that affects the colocation cost is the region, due to specific power costs, infrastructure quality, and network connectivity options. The location you choose affects both your monthly cost and service reliability.

ServerMania operates in strategic global hubs, ensuring you get the best balance between colocation pricing and performance.

North American Data Centers

ServerMania’s North American data centers are designed for scalability, low latency, and high uptime. Each colocation facility provides secure server space with dedicated support services and competitive colocation power rates.

North American Facilities

Data Center LocationFull CabinetUsable PowerBase BandwidthIPv4 RangeFirst SetupMonthly Price
New York59U5.5 kWh1 Gbps Unmetered/27$1,000$2,325
Los Angeles46U3.84 kWh1 Gbps Unmetered/27$1,000$2,225
Montreal48U3 kWh1 Gbps Unmetered/27$1,000$870
Vancouver42U3 kWh1 Gbps Unmetered/27$1,000$1,925
Buffalo42U5.5 kWh1 Gbps Unmetered/27$1,000$1,500

When ordering a full cabinet with ServerMania, you pay a First Setup Fee of $1,000 plus the recurring monthly price for your chosen data center. The setup fee is a one-time charge, while the monthly cost depends on location, usable power, and average bandwidth usage.

Monthly Cost per U (Full Cabinet):

  • New York = $39.40 per U
  • Los Angeles = $48.37 per U
  • Montreal = $18.12 per U
  • Vancouver = $45.83 per U
  • Buffalo: = $35.71 per U

European Colocation Facilities

ServerMania’s European colocation facilities deliver reliable colocation services tailored to meet data sovereignty and performance demands. Each colo facility meets Tier 3 or higher standards and includes redundant power and 24/7 remote hands availability.

European Facilities

Data Center LocationFull CabinetUsable PowerBase BandwidthIPv4 RangeFirst SetupMonthly Price
London48U3.5 kWh1 Gbps Unmetered/27$1,000$2,675
Amsterdam48U6.4 kWh1 Gbps Unmetered/27$1,000$1,900

Same as with the North American facilities, when ordering a full cabinet in our European colocation facilities, you pay a First Setup Fee of $1,000 plus the monthly price for your selected location. The setup fee covers deployment and initial configuration, while the monthly cost depends on the power, bandwidth, and regional data center services.

Monthly Cost per U (Full Cabinet)

  • London = $55.73 per U
  • Amsterdam = $39.58 per U

Note: If you are looking for a Customized Cabinet, get in touch with ServerMania Customer Service or request a free quote on our official website.

Location-Based Cost Colo Facility Factors

Each region’s colocation pricing reflects local infrastructure and energy economics, and that’s why there are several key factors that affect the total cost:

  • The real estate prices influence the baseline for colocation space and total cost.
  • Power costs vary sharply, from $0.04/kWh in Quebec to $0.18/kWh in California.
  • The local regulations and compliance add regional differences to the setup fees.
  • The connectivity impacts performance and bandwidth needs, adding to the price.
  • Climate and cooling requirements affect long-term power usage and maintenance.

Selecting the right location involves careful consideration of your business objectives. North American sites often offer lower monthly costs, while European regions provide stronger data center services for compliance and global reach.

Complete Colocation Solutions Cost Analyses

Understanding the total cost of colocation services is essential before you deploy your server hardware in a professional data center facility. Now that we have gone through some real-world examples of real colocation prices, we should analyze each to better grasp how your total cost will shape up based on specific requirements, addons, and needs.

One-Time Setup Costs

When starting a colocation deployment, you pay a setup fee that covers rack configuration, cabling, and connectivity. Like any other colocation provider, ServerMania also charges for the configuration:

ServiceIndustry AverageServerManiaSavings
Server Setup$1000–$2,000$1000~$1000
Cross Connects$150–$300 eachCompetitive RatesVaries
Security Setup$2,000–$10,000Custom PricingNegotiable

The setup fees with ServerMania are predictable and transparent. You pay the one-time $1,000 First Setup Fee for a full cabinet, and the rest of the configuration, including basic networking equipment against security threats and rack preparation, is handled without hidden charges.

Monthly Recurring Charges

You are typically billed based on rack space, colocation power, and bandwidth. These are the three primary elements that determine your total monthly expense.

ServerMania includes several services at no additional charge:

✓ 24/7 facility access
✓ Basic remote hands
✓ Server monitoring
✓ Security surveillance
✓ Fire suppression systems

These inclusions remove many hidden costs that other colocation providers might charge separately. When combined with competitive power costs and network connectivity, this structure helps maintain predictable expenses for both small and larger deployments.

Variable & Use-Based Fees

Beyond your base plan, your colocation costs may vary depending on actual usage. Power usage and average bandwidth consumption affect your monthly billing. If you’ve negotiated a custom and tailored rack space for unique needs, you might be billed as per your usage, with unique, client-specific rates.

For example, metered power plans bill you for the exact amount of power used, while flat rate options charge a fixed sum regardless of fluctuations.

Power Usage and Billing

The power efficiency also affects your monthly fee, as high-density servers draw more energy, which increases your overall power consumption.

A 1U server typically uses 200–400W per month, costing around $20–$80. A full rack averages 3–5 kW or $300–$1,000 monthly. Hence, high-performance environments using 10–20 kW of power may spend between $1,000 and $4,000 each month.

ServerMania’s Montreal colocation facility, powered by 99% renewable energy, offers one of the lowest power costs in North America, making it ideal for energy-efficient operations.

Optional Service Costs

The optional services extend functionality and uptime support for your deployment. These may include additional power redundancy, remote hands services, and cross-connect fees for enhanced network connectivity. Of course, the addons can be customized upon getting in touch with our customer service.

Here are some easy-to-scan power and redundancy options:

ConfigurationRedundancyMonthly CostUptime
Single Feed (A)NoneBase rate99.7%
Dual Feed (A+B)N+1+20–30%99.95%
2N RedundantFull+40–50%99.99%
2N+1 RedundantMaximum+60–80%99.999%

Selecting redundant power ensures uninterrupted operation even during maintenance or natural disasters. The higher the redundancy level, the greater the additional monthly cost, but it also guarantees higher uptime for mission-critical applications.

Another factor is, of course, cooling, which plays a major role in colocation pricing. Data centers with optimized cooling systems achieve lower Power Usage Effectiveness (PUE), reducing overall power costs, especially for enterprise-grade colocation operations.

Note: Facilities in cooler climates, such as Montreal or Amsterdam, require much less active cooling, translating into operational savings.

Why Choose ServerMania for Colocation

ServerMania delivers transparent colocation pricing, high-performance infrastructure, and reliable colocation services across global locations. Each data center is built for uptime, energy efficiency, and direct network connectivity.

You get predictable monthly costs with enterprise-level performance in every colocation facility:

Location:Why Choose This Location?
New YorkTier 4 data center powered by 100% renewable energy with high bandwidth capacity and carrier neutrality.
Los AngelesWest Coast colocation facility with international carrier access and mission-critical connectivity to Asia.
MontrealGreen-energy data center connected to QIX with fully redundant carriers and low power costs.
VancouverCarrier-neutral colocation space with strong connectivity across North America and Asia.
BuffaloHydro-powered colo facility offering low-latency connectivity and reliable uptime, making it a cost effective alternative.
LondonTier 4 colocation facility with N+N power redundancy and multi-continent network access.
AmsterdamCentral EU data center near AMS-IX providing GDPR compliance and fast European routing.

See Also: Data Center Tiers Explained? Tier 1, 2, 3, and 4

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Included ServerMania Colocation Services:

ServerMania colocation offers several services you don’t need to pay for:

✓ 24/7 Facility Access

✓ On-Site Monitoring

✓ Fire Suppression

✓ Security Surveillance

✓ Basic Remote Hands

✓ Network Redundancy

✓ Power Redundancy

Explore: ServerMania Managed Services

How to Get Started: Colocation with ServerMania

Deploying servers in a colocation facility requires careful, clear planning and execution, where each step helps you control the colocation costs, time, and management.

We’ve prepared a quick list to get started with ServerMania colocation in 7 easy steps:

1. Assess Requirements

Define your colocation space, power capacity, and bandwidth needs. Estimate power usage and average bandwidth consumption to align with your workload.

2. Choose the Location

Pick a colocation facility close to your users or your team to reduce latency. With ServerMania, you can choose a location in North America or Europe, including New York, Los Angeles, Montreal, Vancouver, Buffalo, London, and Amsterdam.

3. Select Configuration

Choose between a full rack or a custom rack for more space based on growth plans. You can even discuss a half rack option if you’re aiming towards a small-scale deployment.

4. Plan Your Migration

Set a timeline and prepare network cables, IP addresses, and cross-connects. Proper coordination prevents downtime during installation.

5. Contract Negotiation

Review setup fees, monthly cost, and uptime guarantee, as well as confirm included support services and note any additional costs.

6. Deploy Infrastructure

Install your server hardware in the assigned rack space and test the power requirements and internet connectivity before going live.

7. Ongoing Management

Track power consumption and uptime of your colocation rack, and use remote hands services when needed for rebooting servers, monitoring, and other needs.

💬 Ready to get started? Book a free consultation or get in touch directly with ServerMania’s 24/7 customer service to plan your colocation deployment today. Our experts are available right now!