Colocation Pricing Guide: How much does colocation cost for server space?

    Request a colocation quote to receive the best price.

For businesses looking to rent data center space, server colocation may be the right option to meet your business objectives.

When evaluating the option to utilize ServerMania colocation facilities there are a number of practical considerations, including colocation data center pricing, setup fees, required physical space, hardware deployment, power capacity, dedicated IP addresses, and disaster recovery.

In this article, we explain what colocation is and how ServerMania can provide you with complete control of your own equipment along with the added benefit of cost savings compared to owning data center space and managing server operations.

See Also: The ServerMania Colocation Catalog

What is Colocation?

Colocation hosting (sometimes referred to as "colo" or "server co-location") is a service where a business drops off or ships servers and hardware components to a provider, such as ServerMania. The provider then racks the servers and is instructed to deploy equipment in its secure data center for a one time setup fee. 

As a provider, ServerMania will connect your server, in the physical environment, to power and networking infrastructure for maximum interconnectivity. For one monthly rate, colocation hosting offers businesses an optimal environment for their dedicated servers.

Some of the benefits of deploying your servers in a colocation facility include leasing space in a secure location (i.e. a private cage with key card access) that is climate controlled, guarded by security officers 24x7, and staffed with technicians to perform any physical server activities required (remote hands).

Our data centers feature ample square footage, redundant power, high quality network access, cooling, and mitigation measures in place to ensure your dedicated server setup keeps running in the event of a natural disaster.

All of these features will ensure the most reliable server hosting experience in our data centers.

You can learn more in detail about colo server hosting in this article.

Renting vs. Colocating A Server

There are benefits for both renting and colocating a server. Here are just a few:


  • No up-front server hardware cost
  • No hardware replacement costs
  • Access to 24x7 technical support
  • Upgrade to a new server at any time without paying for new hardware


  • Access to more customized hardware
  • Configure your own private networks and custom network configurations
  • House servers in isolated racks with no other user access
  • Invest in physical servers as a company asset


Depending on the specific IT equipment and additional hardware requirements of the business, some organizations may prefer to invest the time and money to purchase server hardware and colocate servers. For other businesses, the pricing models to rent a server may make more sense if they don't have unique hardware requirements or may need to upgrade servers frequently.

What Applications Are Best Suited For Colocation?

Custom Hardware Requirements

For businesses that have unique server and network requirements, colocation offers the greatest control in building the exact server required for the project. When comparing colocation pricing to a dedicated server rental, it may be cheaper to colocate the server when the hardware needs are very unique.

Focus On Hardware Investment

Certain businesses may find that it makes the most economic sense from a cashflow perspective to invest resources in server hardware.  

Large Scale Deployments

Projects requiring dozens or hundreds of servers for an application may find it easier and more financially viable to invest in the hardware rather than renting a server.

How Much Does Server Colocation Cost?

Server colocation pricing is very application specific. The colocation pricing will vary depending on real estate prices, colocation provider, the amount of units, data center location (i.e. central location or outside an urban area), power, and bandwidth required.

ServerMania offers colocation in several locations around the world:

Full Cabinet

$2,125.00 (MRC)

Full Cabinet

$1,325.00 (MRC)

Full Cabinet

$845.00 (MRC)

Full Cabinet

$1,825.00 (MRC)

Half Cabinet 

$1,075.00 (MRC)

Half Cabinet 

$675.00 (MRC)

Half Cabinet

$450.00 (MRC)

Half Cabinet

$925.00 (MRC)

Data Center Rack Space Units

One of the primary elements of colocation cost is the number of rack units needed and whether or not a cross connect is required between servers in one of our data centers.

Colocation space is typically one of the larger expenses in the bill. Unlike traditional desktop computers, servers stored in a data center are created using a rack mountable case. This helps to increase the number of servers that can be hosted in the data center as well as optimize for power and cooling distribution.

The typical server is 1U or 2U, which means that it takes up one or two rack units. But larger storage servers or older servers may be larger and take up 4U. The colocation server space costs will therefore vary depending on the number of servers you wish to host in the data center along with the number of rack units each requires.

Colocation is typically priced either per unit, a half rack or a full rack and would be charged per rack.

Power Costs

The amount of power that each server requires in one of our data centers is another cost consideration when assessing colocation pricing. Energy is billed monthly based on the number of power drops required to the rack along with the number of amps required for the cabinet.

When choosing a power configuration, careful consideration should be given to current and future forecasted power consumption as these will affect colocation costs.

Some of the common electrical configurations we offer include 20amp/120V and 30amp/230V. Maximum wattage that a rack can carry will vary depending on the electrical feeds being supplied to the cabinet and various other factors. Depending on the installed equipment a typical rack’s wattage will range from 2-3 kW.

Bandwidth and IP Addresses

The amount of monthly network transfer required from the internet service provider for all colocation servers as well as any public IP addresses needed will be considered when preparing a colocation pricing quote. Typically, there will be dual 1Gbps network connections delivered to each rack-mounted server and monthly bandwidth will be billed at the 95th percentile in Mbps. 

Also called “burstable billing”, 95th percentile billing allows for a server to be billed based on the blended bandwidth, or average bandwidth usage, for 95% of the month. During the other 5% of the month, the server may exceed the average without suffering any additional costs.

Remote Hands

Modern servers are usually equipped with a KVM / IPMI console which allows remote system admins to monitor system activity, manage power, and reboot the server from outside the data center. If there is a hardware failure or another reason why a technician needs to physically perform work on a server, there is an hourly fee for remote hands technicians to work on the server in the colocation data center. Each of our colocation services can be upgraded, for an additional fee, to include monthly remote hands support.

How to Colocate A Server


Compile a list of servers that you wish to colocate including their unit size and power requirements.


Contact us to request a colocation pricing quote to receive the exact colocation costs and monthly fee for your project.


Prepare the servers for shipment and ship the servers to one of our colocation data centers. As a trusted data center colocation provider, we also have data centers located in New York Metro, London, Los Angeles and Montreal, Canada.


Once the servers have been processed and racked in a data center by colocation providers, you will receive IP address information for your servers.

Request Your Free Colocation Quote Today

Due to the unique nature of colocation pricing, we recommend requesting a quote to receive precise information for your project.

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