Sticker Shock on Colocation Price Hikes

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With strong demand and a shortage of quality data center space in some markets, colocation prices have been rising for some time. Over the past several years, major colo providers have been repricing contracts to market rates upon renewal. This has come as a surprise to customers, according to a new report from Forrester analyst Bill Martorelli (link via SearchCIO). Here’s the executive summary:

Longtime collocation hosting clients with expiring contracts are finding significantly higher prices in an environment where power requirements can trump space requirements

About the Author

Rich Miller is the founder and editor-in-chief of Data Center Knowledge, and has been reporting on the data center sector since 2000. He has tracked the growing impact of high-density computing on the power and cooling of data centers, and the resulting push for improved energy efficiency in these facilities.

One Comment

  1. Hi Rich, Interesting topic you posted about. Any info on where the rates are ultimately settling? Since all datacenters are different as it relates to power density, translating to the utility(in the economic sense) the customer realizes with the various vendors I'm curious if the folks you've interviewed are comparing rack prices to rack prices or if they're comparing total costs per kw consumed. Comparing rack prices to rack prices is somewhat deceiving yet it still seems to be very prevalent with customers. thanks, tom