How much does colocation cost?
The short answer: $90-220/kW/month depending on where and what tier. Base rates range from $90/kW/month in emerging markets to $220/kW/month in constrained markets like Silicon Valley and New York. A typical enterprise deployment of 100 kW in a primary US market costs $12,000-16,000/month for the base lease, plus $500-800/month for metered power, $150-500/month per cross-connect (typically 4-20 needed), and $75-150/hour for smart hands support. All-in, a 1 MW deployment in Northern Virginia runs approximately $150,000-200,000/month. Key cost factors include power density, redundancy level (Tier III vs IV), contract length (longer terms yield 10-20% discounts), and interconnection requirements.
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