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data center cost

How much does it cost to rent a data center in 2023? Have you ever wondered?  Read on to learn the answer.

As data storage and processing demands increase, businesses search for reliable, secure IT infrastructure options. Renting a data center colocation is a popular choice as it provides access to top-notch facilities without the burden of building and maintaining one.

However, it’s fundamental to consider the costs involved.

Recent studies show that renting a data center coloco services in the US can range from $135 and $150 per month per kilowatt. This range factors in various expenditures for power, cooling, and bandwidth usage that contribute to the overall cost and may differ across different enterprises.

This article examines the top three factors influencing data center rental costs to help businesses choose the most cost-effective solution. Let’s dive in!

What Are the Factors Affecting Data Center Rental Costs?

Data center solutions are essential for businesses of all sizes to manage their digital data.

While building and operating a data center in-house may be an option for large enterprises, smaller businesses often opt to rent data centers instead. However, rental costs can vary widely depending on several factors, including the following:

Geographical Location of the Data Center

One of the most significant factors affecting data center rental costs is the geographical location of the data center.

Data centers located in major metropolitan areas or areas with high real estate prices generally cost more than those in suburban or rural areas. This is because land, construction, and maintenance costs are typically higher in urban areas.

To keep the costs minimal, you need to rent data centers in less expensive locations — preferably close to your customer base.

Size of the Data Center

The size of a data center solution also impacts its rental costs. Larger data centers generally cost more to rent than smaller ones. The reason is the increased space required for servers, networking equipment, power and cooling resources, and other infrastructure.

Similarly, renting a smaller data center can also backfire. If your business outgrows its capacity sooner than anticipated, it may increase costs to relocate or expand.

Tier Level of the Data Center

Data center colocation services are classified into four tiers based on redundancy and reliability: Tier I, Tier II, Tier III, and Tier IV. Each tier requires uptime, cooling, power, and other critical systems.

Tier I is the most basic, while Tier IV is the most advanced and offers the highest level of redundancy and uptime. As a result, renting a Tier IV data center services will cost more than a Tier I data center.

Conclusion: Colocate With Coloco for Fast, High-performing, and Affordable Data Centers!

When renting a data center, it’s essential to factor in additional costs beyond the base rental fee. Several factors can impact the rental costs of data center Coloco services.

Businesses should consider the geographical location, size, tier level, and power and cooling infrastructure when deciding which data center to rent. By considering these factors, businesses can make informed decisions about which data center rental option best fits their needs and budget.

Want affordable, fast, and high-performing data center Coloco services? Consult with Coloco support today and get rackin’!