NYC colocation pricing guide

What you pay for

A colocation bill has two parts: monthly recurring charges for space, power, cross-connects and services, and one-time charges to get set up. The sections below cover each line you are likely to see.

Power

Power is usually the largest part of a colocation bill. Facilities price it in one of two ways: a fixed charge per circuit or per committed kilowatt, whether or not you use it all, or a metered charge for what you actually draw, often on top of a base fee.

Ask how many kilowatts each cabinet can take, whether the quote includes a redundant (A and B) feed, which voltage and amperage the circuits are, and how cooling is priced if you plan high-density racks.

Space

Space is sold in steps: a few rack units, a partial cabinet, a full cabinet, a private cage or a private suite. In most New York buildings space and power are bundled, so a cabinet price only means something next to the power that comes with it.

Larger footprints are usually quoted per kilowatt rather than per cabinet. Check what is included: the cabinet itself, locks, cage walls, and any ladder rack or cable management.

Cross-connects

A cross-connect is the cable from your equipment to a carrier, an exchange, a cloud on-ramp or another customer. Most facilities charge a one-time installation fee plus a monthly fee per connection.

In a carrier hotel with several operators, ask whether reaching a network on another floor or in another operator’s space needs extra connections, and who charges for each segment. For interconnection-heavy deployments, cross-connects can rival the cost of the space itself.

Bandwidth and IP transit

Some facilities sell their own blended internet access; carrier-neutral buildings let you buy transit from any carrier present. Transit is usually priced by port speed and a committed amount of traffic, with a separate rate for usage above the commitment.

Compare the commitment level, how bursting is measured and billed, and whether the port and the cross-connect to it are included.

Remote hands and setup

Remote hands covers work the facility’s staff do for you: reboots, cable moves, swaps and installs. It is billed by the hour or from a prepaid block, usually with a minimum charge per ticket and higher rates outside business hours.

Expect one-time charges too: installation of cabinets and circuits, cage build-outs, and cross-connect setup. Ask for every non-recurring charge to be listed in the quote.

Term, escalators and renewal

Longer commitments usually lower the monthly rate. Check the annual price escalator, what happens at renewal, the notice period to cancel or downsize, and whether you have a right to expand into adjacent space.

Month-to-month space exists but tends to cost more and may not be available in the most sought-after buildings.

How location changes the quote

• Manhattan carrier hotels. Bought for proximity to networks, exchanges and clouds. Space and power are tight, so footprints are smaller and the price reflects the connectivity you are buying.

• New Jersey. Secaucus, Newark, the Hudson waterfront and central New Jersey offer more room and power per building, from cabinets to wholesale suites.

• Long Island and Westchester. Smaller local markets, usually chosen for proximity to offices or as a recovery site. Fewer facilities means fewer options to compare.

A common way to balance cost and connectivity is a small footprint in a Manhattan carrier hotel for interconnection, linked to larger space in New Jersey for everything else. See the market guide and the carrier hotel guide.

Checklist for comparing quotes

• Committed kilowatts per cabinet, and whether A and B feeds are both included
• How power is billed: per circuit, per committed kilowatt or metered
• Every one-time charge: installation, circuits, cage build-out, cross-connect setup
• Monthly charge per cross-connect, and who charges for each segment in a multi-operator building
• Remote hands rates, minimums and after-hours pricing
• Term, annual escalator, renewal terms and notice period
• Expansion rights for adjacent space and extra power
• Service level commitments for power and environment, and the credits if they are missed

How to get an accurate quote

The more specific the request, the more useful the answer. Include the footprint, total power now and in a year, density per cabinet, cooling, the carriers or exchanges you need, any compliance requirements, your start date and the term you have in mind. Rough numbers are fine; we follow up on anything missing.