What Is the Average Colocation Price per kW? (2026 Calculator)
The average colocation price is $120-180/kW/month for retail colocation in Tier 1 markets. Wholesale rates (1MW+) range from $80-130/kW/month. GPU-density colocation commands $150-250/kW/month due to specialized cooling.
- Retail (<500kW): $120-180/kW/month
- Wholesale (1MW+): $80-130/kW/month
- GPU High-Density: $150-250/kW/month
- Powered Shell: $60-90/kW/month (customer manages)
Calculate Your Colocation Cost
Configure your deployment requirements below. Compare retail vs wholesale pricing, and see total monthly costs across different markets.
Location & Deployment
Power Requirements
Additional Services
Contract Terms
Longer terms typically qualify for 8-15% discounts on base rates.
Which Markets Have Cheapest Colocation Rates?
| Market | Retail $/kW | Wholesale $/kW | Power Cost | Availability |
|---|---|---|---|---|
| Dallas-Fort Worth | $85-120 | $65-95 | $0.04-0.06/kWh | High |
| Phoenix | $90-125 | $70-100 | $0.05-0.07/kWh | High |
| Atlanta | $95-130 | $75-105 | $0.05-0.07/kWh | Moderate |
| Chicago | $110-150 | $85-115 | $0.06-0.08/kWh | Moderate |
| Northern Virginia | $140-200 | $110-150 | $0.06-0.09/kWh | Tight |
| Silicon Valley | $160-220 | $130-180 | $0.10-0.14/kWh | Very Tight |
Market Selection Tip
Dallas and Phoenix offer 40-50% lower rates than coastal markets with better power availability. For latency-sensitive workloads, use edge locations; for AI training, prioritize cost with secondary sites for burst capacity.
What Is Included in Colocation Pricing?
Typically Included
- ✓Power capacity (kW commitment)
- ✓Rack space (cabinet or cage)
- ✓Cooling (included in PUE)
- ✓Physical security (24/7 NOC, biometric)
- ✓Basic connectivity (1-2 cross-connects)
Additional Costs
- Cross-connects$200-500/month
- Remote hands$75-150/hour
- Power overages$0.10-0.15/kWh
- IP transit (1Gbps)$300-800/month
- Smart hands (install)$500-2,000
How Does GPU Colocation Pricing Differ from Standard?
| Factor | Standard Colo | GPU Colo | Premium |
|---|---|---|---|
| Power Density | 5-10 kW/rack | 20-50 kW/rack | 3-5x higher |
| Cooling Method | Air cooling | Liquid/rear-door | +20-30% |
| Base Rate | $120-180/kW | $150-250/kW | +25-40% |
| Security | Standard | Enhanced (caged) | +5-10% |
| Support | Remote hands | GPU-trained staff | +10-15% |
How Do I Calculate Total Colocation Cost?
Example: 100kW GPU Deployment in Dallas
Monthly Fixed Costs
- Power capacity (100kW × $110)$11,000
- Cross-connects (4 × $350)$1,400
- IP transit (10Gbps)$2,500
- Fixed Subtotal$14,900
Monthly Variable Costs
- Power usage (80kW × 730hrs × $0.05)$2,920
- PUE overhead (1.3× - 1.0× = 30%)$876
- Remote hands (est. 5 hrs)$500
- Variable Subtotal$4,296
Effective rate: $192/kW/month all-in
Should I Choose Retail or Wholesale Colocation?
Retail Colocation
<500kW deployments
- ✓Flexible terms (1-3 years)
- ✓Scale up/down more easily
- ✓Lower upfront commitment
- ✗25-40% higher $/kW
- ✗Less customization
Wholesale Colocation
1MW+ deployments
- ✓25-40% lower $/kW
- ✓Custom build-out options
- ✓Dedicated infrastructure
- ✗Longer terms (3-7 years)
- ✗Higher capital commitment
Break-Even Analysis
Wholesale becomes economical at 500-750kW when term commitment is acceptable. The 25-40% savings at 1MW+ ($30-50K/month) justifies longer terms. Use our calculator to model your break-even point.
Our Methodology
Colocation pricing data is sourced from:
- Provider data: Published rates from 50+ colocation providers
- Broker quotes: Aggregated from datacenter real estate brokers
- Market coverage: 40+ US markets, 15+ international markets
- Update frequency: Quarterly rate surveys via Power-Adjusted Yield (PAY) index
- Last updated: January 8, 2026
Limitations: Actual pricing varies by deployment size, term, and negotiation. Enterprise discounts of 10-30% are common for large deployments.
Frequently Asked Questions
What is included in colocation pricing?
Colocation pricing typically includes: rack space, power (often with PUE markup), cooling, physical security, and basic network connectivity. Additional costs include: cross-connects ($200-500/month), remote hands ($75-150/hour), and power overages.
What factors affect colocation pricing?
Key pricing factors: (1) Market location and land costs, (2) Power costs and PUE, (3) Deployment size (wholesale vs retail), (4) Contract term length, (5) Power density requirements, (6) Redundancy tier (N, N+1, 2N), (7) Connectivity options.
How does GPU colocation pricing differ from standard colo?
GPU colocation costs 30-50% more than standard colocation due to: higher power density (20-50kW per rack vs 5-10kW), liquid cooling requirements, enhanced security for high-value equipment, and specialized engineering support.
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