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  1. #1
    Join Date
    Mar 2002
    New York

    Pricing for co-lo

    I'm getting quotes for bunch of cabinets and hit the wall with pricing structure. I want do find out if it's industry standard and there no one who can fit different model or not.
    Lets assume that you build a house and you pay to electrical company installation fee and they provide you with 200A line to you house. Company will charge you after that base on your usage, right? they not will tell you that first 6 months we charge you base on ur usage and then we going charge u all 200A because they spending money on reserve that electricity and build a power plant and they need have technicians on staff.
    Now go back to data centers. Client paying for installation of cage, paying for install power lines to cabinets , paying for what ever going to be install in this cage. if there will be one time setup of server that part is easy you know how much you use and it straight forward. In my situation i don't know my usage because my clients usage increasing or decreasing depends on situation. most of data centers demand that after grace period you must pay max of what they provide to you your usage plus reserve price. that is something what Im not understand. I'm ok to pay for cage space couse I' took that space. Why should i pay for electricity and cooling that I'm not using?

    So my question is it every one charge reserve or there DC who charge only on usage basis?
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  2. #2
    Join Date
    Oct 2000
    Quote Originally Posted by LIT View Post
    So my question is it every one charge reserve or there DC who charge only on usage basis?
    The majority of data centers will charge you a flat rate for the power circuit you order regardless of if you use it or not.
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  3. #3
    Join Date
    Apr 2000
    Nevada, US
    Some providers will work you out a customer deal in the format you are looking for, but you'll need to contact them and negotiate on a case by case basis.
    You won't find this typically at the largest players, like Telx, Equinix, Coresite, etc...

  4. #4
    You may find one that does what you are asking for, however, I would probably recommend against using that company for your colocation needs as it means that they have some poor capacity planning in place (or they could just be charging you an inflated rate for the space).

    The reason why the datacenters require a certain power to space ratio is that they build out the datacenter with a predefined amount of power that they intend to sell and utilize for that space they have built out. Unlike for a residential home where power is all split from some high voltage feed somewhere and stepped down to extremely low power 200A 240V feeds to each house (low relatively to datacenters), datacenters are typically build with dedicated high voltage feeds that come directly from a substation. These power feeds cost millions of dollars to have installed. Further adding to the cost are the UPSes, Generators, etc that you install into the facility. If you as the datacenter builder build out 10,000 sq ft of space and pay to install 2 MW of generator capacity and 2 MW of UPS load, then you are unable to sell more than this capacity to your customers.

    If there datacenter allowed everyone to come in and say provision us for 300 kW, but we only want to pay for the 50kW we are using right now and never pay for more unless we use it, they would provision well beyond their capacity in order to fill the datacenter. If 4 years down the line, the 10 customers that requested 300kW to be provisioned and only wanted to pay and use 50kW until they needed it suddenly start wanting / needing to use that 300kW, it would overload the datacenter capacity and essentially take the entire site down.

    Therefore, a datacenter that is properly capacity planning will at some point require you to pay for whatever power they are holding in reserve for you.

  5. #5
    some data centers in the US offer metered power as well as an option - colocation, dedicated and cloud quotes

  6. #6
    Join Date
    Jun 2011
    Columbus, Ohio
    Bob from quotecolo is right, some providers will charge for power based only on a per kwh basis, but scope is important. I can explain, but first, can you provide estimated kw (think continuous, although of course will fluctuate)?

  7. #7
    Join Date
    Apr 2009
    San Jose
    Power is a huge part of data center costs and right now the cheapest power in the US is generally in the greater Rocky Mountain region, so data centers in Denver, Salt Lake City (and St. George UT), Phoenix, and Las Vegas are going to be pretty cheap in comparison to many of other markets, and especially over west or east coast markets.

  8. #8
    Join Date
    Jan 2003
    Chicago, IL
    That is pretty standard. Now, some places might offer metered options, but then you'll pay a premium for that option and most will only do that at a certain commitment level, and possibly make you pay for the install of the meters, etc. Even in the cases of metered power, you're going to likely be paying a base per kw cost for the capacity, PLUS the actual kwh rate. metered is very common in larger cages, but not very common at all in smaller configurations.

    The issue is, power and power density is THE cost of a data center. It is all about capacity planning and maximizing utilization. All of the power infrastructure, cooling, etc. are the primary costs of a data center and the limits of a data center. Let's go with an example here, say they built out the data center to 100 watts per sq. ft. (about 3kw a cabinet), you order 20 cabinets, but only want to use 20kw of power. They now have either a lot of unused capacity or they need to find a customer that needs that specific amount of additional power. That is then unused, unpaid for capacity, but their primary costs are no different. Yes, utilities are a little lower, but in the end the utility doesn't mean much compared to the capital expenses and opportunity cost.
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  9. #9
    It is important to speak to customers, make them understand how does the power billing works. If they are able to plan their costs, you;d be able to negotiate a good deal. Another option as others mentioned above is to pay for usage, but this is something to negotiate with the DCs.
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