Compare Data Center Operators: Colocation Guide

Choosing a colocation provider means comparing data center operators on reliability, connectivity, cost, and contract terms. This guide gives you a step-by-step process to evaluate and rank operators so you can pick a facility that fits your uptime needs and budget.

What You’ll Need

• Your current or projected power requirements (kW per rack and total)
• Your bandwidth needs (Mbps or Gbps)
• Your latency and geographic requirements
• A list of candidate data centers within your target region
• Your budget range (monthly recurring and upfront costs)
• Your compliance requirements (e.g., SOC 2, ISO 27001, HIPAA)

Step-by-Step

1. List your technical requirements. Write down your power per rack (e.g., 5 kW, 10 kW), total power, cooling needs, bandwidth, and any specific certifications you must have. This becomes your scoring baseline.
2. Shortlist operators by location. Use a data center map or marketplace to find facilities within your desired latency radius. Filter out any that don’t meet your basic power or space needs.
3. Check uptime and reliability history. Look for the facility’s actual uptime record (not just the SLA). Ask for the last 12 months of uptime reports. Also check the facility’s tier rating (Tier II, III, IV) from Uptime Institute or similar.
4. Evaluate connectivity options. Ask which carriers and internet exchanges are present. More carriers mean better redundancy and pricing. Check if your preferred cloud provider has a direct connection (e.g., AWS Direct Connect, Azure ExpressRoute) in that facility.
5. Inspect physical security and access controls. Ask about multi-factor authentication, biometrics, 24/7 monitoring, and visitor logs. Ideally, do a site visit to see the security in person.
6. Review power and cooling redundancy. Confirm whether the facility has N+1, 2N, or 2N+1 UPS and generator backup. Ask about fuel storage and refueling contracts. Check cooling systems for redundancy and efficiency (PUE).
7. Compare pricing structures. Get quotes that include monthly recurring charges (space, power, bandwidth) and one-time setup fees. Watch for hidden costs like cross-connect fees, remote hands charges, and overage penalties.
8. Assess service and support. Ask about remote hands availability, response times, and whether support is 24/7. Check if they offer a customer portal for monitoring and ticketing.
9. Read the contract carefully. Look for the SLA (uptime guarantee, credits), termination terms, and any lock-in clauses. Ensure you can scale up (or down) without excessive penalties.
10. Check references and reviews. Talk to existing customers if possible. Search for reviews on forums and social media. Look for any history of outages or legal disputes.
11. Score each operator. Create a weighted scorecard (e.g., uptime 30%, connectivity 20%, cost 20%, support 15%, security 15%). Rate each candidate on a scale of 1-5 and multiply by the weight to get a total score.
12. Make your final decision. Choose the operator with the highest score that fits your budget. Before signing, negotiate on price and contract terms—many are flexible.

Common Mistakes

• Focusing only on price. The cheapest option often lacks redundancy or support, leading to costly downtime.
• Ignoring the actual uptime record. A facility may promise 99.99% but have a history of outages. Always ask for proof.
• Underestimating power needs. If you grow, you’ll need more power. Choose a facility that can accommodate your future requirements.
• Not checking the bandwidth provider mix. If the facility has only one or two carriers, you may be stuck with poor pricing or limited failover.
• Skipping the site visit. Photos and brochures can be misleading. Visit to see the actual conditions, security, and cleanliness.
• Overlooking the contract’s hidden fees. Cross-connects, remote hands, and power overage charges can add up quickly.

Tips

• Negotiate on price and terms. Many operators will match a competitor’s quote to win your business.
• Ask for a trial period or a short-term contract to test the facility’s service and reliability.
• Check the facility’s disaster recovery plan. What happens if a hurricane or flood hits? How quickly can they restore service?
• Consider the facility’s power usage effectiveness (PUE). A lower PUE means lower energy costs and a smaller carbon footprint.
• Look for certifications like SOC 2 Type II, ISO 27001, or PCI DSS if you handle sensitive data. These show a commitment to security.
• Use a data center comparison tool to get a side-by-side view of options, but always verify the data with the operator.

Troubleshooting

If you can’t get a straight answer about uptime: Ask for the facility’s historical uptime report or a copy of their SLA. If they refuse, consider it a red flag.

If the facility is at full capacity for power: Ask if they have plans to expand. If not, you may need to look elsewhere or reduce your power per rack.

If the contract is too long: Negotiate a shorter term or a break clause. Many operators offer 1-year contracts with a renewal option.

If you’re worried about a facility’s financial stability: Check the operator’s financial health (if public) or ask about their ownership. A data center that goes bankrupt can be a nightmare to move out of.

If a facility’s connectivity is limited: Ask if they can bring in a new carrier. Some facilities have an open access policy, while others are exclusive to certain carriers.

Frequently Asked Questions

Q: What is the difference between Tier III and Tier IV data centers?
A: Tier III allows for concurrent maintenance (you can work on equipment without downtime), while Tier IV adds fault tolerance to any failure. Tier IV is more expensive but offers higher availability.

Q: How much does colocation cost?
A: Costs vary widely by location and power. Typically, you pay per rack, per kW, and per Mbps of bandwidth. Expect to pay anywhere from a few hundred to several thousand dollars per month.

Q: Can I move my equipment in and out easily?
A: Most facilities allow you to add or remove equipment with advance notice, but there may be fees for remote hands or installation. Check the contract for any restrictions.

Q: What is a cross-connect?
A: A cross-connect is a physical cable that connects your equipment to another carrier or customer within the same facility. It’s often billed as a monthly fee.

Q: How do I know if a data center is secure?
A: Look for physical security measures like biometric access, 24/7 monitoring, and security guards. Also check for certifications like SOC 2 or ISO 27001.

Q: What happens if the data center has an outage?
A: Most SLAs offer credits for downtime, but the amount varies. Always read the SLA to understand what you’re entitled to and how they measure uptime.

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