4th October 2016

FAQ 1 – Demystifying co-location pricing

Co-location pricing can appear confusing – but it need not be.

Moving your data centre from an in-house computer room to an outsourced co-location data centre delivers a host of benefits to organisations who want to maintain the flexibility and control of owning their servers whilst reducing risk. Not only will the IT kit be housed in a more secure, controlled and resilient environment, but the opportunity exists to minimise both capital and operating costs.

If you run your data centre in-house, you need to allot significant long term capital investment. You also have to cover the estate, fabric and maintenance of the building including cooling and environmentals with complete responsibility and control for all aspects of the architecture, power connectivity and ongoing maintenance.

When you outsource, you pass all those concerns over to the provider, contracting to a service which covers rack space, cooling, humidity control, security, redundant power and options for internet and cloud connectivity.

Nevertheless, common with most outsourcing decisions, fear of unknown future costs can hang heavily over the decision and when people try to take a view of their on-going outsourced costs, the terminology and pricing structure can appear to be confusing.

At Datum we keep our pricing as simple as possible whilst, importantly, ensuring that client costs accurately reflect actual usage, rather than being set at a catch all level. This does mean that each contract breaks into 2 main pricing areas, non-recurring rates that apply to one-off charges such as rack installation or remote hands, and the second, potentially more confusing area of monthly recurring rates based on on-going usage of the facility.

Co-location pricing – clarifying monthly recurring rates

Datum pricing is based on power, and all monthly recurring costs relate to power consumption rather than space – although as with any in-house solution, on-going connectivity will also bear monthly charges.

Datum’s monthly recurring rates have three key components:

  • 1. A flat monthly fee which licenses the use of the power, cooling and associated services such as security, available redundancies, humidity control, monitoring, facility management etc. The amount is determined by the expected capacity or maximum kW draw of your equipment as agreed at the contract stage.
  • 2. A variable monthly charge for the actual number of kWh you use during the month which can be set at fully fixed, partially fixed or fully variable rates and is prepaid based on the kWh applicable to the agreed capacity.
  • 3. And lastly the overage charges, being metered power usage over and above the prepaid element

To find out how much it would cost to outsource your data centre to Datum’s highly resilient, highly secure and energy efficient facility, call our team on 0845 568 0123.

Follow Datum on LinkedIn

More blog and news



27 August 2019

Risks to IT come in many forms but some are more prevalent during the summer. But Datum has it all in hand ....
Photo of LA lights taken by


08 July 2019

Datum is now offering the power of Datum Edge Pods to organisations looking for distributed computing solutions.
Skateboarder flying high from


04 July 2019

Outstanding NPS provides proof that clients value Datum Datacentres' first class service
Image of tree truck showing the growth rings


24 June 2019

The future is looking very bright for Datum with above-market revenue growth despite fierce competition. We're excited about what's to come.
Image of business women shaking hands


20 May 2019

Our service-enhanced approach means that our clients always get the support they need to achieve their business goals.
A sign with arrows pointing left and right


17 April 2019

Datum's hybrid cloud colocation services are run an OpEx basis so companies can control IT costs whilst benefiting from scalable, flexible solutions.