Full racks in North American Tier III data centers typically cost $1,000–$1,500 per month, with half racks starting at $400–$600, while private cages range from $2,000 to $5,000 per month depending on size, power, and location.

Pricing Overview

Colocation pricing is primarily determined by space, power, and connectivity. Providers charge based on the rack footprint (full rack, half rack, or partial units), the power allocation in kilowatts, and additional services such as cross-connects, bandwidth, and remote hands support .

• Full Rack (42U): $900–$2,000 per month depending on location, facility tier, and power configuration. Centrally located Tier III facilities with dual 20-amp 208V circuits typically cost $1,000–$1,500 per month .
• Half Rack (20–21U): $400–$600 per month, usually including 20–30 amps of 208V power and shared cooling .
• Private Cages: Semi-dedicated spaces (200–400+ sq. ft.) start at $2,000–$5,000 per month, with larger or custom build-to-suit cages quoted individually .

Key Cost Drivers

1. Power Usage: Power allocation is now the most significant factor in pricing. High-density deployments, such as AI workloads requiring 20–100 kW per rack, command higher rates than standard 3–10 kW racks .
2. Location: Data centers in Tier 1 cities or major metros (e.g., New York, Silicon Valley) are more expensive due to connectivity, latency, and disaster recovery advantages . Secondary markets offer lower rates.
3. Bandwidth and Connectivity: Costs vary based on port speed, metered vs. unmetered billing, and cross-connect requirements .
4. Facility Tier and Efficiency: Tier III or IV facilities with lower PUE (Power Usage Effectiveness) are more energy-efficient, which can reduce operating costs and influence pricing .
5. Additional Services: Setup fees, remote hands, disaster recovery, and contract length can significantly affect total monthly costs .

Market Trends

• North American colocation vacancy fell to a record 1.4% at the end of 2025, driving faster price escalation and limited negotiation room .
• Average monthly rates for 250–500 kW deployments are around $196 per kW, with all-in rates including power and services closer to $250 per kW .
• High-density AI colocation is creating a separate pricing track due to specialized cooling and power requirements .

Summary

When budgeting for colocation, consider rack size, power density, location, bandwidth, and service add-ons. Transparent comparison of quotes is essential, as base rates often exclude critical costs like power delivery, cross-connects, and remote hands support. For most North American deployments in 2026, expect half racks at $400–$600, full racks at $1,000–$1,500, and private cages at $2,000–$5,000 per month, with high-density or premium locations commanding higher prices .