All new Registrations are manually reviewed and approved, so a short delay after registration may occur before your account becomes active.
Colocation pricing increase of ~41%
juniorrrrr
Member
Hi everyone,
I'm trying to get a better understanding of how much colocation pricing has actually increased over the last couple of years.
We have been with the same colocation provider since 2024/2025, and they have now informed us that our pricing will increase by approximately 41%, effective in about 30 days.
What caught my attention is that the new rate they are proposing for our existing equipment appears to be the same rate they currently advertise for new colocation orders.
So this does not seem to be a normal percentage adjustment to our existing contract price. It looks more like they are repricing our existing deployment using their current new-customer rate.
For context, our current setup is a relatively small partial-rack deployment, and the provider says their underlying datacenter rack costs have increased substantially.
I understand that power, datacenter space, cooling, labor, insurance, and connectivity have all become more expensive, especially in major US markets. I'm not questioning that costs have increased.
What I'm trying to understand is whether a ~40% increase from 2024/2025 pricing to 2026 pricing is normal in the colocation market right now.
For those buying colocation in the US:
- How much have your rack/U and power costs increased since 2024?
- Have providers been applying new customer pricing to existing contracts when they renew or adjust rates?
- How much notice are you normally getting before a significant price change?
- Are power increases the main driver, or is rack space itself becoming significantly more expensive?
I'm particularly interested in experiences from Florida / major metro datacenter markets, but feedback from anywhere in the US would be useful.
Not looking to name or criticize the provider, just trying to benchmark whether what we're seeing is consistent with the current market.
Additional context: with the proposed adjustment, our current 8U deployment would increase to USD 880/month.
Comments
Do you have any contractual agreements or terms with this colocation provider you can use to dispute the price increase? Typical enterprise colocation agreements have preset terms along with verbiage on increases and permissible rates.
If you are a tenant at-will and its a monthly service with no term, it sort of is what it is. Decide to absorb it or look elsewhere for a data center that meets your current needs at a reasonable price.
We can confirm that pricing in most in-demand metro markets has on average seen a 20-40% increase on new services.
Where in Florida? Miami has very different price metrics than say Orlando
Shop around. Contact other companies and perhaps try to negotiate with them when you have other offers? Maybe they are more willing to make a deal if you have other options.
The only service I have in the us is with dartnode, it’s been only two months but overall very happy. Their DC is in Texas tho
Happy to help if you need anything!
dartnode.com/colocation/houston
We're in Miami.
Thanks, I sent you a PM.
=====================
One additional point regarding location: Miami was originally our preferred US location because we wanted the best possible connectivity toward Central and South America.
Since then, we have deployed colocation infrastructure directly in South America as well, so our requirements have changed somewhat.
Because of that, if we ultimately decide to move our US colocation, we're also considering whether it still makes sense to stay in Miami. We may instead move the US presence toward a more central US location or the New York/New Jersey region, depending on pricing, network quality, and connectivity.
At this point we're mainly trying to understand whether the proposed increase is consistent with the current Miami market before deciding what direction to take.
Datacenter pricing has been going up over the years and Miami is definitely not a cheap market to be in. Both power and space has been going up in cost because DCs are running out of space/power for new deployments. However, a 30-day notice is short, usually datacenters provide more advance notice than that (or price adjustments are baked into the contract).
It would be interesting to know how much power and network you are paying for. We can provide colocation in Miami, FL (you can PM us or submit an inquiry at https://clients.advinservers.com/contact.php, if you are interested). We recently launched in iM Critical Miami.
As said above, best to get a contract where terms are agreed.
I'm trying to get a better understanding of how much colocation pricing has actually increased over the last couple of years.
Have you contacted other companies for a quote? If not, that's is what I would do. 40% increase sounds unreasonable but the best way to establish present market price like-for-like against your setup is to ask other for a price.
Happy to help in Miami. DM me.
On new contracts compared to what we had before? ~40-100% on quotes. Fighting heavily, maybe end up around +35% if inked. Across the board, everywhere. Everyone is "out of space" or "ten people contracting for this". There is definitely some truth to it, albeit when it comes to colo space directly it's a lot of BS flying around or 5x middle-men shopping the same 1-end user quote.
I contract our stuff on the longest possible terms originally, and I am fully prepared to yeet 1+ MW deployments to backup spaces already being laid out if they are egregious. I'll let them scramble to figure that out. I gain weird pleasure in this aspect of negotiating. That being said, for our reps/providers that are fair and just laying out reasonable items and/or approaching the situation correctly likely just going to inch costs up as we go.
So far not an issue, but every single quote in the last ~3-6 months is up a lot versus just EOY last year. Oddly: a lot of the same power/space is still available, too.
Everything. Power isn't actually up that much for majority of these (in some cases, cheaper). Labor, space, and RFS timelines being crunched. It's also a lot of perceived scarcity. No, bro, META isn't coming in to snatch this 450kW cage out from under us. Grow up. That being said, half these sales guys don't know the space and are just parroting what the PE-firm who just bought their datacenter at top-of-market multiples tells them to say.
If you didn't have 36-60m terms locked, and were m2m or yearly->m2m, expect to be squeezed. Also, if you are smaller colo customer (8U, partial rack, etc) you're so far down the totem-pole who knows.
If you're in FL, I'd check out Orlando, Jacksonville, and Tampa. You're going to add a few ms (5-8?) to S.A. but you're very likely to drop costs significantly. I know we had quotes as recently as July for ~180/kW all-in (1MW+ scale) in those FL markets.
I think this is key to the current market dynamics. Some of the providers would rather hold space empty than rent it for a lower price. Like one major provider boasting that they have 100s of cabinets available, but the price they want to charge for it compared to last year is nearly 2x.
Very, very strange market.
in our home base. north east jersey. every datacenter is 100% full. renewals are going to be ugly.
It's sooooo over
https://www.reuters.com/business/energy/texas-governor-orders-pause-new-data-center-approvals-pending-audit-2026-08-04/
I localhost a machine and
my rent go up for 30% the year either.
Any thoughts on Dallas? I can help on space there.