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Do not judge a colocation deal by its advertised uptime percentage. Read the service order, master agreement, SLA, facility schedule, and statements of work as one package, then verify exactly where power is delivered, how downtime is measured, what is excluded, how credits are claimed, and how equipment can be removed at the end. Those details determine whether the promise is useful when an outage or move actually occurs.
Start with the complete signed-document stack
A colocation contract is rarely one document. Assemble the proposed or executed master services agreement, service order or order form, SLA, facility or site schedule, pricing schedule, statement of work, security and access rules, and every amendment. Make a list of the facility name, suite or cage, service description, effective dates, and signatures for each document.
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Next, establish precedence. The agreement should say which document controls if an order form conflicts with an SLA, or a site schedule conflicts with the master agreement. A service order may identify the colocation space, power capacity, IT load, term, recurring price, and configured services, while a statement of work may cover installation or other custom work. An SLA normally governs performance rather than changing the commercial scope. Do not assume that a marketing page, certification, or sales presentation is enforceable unless the signed documents incorporate it.
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| Document | Questions to answer |
|---|---|
| Master agreement | Who is contracting, what law and venue apply, liability limits, payment rules, suspension rights, termination and cure provisions, and document precedence. |
| Service order | Named facility, rack/cage/space, committed kilowatts or other capacity unit, IT load, feed configuration, term, price, and included services. |
| SLA | Covered service, service boundary, target, measurement method, exclusions, reporting, claim procedure, credits, caps, and remedy language. |
| Facility/site schedule | Power and cooling delivery, access arrangements, cross-connects, monitoring, security, maintenance practices, and site-specific conditions. |
| Statement of work | Installation, cabling, migration, monitoring, or other one-time work, acceptance criteria, timing, and charges. |
| Policies and amendments | Security and escort rules, acceptable use, change notices, revised prices, and any later modification to the SLA or exit process. |
Ask the provider to express the deliverables in operational terms: number and type of racks or cages, usable floor space, committed capacity, A and B feed details, receptacle or PDU type, cooling or environmental service, cross-connects, monitoring, access hours, and installation responsibility. The SEC-filed colocation agreement exhibit is a useful example of separating infrastructure details into schedules and performance commitments into an SLA; commercially important percentages in that exhibit are redacted, so it is not a universal benchmark.
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Define the power promise at the electrical handoff
Write the electrical demarcation into the order and SLA. It might be the facility distribution system, a floor receptacle, a customer cabinet, a PDU, or another point. A promise measured at one point does not automatically cover equipment downstream from it.
Identify what “available” means
Provider language differs materially. OneColo’s SLA places its power objective at the power receptacle and does not extend beyond that point. Verizon’s U.S. Premium Data Center SLA measures power at the customer cabinet and treats power unavailability as the simultaneous loss of the primary and redundant outlet. Dynascale’s terms likewise describe a colocation outage by reference to its UPS delivery point. These are examples of different boundaries, not a common industry definition.
Check the redundancy conditions
- Are A and B feeds both included in the price?
- Must your equipment be dual-corded and connected to both feeds to qualify?
- Does failure of one feed count as an SLA event, or only simultaneous loss of both?
- What circuit rating and committed kilowatts are ordered, and is the figure usable capacity or a billing maximum?
- How are peak draw, overage, power factor, and metering handled?
- Are rack-level meters and reports included, and who owns the underlying readings?
Verizon’s example conditions its commitment on using both feeds and staying within the contracted power rating. The SEC-filed exhibit separately lists power capacity, circuit infrastructure, metering, and rack monitoring as service details. Put those conditions in the order rather than relying on a diagram or verbal assurance.
Separate design features from contractual guarantees
UPS units, generators, transfer switches, fuel arrangements, and redundant distribution are resilience features. They become enforceable availability commitments only when the agreement states the service target, measurement point, and remedy. The SEC-filed exhibit lists several of these systems, but its performance targets are partly redacted. Ask how utility interruptions, generator refueling, planned work, emergency work, and fuel shortages are treated, and record the escalation contact for a power incident.
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Audit the uptime calculation, not just the percentage
For every SLA objective, mark the covered service, measurement interval, outage definition, calculation method, and evidence source. A percentage is meaningless without its denominator and rules for partial or redundant service.
Questions that expose the math
- Is availability calculated monthly, quarterly, or over the contract year?
- What starts and stops the clock: an automated alarm, a customer ticket, or provider confirmation?
- Does a short interruption count, and is there a minimum duration or severity?
- How is degraded service treated when one of two feeds remains live?
- Does the provider measure at the demarcation point or at your equipment?
- Which monitoring system is authoritative, and can you inspect or audit its records?
- Are reports automatic, and when are they delivered?
The SEC-filed example calls for monthly reporting and audit access, although several timing and target values are unavailable in the public exhibit. Require the signed agreement to state those details rather than accepting “measured by provider systems” without an audit path.
Build an exclusions schedule
Copy each exclusion into a working table and identify its operational consequence. Common categories in the reviewed provider terms include planned maintenance, emergency maintenance, force majeure, customer equipment or conduct, exceeding ordered capacity, upstream utility or network failures, and events beyond the provider’s delivery point. Verizon and OneColo use maintenance and customer-related exclusions; Dynascale excludes circumstances such as force majeure and customer equipment failures while defining the outage at its UPS delivery point.
| Exclusion to test | Contract question |
|---|---|
| Planned maintenance | How much notice, what windows, and is there a maximum duration or frequency? |
| Emergency work | What qualifies as an emergency, and when must notice and a post-event report be provided? |
| Customer equipment or conduct | Does a failed PDU, overload, cabling error, or unsafe work remove the entire event from measurement? |
| Utility, carrier, or upstream failure | Which failures are outside the delivery boundary, and what mitigation or communication remains required? |
| Force majeure | Does the clause suspend only credits, or also restoration, notice, and termination duties? |
An exclusion from credit eligibility does not automatically answer whether the provider still owes notice, incident records, root-cause analysis, mitigation, or restoration. Those duties should be stated separately.
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Understand credits, claims, and stronger remedies
Service credits are usually a formula with procedural gates, not an automatic refund. Record the qualifying event, charge base, submission method, deadline, cap, and whether the credit is the exclusive remedy.
Map the claim procedure
- Determine whether the provider calculates credits automatically or you must request them.
- Record the required ticket number, outage times, affected service, evidence, and account-status conditions.
- Calendar the filing deadline and the date on which an approved credit appears.
- Check whether a dispute over the incident pauses payment or creates a separate escalation process.
In Verizon’s cited U.S. example, the customer must open a trouble ticket requesting an investigation within five days. That is a provider-specific rule, not a general deadline. OneColo’s example describes a monthly service-credit cap of 50% of the affected month’s recurring monthly charge (MRC). Verizon’s example limits the credit to specified recurring charges. Confirm exactly which rack, power, cross-connect, or other fees enter the calculation.
Ask what happens after a serious or repeated failure
Identify the maximum credit per month, whether credits roll over, and whether multiple events can exceed the cap. Then negotiate a separate consequence for chronic failure or a prolonged interruption: termination for cause, fee suspension, expedited migration assistance, or another remedy subject to legal review. The published examples demonstrate different credit mechanics; they do not establish a universal percentage, cap, or enforceability rule.
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Exit rights are useful only if the contract lets you leave, retrieve equipment, and keep control of the migration. Review customer and provider termination rights, notice and cure periods, termination for prolonged outage, suspension, minimum commitments, renewal and auto-renewal, holdover, and early-termination charges.
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Check site-lease dependency
Ask whether the provider’s right to occupy the facility depends on a separate site lease, landlord consent, or another upstream agreement. Dynascale’s published terms, updated July 16, 2025, state that colocation occupancy is subject and subordinate to the site’s lease. Treat that as a diligence prompt: ask what notice you receive if the provider loses site rights, whether an alternative facility must be offered, and who bears relocation or accelerated-removal costs. It is not a universal market clause.
Specify the physical wind-down
- How many days are available to remove racks, servers, storage, cabling, and media?
- How are access appointments, escorts, badges, loading docks, lifts, packaging, and shipping handled?
- Who disconnects cross-connects and performs final power-down, and what are the fees?
- What happens to data-bearing media, labels, inventories, and equipment left behind?
- Must the customer restore the space, and how are damage claims assessed?
- When do recurring charges stop if removal spans a billing cycle?
The SEC-filed example includes a holdover arrangement, showing why post-expiration occupancy and charges should be explicit. Do not assume that the ordinary access policy covers a termination move; attach a removal procedure or statement of work.
Contract for transition assistance
Request a migration timetable with reasonable access, inventory and circuit records, carrier or cross-connect coordination, incident history, and a named transition contact. State whether service can remain live during a defined migration window, who pays recurring charges during that window, and which party pays one-time disconnect, packing, escort, or restoration costs. The reviewed agreements do not establish a standard transition package, so these are negotiation points to write into the order or an exit statement of work.
Compare competing offers on equivalent axes
Use one worksheet for every facility. A headline availability number cannot normalize different demarcation points, feed assumptions, exclusions, or remedies.
| Comparison axis | Record for each offer |
|---|---|
| Scope | Facility, space, racks or cage, cooling, cross-connects, monitoring, access, and included installation. |
| Power | Committed capacity, circuit rating, A/B feeds, dual-cord condition, metering, overage treatment, and delivery point. |
| Availability math | Target, measurement period, outage definition, partial degradation rule, monitoring authority, and report timing. |
| Exclusions | Maintenance, force majeure, customer events, capacity overrun, utility or carrier events, and boundary limits. |
| Remedies | Claim deadline, qualifying charges, formula, monthly cap, sole-remedy wording, and chronic-failure rights. |
| Exit | Term, renewal, holdover, notice, cure, early-exit fees, site-lease risk, removal access, and migration support. |
| Total cost | Recurring space and power, metering, cross-connects, installation, overage, maintenance-related work, removal, and transition charges. |
If an offer leaves a cell unstated, mark it “not stated” and obtain a written answer. Do not fill gaps with assumptions about what a certified facility or a familiar uptime label normally means.
A practical review sequence before signing
- Assemble and version the documents. Use the final PDF or signature copy, not a sales draft, and list every incorporated schedule and amendment.
- Draw the service boundary. Mark the power handoff, monitoring point, network or cross-connect boundary, and the equipment your team must provide.
- Recalculate a sample outage. Using the stated interval and exclusions, determine whether a single-feed loss, partial degradation, or maintenance event qualifies.
- Trace the credit. Follow the ticket, evidence, deadline, charge base, cap, and posting date as if an outage occurred tomorrow.
- Run an exit tabletop. Assign dates and owners for notice, cure, migration, escorts, disconnects, shipping, media handling, and final billing.
- Escalate unresolved terms. Have counsel review governing law, liability, indemnity, termination, lease dependency, and any clause that makes the SLA the sole remedy.
Keep the completed worksheet with the executed contract and operational runbooks. A later facilities or procurement team should be able to identify the exact feed, meter, contact, deadline, and removal right without reconstructing the negotiation.
What the published examples do—and do not—prove
The SEC-filed agreement is strongest for showing how orders, schedules, infrastructure details, reporting, audit access, and holdover concepts can be organized, but important SLA values are redacted. Verizon, OneColo, and Dynascale illustrate different power boundaries, feed definitions, exclusions, credit procedures, and site-lease language. Extent Technologies’ SLA illustrates that eligibility may depend on the signed order and that the signed agreement can establish a different target. These examples should help you identify questions; they do not supply a universal uptime figure, credit percentage, or jurisdiction-wide legal rule.
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Have the actual agreement reviewed under its governing law when the financial or operational exposure is material. Contract interpretation and enforceability depend on the complete text and facts, including documents not visible in a public provider example.
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