The Tool Desk
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What colocation includes—and what you still own
Colocation means renting space in a data-center facility for your own servers and other IT equipment. ENERGY STAR describes the arrangement this way: “A colocation data center facility rents space to businesses for housing servers and other IT hardware.” The facility normally supplies the building and rack space, electrical power, cooling, internet connectivity, and physical security. You supply and operate the servers, storage, and networking equipment unless your contract assigns some of those tasks to the provider.
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That division of responsibility makes the contract more important than a tour or a marketing brochure. Your evaluation should identify exactly which party owns each electrical, network, security, monitoring, maintenance, and incident-response task, and what happens when either party fails to perform it.
1. Filter by location and workload before comparing providers
Set mandatory geographic requirements
Write down the countries, regions, or metropolitan areas in which equipment may legally and operationally reside. Include data-residency and sovereignty rules, latency targets to users and application dependencies, approved access routes for staff and vendors, and the date by which racks must be ready. A facility that misses a mandatory location or delivery date should not remain in the comparison merely because it is cheaper.
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Assess local hazards relevant to the proposed site: flood, wildfire, severe storms, earthquakes, water shortages, grid constraints, and transport disruption. The right hazard profile depends on your jurisdiction and business continuity plan; there is no universally best region established by the available evidence. Request the provider’s site-specific risk assessment, insurance requirements, emergency procedures, and recovery assumptions rather than treating a city name as proof of resilience.
Describe the workload in measurable terms
Give each bidder the same workload brief. State the number and dimensions of cabinets, initial and five-year rack count, usable kilowatts per rack, expected peak draw, circuit voltage and phase, power-factor assumptions, inlet-temperature envelope, equipment dimensions and weight, network ports, cross-connect count, and any liquid-cooling requirement. Include maintenance windows, physical access frequency, remote-hands tasks, and the date of the first production load.
Separate must-haves from preferences. For example, a residency boundary, a liquid-cooling capability, or a delivery date may be non-negotiable; a particular reception area or optional conference room is not. Score preferences only after every mandatory requirement passes.
2. Compare usable power and electrical resilience
Ask for committed capacity, not a headline number
Request the committed usable kilowatts per rack or cabinet, the total commitment for your initial footprint, and the expansion headroom reserved for you. Clarify whether the quoted capacity is dedicated or shared, how it is measured, and whether it is an engineering maximum, a contractual commitment, or a planning estimate. Ask what happens when your measured draw exceeds the commitment, including the overage rate, notice period, and whether the provider can curtail or relocate equipment.
Document the circuit and redundancy topology
Require a single-line description of the proposed electrical path: utility feeds, generators, automatic transfer equipment, uninterruptible power systems, distribution units, rack circuits, and maintenance bypasses. Identify whether racks receive A and B feeds, whether each feed is independently sized for the load, and which components are N, N+1, 2N, or another arrangement. A label such as “redundant power” is not enough; ask which component can fail or be maintained without dropping your load and which assumptions make that statement true.
Clarify metering and maintenance
Ask whether billing uses reserved capacity, measured tenant energy, or a combination. ENERGY STAR notes that colocation leases may charge for space and power capacity, or meter actual tenant energy and add overhead for cooling and power delivery. Request the meter location, interval, accuracy, demand calculation, reconciliation process, and a sample bill for your proposed configuration.
Obtain the planned-maintenance procedure, required customer notices, emergency-work rules, generator-fuel arrangements, and outage-reporting format. Require a post-incident report that identifies the failed component, timeline, customer impact, corrective action, and whether any SLA credit applies.
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3. Match cooling to actual rack density
Cooling fit is a workload question, not a statement that a room is “fully redundant.” Give the provider your measured heat load, expected peak, rack density, equipment airflow direction, intake-temperature and humidity envelope, and growth plan. State whether any servers, accelerators, or storage systems require direct-to-chip, rear-door, immersion, or another liquid-cooling method.
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Ask the provider to document the supported configuration: maximum density per rack, allowable supply-air temperature and humidity, containment design, chilled-water or refrigerant limits, leak detection, isolation procedures, and the operating response to a failed cooling unit. Confirm whether liquid systems are installed, customer-provided, or prohibited, and who supplies plumbing, manifolds, monitoring, and emergency shutoff. Obtain written procedures for equipment installation and for operating outside normal density or temperature limits.
4. Separate availability engineering from contractual proof
Use three evidence categories
Compare each site using three distinct categories:
- Designed capability: the facility’s topology, maintainability, and fault-tolerance documentation.
- Observed performance: incident history, service reports, maintenance records, and the provider’s disclosure of customer-impacting events.
- Contractual commitment: the SLA’s measurement method, exclusions, remedies, and termination rights.
Do not substitute one category for another. A resilient design does not guarantee a particular availability percentage, and an SLA credit does not restore lost data or revenue.
Understand tier language without treating it as a fit guarantee
Uptime Institute’s tier classification describes infrastructure capability. Its published search-result summary characterizes Tier III as concurrently maintainable and Tier IV as fault tolerant. Tiers are progressive, but a higher tier is not automatically the right choice for every workload. Confirm that the classification applies to the exact facility and configuration you would occupy, not merely to a campus, company, or design concept.
Read the SLA line by line
Request the complete SLA and mark these fields:
- Services covered and the boundary between facility, power, network, and customer equipment.
- Availability definition, measurement interval, aggregation period, and data source.
- Planned-maintenance treatment, force-majeure language, customer-caused exclusions, and notice rules.
- Credit calculation, claim deadline, maximum remedy, and whether credits are the sole remedy.
- Incident notification, escalation contacts, reporting cadence, and root-cause analysis.
- Termination, service-level failure thresholds, and rights during a prolonged outage.
Ask the provider directly: “What failover mechanisms and redundancies are in place to prevent outages?” Require the answer to identify physical components, software controls, testing frequency, and customer responsibilities. Ask for the incident and service reports the provider is permitted to disclose.
5. Test connectivity and physical path diversity
Compare carriers and on-net choices
List every carrier available in the exact room or meet-me area, not just carriers serving the building. Compare installation lead times, recurring cross-connect fees, port speeds, demarcation points, cloud connectivity options, bandwidth commitments, and who owns each segment from your rack to the carrier or cloud provider.
Prove that “redundant” routes are actually separate
Ask: “What network carrier options are available, and can they provide redundant connectivity paths?” Require route diagrams showing building entry points, risers, meet-me rooms, conduits, aggregation devices, and upstream paths. Two circuits from different carriers may still share a conduit, entrance facility, power source, or metropolitan fiber cut. Ask the provider to identify shared physical risks and the mitigation for each.
Measure or model latency to your users, databases, identity services, backup targets, and other dependencies. Compare normal and failure-path latency, packet-loss assumptions, traffic-engineering controls, DDoS responsibilities, and restoration targets. Include cross-connect installation and cancellation terms in the commercial comparison.
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Start with the controls required by your workload and jurisdiction, then map each requirement to evidence. Request current audit or certification reports with the facility name, scope, reporting period, exceptions, corrective actions, and customer-access process. A corporate certificate that excludes the proposed site does not establish site compliance.
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Compare physical access controls, identity verification, badge issuance and revocation, visitor escorting, camera coverage and retention, security staffing, loading-dock procedures, cage or cabinet options, and media-destruction services. Establish who approves access, how quickly emergency access is granted, and how access logs are delivered.
Define incident responsibilities in writing: detection, notification deadline, evidence preservation, regulator communications, customer forensics, and post-incident reporting. Confirm your own obligations for hardening, key management, patching, equipment disposal, and staff screening. Compliance should be evaluated as a control-and-evidence package, not as a logo on a website.
7. Compare operations and support in practical terms
Request a support catalogue and rate card. Compare 24/7 monitoring, ticket channels, response and restoration commitments, escalation levels, maintenance notices, change-control procedures, and the people authorized to approve work on your equipment.
Define remote hands precisely
List the tasks you expect: visual checks, power cycling, cable tracing, console access, media replacement, hardware installation, inventory, and shipping or receiving. For each task, record included quantities, response target, skills required, hourly rates, minimum charges, after-hours surcharges, and evidence returned (photos, serial numbers, test results, or ticket notes). Confirm whether a provider employee may enter a cage alone and how two-person or customer-witnessed work is handled.
Ask for the change window process, maintenance-notice lead time, emergency-change authority, and the escalation path to an accountable incident manager. Exact commitments must come from the quote and contract; a general promise of “24/7 support” is not a measurable service.
8. Check delivery, scaling, and contract flexibility
Compare the date for a powered, cooled, and access-ready handover—not merely the date a contract is signed. Require milestones for design approval, cross-connect ordering, cage or cabinet construction, power turn-up, access provisioning, and acceptance testing. Identify customer dependencies and remedies for missed dates.
Ask: “Can I start small and scale dynamically, or do they require long-term commitments?” Record the minimum cabinet or power commitment, reserved future capacity, expansion lead time, pricing for added kW and cross-connects, minimum term, renewal mechanics, annual escalators, relocation rights, and early-termination charges. Clarify whether unused reserved capacity can be reduced and whether equipment removal requires advance notice or fees.
9. Normalize total cost before selecting a quote
Build a five-year cost model using the same footprint and workload assumptions for every bidder. Include these components:
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| Cost element | What to normalize |
|---|---|
| Space | Cabinet, cage, or square-foot charge; minimum footprint; construction and security options. |
| Power | Reserved kW or metered energy, demand rules, cooling and delivery overhead, overage rates, and circuit installation. |
| Connectivity | Cross-connect installation and monthly fees, bandwidth, carrier ports, cloud links, and diverse-path charges. |
| Operations | Remote hands, monitoring, shipping, storage, staging, smart-hands minimums, and after-hours premiums. |
| Contract terms | Setup fees, taxes, annual escalators, renewal pricing, migration costs, and early-exit charges. |
Request a sample invoice or an explicit rate schedule for the proposed cabinet count, committed power, expected consumption, cross-connects, and support usage. Show both reserved-capacity and metered-consumption scenarios when the provider offers a choice. A lower monthly quote can become more expensive if it excludes installation, overage, cross-connect, or exit costs.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.10. Evaluate sustainability with site-specific evidence
Interpret PUE correctly
Power Usage Effectiveness (PUE) is total facility energy divided by energy delivered to IT equipment. A value closer to 1 indicates better efficiency by this metric. ENERGY STAR cites an average reported PUE of 1.7 from a Uptime Institute survey in 2014. That figure is historical, not a current market average, and it should not be used to predict a particular facility’s performance.
Ask for the proposed site’s PUE, reporting period, calculation boundary, sampling method, weather or load conditions, and whether an independent party verified it. Confirm whether the number covers the whole campus, a building, or your specific data hall. PUE does not measure renewable sourcing, embodied carbon, water use, or resilience, so it cannot serve as a complete sustainability score.
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Ask what can be contracted
Request evidence of renewable-electricity procurement, energy certificates, water-management measures, and efficiency projects. Distinguish physical renewable supply from certificates and identify the accounting boundary. If sustainability matters to procurement or reporting, put the applicable metric, reporting schedule, verification method, and remedy for non-delivery in the lease or service schedule rather than relying on an informal promise.
Build a like-for-like RFP
Send every shortlisted provider the same workload profile, assumptions, response template, and deadline. Require a site-specific technical schedule and rate card, not a corporate brochure. Your RFP should request:
- Exact facility address or permitted disclosure, delivery milestones, access rules, and hazard documentation.
- Committed usable kW, rack density limits, circuit topology, metering basis, expansion headroom, maintenance process, and outage reporting.
- Cooling design, environmental limits, supported liquid-cooling configuration, and operating procedures.
- Facility capability documentation, the full SLA, exclusions, remedies, escalation, termination rights, and disclosable incident history.
- Carrier list, on-net options, cross-connect pricing, cloud connectivity, route diagrams, and physical path-diversity analysis.
- Security controls, current audit or certification evidence, scope, exceptions, access logs, and incident-notification process.
- Support catalogue, response commitments, remote-hands rates, maintenance notices, and change-control workflow.
- Delivery schedule, initial and expansion pricing, minimum term, renewal, escalators, reserved-capacity rules, and exit provisions.
- Sample billing for the proposed configuration and a five-year total-cost schedule.
- Site-specific PUE and sustainability evidence with period, methodology, verification, and contractual options.
Record unanswered questions as “not stated” in your comparison. Do not fill gaps with assumptions or award a higher score for an answer that does not include evidence.
Score bids without letting price hide a failed requirement
Use a two-stage decision. First, mark each mandatory requirement as pass, fail, or clarification required. A facility that fails a residency rule, cannot support the heat load, or cannot meet the production date should be eliminated regardless of price.
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| Decision question | Evidence to attach to the score |
|---|---|
| Will the workload fit? | Location, latency, residency, density, cooling, access, and delivery schedule. |
| Will power and networks survive a component failure? | Electrical one-line, circuit design, route diagrams, maintenance procedures, and test records. |
| What happens when service fails? | SLA definition, exclusions, notification, remedy, escalation, and incident reporting. |
| Can the deployment grow? | Reserved capacity, expansion lead time, pricing, minimums, and term provisions. |
| What will it really cost? | Sample invoice, rate card, metering method, escalators, support usage, and exit charges. |
| Can claims be audited? | Current certifications, site scope, PUE methodology, sustainability records, and reporting rights. |
Common comparison mistakes and their fixes
Choosing by tier alone
Failure: treating Tier III or Tier IV as a universal quality ranking. Fix: verify the exact site’s capabilities against your failure tolerance, SLA, workload, and budget.
Comparing different power assumptions
Failure: comparing one quote based on reserved kW with another based on metered energy. Fix: model both under identical load, cooling, overage, and growth assumptions.
Accepting “carrier neutral” as path diversity
Failure: assuming several carrier logos mean separate physical routes. Fix: require entrance, conduit, riser, meet-me-room, and upstream path diagrams, including shared-risk disclosures.
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Failure: accepting an audit that excludes your building or data hall. Fix: obtain the current report, scope, exceptions, dates, and customer review rights for the exact facility.
Ignoring operational charges
Failure: selecting a low rack price while omitting cross-connects, remote hands, installation, taxes, escalators, or exit costs. Fix: compare a complete five-year bill of materials and request a sample invoice.
Assuming redundancy means zero risk
Failure: treating redundant components as a guarantee against outages. Fix: connect engineering evidence to the SLA, maintenance rules, incident history, and your own equipment and network design.
Contracting and acceptance
Attach the technical schedule, rate card, SLA, security exhibits, audit scope, support catalogue, expansion terms, and sustainability commitments to the agreement. Define acceptance tests for power circuits, cooling conditions, network cross-connects, access controls, monitoring, and incident contacts before equipment arrives.
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At handover, verify the delivered configuration against the signed schedule: cabinet dimensions, usable kW, A/B circuits, metering, temperature and humidity readings, carrier demarcations, route diversity, badge access, camera coverage, remote-hands process, and escalation contacts. Keep a change log for every later modification. This evidence gives procurement and operations a common baseline when capacity, price, or service performance changes.
Final decision rule
Select the provider whose exact facility passes every mandatory workload test and offers the strongest documented combination of resilience, connectivity, security, support, scalability, total cost, and site-specific sustainability evidence. If a material item remains unanswered, treat it as a commercial and operational risk to resolve in writing—not as proof that the facility meets the requirement.
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