Colocation Pricing Models Explained – Per Rack or Per U?

Colocation pricing models commonly charge customers based either on full rack rental or per rack unit (U) usage. A full rack pricing offers a dedicated cabinet space (usually 42U) at a flat rate, suited for larger deployments. Per U pricing bills based on the vertical space occupied within a rack, ideal for smaller or growing deployments. Each model balances cost-effectiveness, flexibility, and power consumption, with Cyfuture Cloud providing tailored options to fit various business needs.

What is Colocation Pricing?

Colocation pricing refers to the fees charged by data centers to host your IT infrastructure within their facilities. Prices depend on physical space, power consumption, bandwidth, and additional services. Two prominent pricing models in colocation are Per Rack and Per U (rack unit). Each caters to different scales and infrastructure requirements.

Understanding Per Rack Pricing Model

Per rack pricing means renting an entire server rack or cabinet—typically 42 rack units (U), where one U equals 1.75 inches in height. This model is suited for businesses with extensive hardware deployments, offering dedicated physical space, power provisioning, and network connectivity.

The benefits of full rack rental include:

Dedicated, secure, and private hardware space

Simplified pricing with a fixed monthly rate

Suitable for large deployments requiring consistent power and cooling

Easier scaling when acquiring multiple racks

Typically, the cost for a full rack includes space, power allocation, and access. It can vary significantly based on location, power density, and data center service level.​

Understanding Per U (Rack Unit) Pricing Model

Per U pricing charges customers based on the number of rack units their equipment occupies within a shared rack. This granular billing suits smaller businesses or those testing deployment sizes, as it avoids paying for unused space.

Key points of the Per U model:

Payment corresponds to actual space used, offering cost efficiency

Suitable for smaller or growing IT infrastructure

Often has a minimum U commitment, typically starting at 1U or 1/4 rack

Space is combined with power and bandwidth charges based on consumption

Pricing for each U can range widely depending on factors like power usage and location. This flexibility is beneficial for businesses with fluctuating requirements or limited initial infrastructure.​

Factors Influencing Colocation Pricing

Several factors impact cost beyond just rack or U space:

Power Usage: Higher power density (kW per rack or U) increases costs. Many providers price power separately or bundled with space.

Location: Data centers in prime urban or tech hub locations carry higher real estate and operational costs.

Connectivity: Network access options, bandwidth, and cross-connect fees can add to pricing.

Security and Space Type: Private cages or suites come at premium pricing compared to shared racks or cabinets.

Additional Services: Remote hands, installation support, monitoring, and disaster recovery services add to fee structures.​

Benefits of Each Pricing Model

Choosing the right model depends on infrastructure size, growth plans, and budget.

How Cyfuture Cloud Supports Your Colocation Needs

At Cyfuture Cloud, customers receive expert consultation to select the ideal colocation pricing model. Whether it’s a full rack, partial rack (per U), or hybrid, Cyfuture Cloud offers flexible and scalable options tailored to the business’s IT infrastructure demands and budget constraints.

Our services include:

Customized pricing plans based on space, power, and bandwidth usage

Support for private cages and full suites where enhanced security is needed

Transparent billing and expert guidance for scaling your environment cost-effectively

Additional managed services like remote hands, security, and disaster recovery options

Cyfuture Cloud’s team ensures you only pay for what you need while maintaining room for growth and reliability across your colocation journey.​

Frequently Asked Questions (FAQs)

Q: How much does 1U typically cost?
A: Costs can range from $50 to $300 per month per U depending on power requirements, data center location, and additional services.​

Q: What rack size is standard?
A: The standard rack is 42U high, but some providers offer custom sizes depending on your equipment needs.​

Q: Can I start with per U and upgrade to a full rack?
A: Yes, many providers offer flexible plans to scale from per U to full rack or cage solutions as your infrastructure grows.​

Q: Are power costs included in rack rental?
A: This varies by provider. Some bundle space and power; others price power consumption separately based on kW usage.​

Conclusion

Understanding colocation pricing models — whether per rack or per U — is essential for businesses optimizing IT infrastructure costs. Full rack pricing offers simplicity and dedicated space for larger deployments, while per U pricing provides flexibility and cost efficiency for smaller, growing setups. Cyfuture Cloud stands out by offering tailored pricing solutions, expert guidance, and scalable options that align with your technical and budgetary requirements, enabling you to focus on business growth with confidence.