India’s IT infrastructure is undergoing a major transformation. From cloud-first startups to enterprise workloads shifting out of legacy server rooms, colocation hosting is becoming a central piece in digital strategy. As per JLL’s 2024 India Data Center Report, India’s data center capacity is expected to cross 1,700 MW by 2026, led by cities like Mumbai, Hyderabad, Noida, and Chennai.
But here’s what businesses are increasingly asking —
“What does it actually cost to colocate a full rack in India?”
Whether you're a SaaS company with rapidly growing backend needs or a retail enterprise running a heavy ERP and POS system, understanding full rack colocation pricing is critical for long-term infrastructure planning.
This blog walks you through the actual cost structure of a full rack colocation setup across leading Indian data centers, what factors shape these costs, and how to ensure you're not overpaying while meeting performance, power, and compliance requirements.
Let’s decode the term.
A full rack colocation refers to renting an entire server rack (usually 42U or 47U in height) from a data center to house your own IT hardware. The hosting provider offers:
Rack space with cooling and power
Network connectivity (public or private)
Physical and digital security
Optional remote hands and support services
Compared to shared colocation (1U or quarter rack), full rack hosting provides exclusive access, better security, dedicated bandwidth options, and far more flexibility — especially for growing infrastructure needs.
Now let’s get into the meat of it — what you’re actually paying for every month. Full rack colocation pricing can vary widely depending on several interlinked components:
1. Rack Space Rental (Base Cost)
This is the foundational component — renting physical rack space in a data center.
Standard 42U rack in Tier-III data centers
Lockable cabinet with front and rear access
Redundant power feeds and cooling access
Estimated cost in India:
₹25,000 – ₹60,000/month depending on city, facility certification, and provider tier.
Premium racks in Mumbai or Bengaluru can hit ₹75,000+, especially in Tier-IV facilities with SLA commitments.
Power is often a bigger cost than the rack itself. Full racks draw between 2 kVA to 8 kVA depending on your server density and hardware efficiency.
Pay-per-kVA model is most common.
Some providers offer flat-rate or bundled models.
Typical charges:
₹8,000 – ₹20,000/month per kVA.
So a rack drawing 4 kVA may cost you ₹32,000 – ₹60,000/month just in power.
Tip: Opt for energy-efficient servers to reduce the heat footprint and lower your total power bill.
Network access is another major chunk of your colocation hosting spend.
You can choose:
Shared bandwidth (typically 100 Mbps to 1 Gbps)
Dedicated unmetered line (for high-throughput apps)
Cross-connects (to your cloud or telecom provider)
Estimated cost:
₹4,000 – ₹10,000/month for 100 Mbps shared bandwidth
₹12,000 – ₹25,000/month for 1 Gbps dedicated line
Cloud integration (e.g., AWS Direct Connect or Cyfuture Cloud interlink) may incur additional charges.
You may need on-ground help for:
Server reboots
Patch cable replacements
KVM console access
OS reinstallation or updates
These are either bundled or offered at ₹500 – ₹1,500/hour, with monthly support packages available.
Providers like Cyfuture include a baseline support SLA in their full rack pricing, with optional premium managed hosting plans.
Depending on your industry (especially BFSI, healthcare, or government contracts), you may need:
Firewalls and DDoS protection: ₹2,000 – ₹10,000/month
Backup and disaster recovery setup
Compliance reports: SOC2, ISO 27001, PCI DSS
Biometric access, CCTV recording, dual authentication
These add incremental costs but are often non-negotiable in regulated environments.
Let’s compare what some of the top names in the Indian colocation hosting space offer:
Provider |
Rack Rental (INR) |
Power (per kVA) |
Bandwidth |
Locations |
Cyfuture Cloud |
₹29,000 – ₹49,000 |
₹9,000 – ₹16,000 |
100 Mbps @ ₹5,000 |
Noida, Jaipur, Chennai |
Netmagic (NTT) |
₹50,000+ |
₹12,000 – ₹20,000 |
Custom quote |
Mumbai, Bangalore |
CtrlS |
₹55,000+ |
₹15,000+ |
Tiered pricing |
Hyderabad, Noida |
STT GDC India |
Enterprise custom |
Enterprise custom |
Private peering available |
Pan-India Tier-I cities |
Sify Technologies |
₹45,000 – ₹60,000 |
₹10,000 – ₹18,000 |
Starting at ₹4,000 |
Chennai, Mumbai |
Cyfuture Cloud stands out as a more accessible option for startups, fintech firms, and SMBs with a need for full rack setups in certified data centers — minus the enterprise-level price tag.
Let’s do the math for a practical scenario.
Rack rental: ₹35,000/month
Power draw (4 kVA): ₹12,000 x 4 = ₹48,000/month
Bandwidth (shared 200 Mbps): ₹7,500/month
Support & monitoring: ₹2,000/month
Firewall & backup: ₹3,000/month
Total monthly spend: ₹95,500
Annual spend (with discounts): ₹10.5 – ₹11 lakh/year
Depending on the provider, bundling services or committing to 12-month terms can help bring this down by 10–15%.
Not all cost savings come from cutting corners. Here's how smart businesses are optimizing their colocation hosting spend:
Retire inefficient servers. Replace older 2U machines with 1U or blade servers that offer better compute-per-kW ratios.
Colocation providers often offer 10–20% discounts on 1–3 year commitments. If your infrastructure is stable, lock it in.
Instead of Tier-I cities, explore colocation in emerging data center hubs like Noida, Jaipur, or Pune. Cyfuture’s Noida & Jaipur facilities offer full rack options at 15–20% lower rates with the same Tier-III standards.
Keep critical workloads in the rack, but move auxiliary processes (like analytics, backup, staging environments) to the cloud. A hybrid setup reduces power and rack usage while giving you better scalability.
Instead of splitting services (rack from one, bandwidth from another, support from a third), choose a provider that offers it all under one umbrella — from cloud integration to colocation. This reduces complexity and cost.
Ten years ago, full rack colocation was something only enterprises with data-heavy workflows considered. Today, with scalable bandwidth needs, compliance mandates, and digital-first operations, even mid-sized businesses and growth-stage startups are opting for dedicated rack space in cloud-ready data centers.
By understanding what drives full rack colocation pricing, and choosing providers like Cyfuture Cloud who offer transparent billing, flexible configurations, and managed support — businesses can take full control of their infrastructure without blowing up their IT budgets.
If you're ready to scale your infrastructure and want enterprise-grade stability without enterprise-level costs, full rack colocation might be exactly what your stack needs.
Let’s talk about the future, and make it happen!
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