Data Center Colocation Costs from Top Indian Providers

In 2024, India’s data economy crossed $20 billion, with data center investments growing at a CAGR of over 11%. Fuelled by rapid digitization, cloud adoption, and government-led initiatives like Digital India, businesses across the spectrum—from fintech startups to global SaaS providers—are turning toward colocation services instead of building their own infrastructure.

According to CRISIL, India is expected to double its data center capacity by 2026, with Tier I cities like Mumbai, Chennai, and Noida leading the charge. This surge is also driven by the growing trust in cloud platforms like Cyfuture Cloud, where companies seek a balance of performance, flexibility, and data control.

With that context, the big question is: How much does data center colocation really cost in India? And more importantly, is it worth the investment when compared to managing your own servers or going fully cloud-native?

Let’s break down the data center colocation costs from some of India’s top providers and understand what goes into the pricing.

What is Data Center Colocation? A Quick Recap

In simple terms, colocation (or colo) allows businesses to place their servers and hardware in a third-party provider’s data center facility. You get access to physical space, power, cooling, bandwidth, and security infrastructure—all while retaining full control over your own servers.

It’s different from renting cloud resources, as you own the hardware, but you don’t have to worry about maintaining the physical environment. For businesses with strict compliance requirements or specialized hardware needs, colocation offers the perfect middle path.

Providers like Cyfuture Cloud specialize in hybrid infrastructure—giving businesses the freedom to colocate hardware while tapping into cloud-based hosting services for scalability and redundancy.

Key Factors That Influence Data Center Colocation Costs

Before we jump into provider-wise costs, let’s unpack what makes up a colocation bill in India. Unlike cloud server pricing which is often usage-based, colocation pricing depends on physical resources and long-term contracts.

Here’s what typically determines data center colocation costs:

1. Rack Space

Measured in U (rack units), half racks (20U), full racks (42U), or private cages

The more U you occupy, the higher the cost

Prices are also impacted by the data center’s Tier rating (I to IV)

2. Power Requirements

Charges vary based on kilowatt (kW) consumption per rack

Most providers charge by kW/month

High-density setups (10 kW or more) are more expensive

3. Bandwidth

Comes bundled or metered depending on your needs

Connectivity to ISPs, cloud providers, or private networks can affect pricing

4. Remote Hands and Support

Charges apply if you need staff to physically manage hardware

Emergency support or 24/7 monitoring services may be added separately

5. Security and Compliance

Facilities with certifications like ISO 27001, PCI-DSS, or HIPAA usually come at a premium

Biometric access, surveillance, and multi-layer security also factor into the cost

Data Center Colocation Costs: Breakdown by Top Indian Providers

Let’s now look at the approximate colocation pricing from India’s leading data center players, based on publicly available data and industry research.

Note: Actual prices may vary depending on the location, specific requirements, contract duration, and value-added services.

1. Cyfuture Data Centers (Noida, Jaipur, Bengaluru)

Known for its scalable Cyfuture Cloud and Tier III certified data centers.

Half Rack (20U): ₹45,000 – ₹60,000/month

Full Rack (42U): ₹90,000 – ₹1.2 lakh/month

Power: 3–6 kW per rack included

Bandwidth: Starts at 100 Mbps, scalable

USP: Supports hybrid setups with Cyfuture Cloud and managed IT services

Ideal for businesses looking for end-to-end control with optional cloud-native tools for burst traffic or DR setup.

2. NTT Global Data Centers (Mumbai, Chennai, Bengaluru)

One of the largest players with highly secure and carrier-neutral facilities.

Half Rack: ₹60,000 – ₹80,000/month

Full Rack: ₹1.2 – ₹1.5 lakh/month

Power: Billed per kW, approx ₹8,000–₹10,000 per kW

Bandwidth: Pay-per-use or bundled options

Suitable for enterprises and BFSI clients with global connectivity needs and stringent compliance requirements.

3. STT GDC India (formerly Tata Communications)

Operates 18+ data centers with a focus on large-scale deployments.

Full Rack: ₹1.3 – ₹1.7 lakh/month

Custom Cage Options Available

Power: High-density available (up to 12kW/rack)

Security: ISO, SOC, and PCI certifications standard

A strong choice for companies handling sensitive customer data or regulated industries.

4. CtrlS Data Centers (Hyderabad, Mumbai, Noida)

Known for ultra-secure facilities and environmental sustainability.

Full Rack: ₹1 – ₹1.4 lakh/month

Power: Up to 8kW included

Bandwidth: 100 Mbps to 1 Gbps

Certifications: LEED Platinum, ISO 22301

Great for eco-conscious companies with green IT goals and high uptime SLAs.

5. Web Werks – Iron Mountain (Pune, Navi Mumbai)

Mid-sized data center with colocation and cloud integration capabilities.

Half Rack: ₹40,000 – ₹55,000/month

Full Rack: ₹85,000 – ₹1 lakh/month

Bandwidth & Power: Flexible plans

USP: Affordability and cloud connect services

Ideal for startups, media firms, and mid-size enterprises exploring colocation for the first time.

Colocation vs Cloud: When to Choose What?

With Cyfuture Cloud and other cloud platforms gaining traction, many companies often ask: “Why not just go fully cloud-native?”

Here’s when colocation makes sense:

A hybrid cloud model—running critical hardware in colocation and scaling via Cyfuture Cloud or AWS—offers the best of both worlds. It’s cost-effective, flexible, and resilient.

Conclusion: Finding the Right Fit for Your Business

Colocation isn’t just about leasing rack space—it’s about ensuring business continuity, data security, and control in an ever-evolving digital environment. As we’ve seen, data center colocation costs in India can range widely depending on provider, location, and power usage—but the benefits often outweigh the costs.

From startups scaling cautiously to enterprises migrating from legacy infrastructure, colocation provides a stable middle ground between full-on cloud dependency and managing physical servers in-house.

If you're considering colocation, don’t just chase the cheapest price. Look for providers like Cyfuture, who not only offer competitive pricing but also integrated cloud services, managed security, and compliance assurance—all bundled in one.