Why your colocation bill doubles at renewal (and how to avoid it)
Almost every IT buyer knows the pattern: an attractive teaser rate in year one, then a bill that swells, sometimes doubles, at renewal. This is not bad luck; it is a business model. Understanding it is the first step to protecting yourself from it.
Estimate my cost →How the bill inflates #
- The teaser rate: the entry price is a promotion, not the real price.
- Energy indexation: in colocation, electricity is often passed through and revised.
- Forgotten recurring fees: cross-connects, remote hands, IP transit above a threshold. Minor one by one, decisive together.
- Lock-in: a low rate in exchange for a long term, with exit terms that keep you in place.
How to read a quote before you sign #
Always separate the promotional price from the recurring price. Ask for the energy indexation clause and its basis. Have every recurring item listed, not just the space rent. Check the renewal and termination terms.
The fix: compare on an identical basis #
The solution is to normalize every offer into a fully apples-to-apples, all-inclusive comparison, and to demand full visibility into where every number comes from. An offer that hides how it is calculated is setting up the renewal surprise.
FAQ #
Yes, and that is the moment to do it. Have a cap on increases and the energy indexation basis written into the original contract.
Written on 1 September 2026.
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