Affordable colo providers within the US?

Started by diy05, Jun 17, 2022, 05:39 AM

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diy05Topic starter

I was browsing the dnray offers section and noticed that most of the deals offered by providers were for full 42U racks, which is more than I require.
Due to the shortage of IPv4 addresses, pricing has been impacted, making it difficult to find a provider that matches my previous provider's pricing (sub $200/month for 1/4 rack with /26 IP block). Although some providers offer full racks for $400, this is twice the cost of my current provider.

I have identified two potential providers within my budget, namely DACENTEC and Joe's Datacenter, both of which are located in the USA. However, I was wondering if you could recommend any other established datacenter providers that could meet my requirements and budget.


It seems that those two providers, DACENTEC and Joe's Datacenter, may be some of the only viable options for someone with a very low budget due to the lack of profitability in the colocation side of things.

 Many hosting companies are finding it difficult to offer colocation at dirt-cheap prices as IP address prices have gone up considerably, along with power and space costs. HE has a good offer for those who don't require significant power, but increased requirements of data centers have tripled the amount of power commitment per rack, making cheap colocation offers nearly impossible.
 Unfortunately, there aren't many low-cost options available, and those that do exist may have limited room for profits, so it is crucial to choose a trusted provider to avoid any potential issues.


It seems that margins are tight for colocation providers since they offer just commodity space and power. Single server colo customers can be more challenging to deal with due to the inherent complexity of working with half-broken equipment that doesn't match the data center's usual configuration. Customers expect fixes without wanting to pay extra for labor costs, which poses problems for colocation providers.

 Conversely, dedicated server customers can be more straightforward to serve as providers have already learned which equipment to use to avoid compatibility issues. Dedicated servers can also be sold at higher prices, allowing providers to recoup any labor costs over time. Partial rack colo presents additional logistical challenges because creating physically partitioned partial racks is not easy or cheap. Furthermore, PDU options are often limited, and circuit sizes may exceed what many customers need for a 1/4 cab.

Due to the high cost of power and cooling in DCs, it may make more sense for colocation providers to focus on full cabs and set lower minimum power levels for those cabins. This provides room for growth as customers add servers and helps keep cooling and power density in check.


Thank you for providing additional context on smaller circuits. I understand now that in the US, traditionally, colocation providers have offered fully committed circuits where customers pay for the circuit size regardless of whether they use it or not.

This billing model is convenient as it allows providers to predict revenue and costs without having to measure usage. As for burstable circuits, providers like yourself are not fans of this approach as it can lead to issues where customers exceed what they're paying for and don't want to pay more. In Europe, the minimum circuit size is generally larger than in the US, allowing for more variations in power usage which may make it more common in that region to offer an "actual use" colo model where customers only pay for what they need.

However, in the US, where the smallest circuit size is usually 15 or 20a 120v, it is typically easier for providers to assume each customer needs at least one circuit and charge accordingly.


InterServer is a web hosting provider based in the US that has been around since 1999 with servers exclusively located in US data centers. They are a great choice for targeting a US audience and offer unique web hosting plans, such as GPUs and Rapid Deploy servers, which makes them ideal for mission-specific websites.

On the other hand, Hostinger was established in 2004 in Kaunas, Lithuania, and now has a presence in over 190 places worldwide, including the US. They have a wide range of products at affordable prices and multiple strategically located data centers, making them an attractive option for those looking for competitive pricing. Hostinger provides hosting solutions for both domestic and international markets and caters to basic and niche needs, such as VPS hosting for Minecraft or CyberPanel.


I can provide you with some established datacenter providers you may want to consider based on their reputation in the industry:

1. Equinix: Equinix is a global datacenter provider with a wide range of services and locations. They offer a variety of hosting options and have an extensive network of datacenters worldwide.

2. Digital Realty: Digital Realty is another well-known datacenter provider with a vast portfolio of facilities. They offer a range of colocation and interconnection solutions, catering to different business needs.

3. CoreSite: CoreSite operates datacenters in several major U.S. markets. They provide colocation, cloud, and connectivity services and are known for their high-performance infrastructure.

4. Cyxtera Technologies: Cyxtera has a strong presence in the datacenter industry, offering colocation, managed services, and security solutions. They have datacenters in various locations across the United States.

5. QTS Data Centers: QTS owns and operates datacenters across North America and Europe. They provide colocation, cloud, and managed services, catering to different enterprise requirements.

6. Internap: Internap offers a range of colocation, cloud, and network services. They have datacenters in several locations globally and provide tailored solutions for businesses of different sizes.

7. CyrusOne: CyrusOne is a leading datacenter provider with a global footprint. They offer scalable colocation solutions along with connectivity and cloud services.

8. TierPoint: TierPoint operates datacenters across the United States and provides a range of colocation, cloud, and managed services. They have a strong focus on security and compliance.

9. Rackspace: Rackspace is a well-known provider of managed hosting services and cloud solutions. They have datacenters around the world and can assist with custom infrastructure requirements.

10. IO Data Centers: IO Data Centers specialize in software-defined datacenters. They offer colocation, cloud, and managed services with a focus on performance, scalability, and efficiency.