If you are part of a data center-related business in California, Nevada, Texas, or Utah itself, there are many benefits to contracting with a Utah colocation services provider. Some of the characteristics that make Utah colocation services a great opportunity for data center businesses include:

  • Electric power costs are lower than the national average (6.6 cents/kWh, which is half of California rates and 4 cents/kWh less than the national average)
  • The region has few occurrences of natural disasters (minimal regional flooding occurred last in 2005)
  • Low labor costs and abundant technology talent in the area
  • Cooler temperatures in the region provide opportunities for lower-cost cooling of servers during nine months of the year
  • High-quality infrastructure in the area for telecommunications and power grid
  • A short plane ride from California, Texas, or Las Vegas

Cites like Orem and Salt Lake City are close to central sources of power and fiber optic cabling.


Colocation Pricing

Many companies who are paying high cloud service fees for public or private Cloud, find switching to owning their servers and leasing infrastructure from a colocation provider to be more affordable than fully managed services.

Some data center service providers in Utah offer colocation clients Network Operating Center services, higher levels of physical and digital security, and other value-add offerings that impact pricing.

Most colocation service providers have you contact them for a price quote based on your unique bandwidth needs or the number of cabinets or RMUs (Rack Mounted Units).

Monthly colocation services tend to run in the following price ranges:

  • Between $95-$175 per RMU
  • Between $300-$500 per half rack or half cabinet
  • Between $500 and $1,500 per full rack

Start-Up Fees

There are start-up fees and other premium services for services such as security, redundant power, backups, engineer consulting, and load balancing. These services impact the price accordingly. Utah has telecommunications services available for data center service companies from tier-one vendors.

The Bottom Line

Whether you are seeking to build a data center in Utah or contract the services of an existing Utah colocation provider for your server architecture, there are many advantages to doing business in the “Silicon Slopes” state. The labor force, climate, cost of power, and available dark fiber infrastructure provide opportunities for high levels of available services.

Not having to worry about earthquakes, floods, or hurricanes can bring your business a great deal of peace of mind and lower insurance costs. Utah’s government is highly supportive of new technology entrants who are respectful of the environment and support the local economy.

 What benefits do you see to contracting with a Utah colocation services provider? Please share your thoughts in the Comments section below.


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