Our client was evaluating multiple colocation providers across key U.S. markets, including Northern Virginia, Silicon Valley, and Minneapolis. While initial pricing appeared competitive, the client lacked a clear view of whether contract terms, power costs, and interconnection fees were truly aligned with the market.

The client also faced a broader strategic decision: whether to remain in its existing facility and renegotiate terms or relocate to a new provider and facility. That required more than a simple pricing comparison. It required a clear understanding of contract competitiveness, long-term cost exposure, and the full financial cost and operational impact of a potential migration.

Because colocation agreements are typically long-term, the client needed confidence that it was not locking into above-market pricing or underestimating the real cost and complexity of moving to a new environment.

TC2 conducted a comprehensive colocation pricing and contract assessment across all target markets and providers while also developing a detailed business case for relocation versus in-place optimization. We benchmarked rack, cage, and site pricing against current market data and normalized the different power pricing models so the client could make meaningful comparisons across providers, including differences such as kW versus kVA and committed versus burst usage. 

We also evaluated cross-connect and interconnection fees, reviewed key contract terms including escalators, renewal, and termination provisions, and assessed the costs associated with relocating and standing up a new colocation environment. This included the financial and operational considerations tied to migration, deployment, and ongoing service requirements. 

By bringing these inputs together into a single financial comparison of staying versus moving, TC2 gave the client a clearer view of both immediate savings opportunities and longer-term cost optimization strategies. Instead of making the decision based on surface-level provider pricing alone, the client could weigh the full economic and operational implications of each path.