How much does colocation cost for a UK business in 2026

How much does colocation cost for a UK business in 2026

7 min read

What UK colocation costs in 2026, from £44 a month for one server to a private 42U rack, with a worked rack bill and a checklist for comparing quotes.

CTC Staff
Written by CTC Staff House editorial team

A single server can be colocated in a UK data centre from £44 a month plus VAT, and a private 42U rack starts from around £259 to £650 a month before power and bandwidth. The monthly total depends on three things you can measure today, which are the amps your kit draws, the transfer you need and how many times a month someone has to touch the hardware. Work those out first and the quotes become easy to compare.

What does single-server colocation cost in the UK?

UK Servers lists three single-server packages. Colocation 100 is £44 a month plus VAT with up to 0.4A of power and 20TB of monthly transfer. The next package up is £79 a month plus VAT with up to 1A, and the third is £99 a month plus VAT with up to 1A. Installation and racking are included, along with four 15-minute remote-hands requests a month.

In London, VeloxServ lists 1U at £55 a month with 0.5A and 10TB of transfer, 2U at £75, 3U at £90 and 4U at £105. Check on its quote whether VAT is on top.

Published monthly price of single-server colocation

Monthly price of entry packages as published, checked 4 November 2026. UK Servers prices exclude VAT.

Published monthly price of single-server colocationMonthly price of entry packages as published, checked 4 November 2026. UK Servers prices exclude VAT.£0.00£25.00£50.00£75.00£100.00£125.00UK Servers 0.4AUK Servers 0.4AVeloxServ London 1UVeloxServ Londo…VeloxServ London 2UVeloxServ Londo…UK Servers 1AUK Servers 1AVeloxServ London 3UVeloxServ Londo…UK Servers 1A 4UUK Servers 1A 4UVeloxServ London 4UVeloxServ Londo…UK Servers 0.4A, £ per month: £44.00VeloxServ London 1U, £ per month: £55.00VeloxServ London 2U, £ per month: £75.00UK Servers 1A, £ per month: £79.00VeloxServ London 3U, £ per month: £90.00UK Servers 1A 4U, £ per month: £99.00VeloxServ London 4U, £ per month: £105.00
View the data
Published monthly price of single-server colocation
Category£ per month
UK Servers 0.4A£44.00
VeloxServ London 1U£55.00
VeloxServ London 2U£75.00
UK Servers 1A£79.00
VeloxServ London 3U£90.00
UK Servers 1A 4U£99.00
VeloxServ London 4U£105.00
Source: UK Servers and VeloxServ colocation pages, November 2026

These offers are time-limited and were checked on 4 November 2026, so confirm on the brand's own site before you buy. The figures are published tariffs, not a national average, and they show where small deployments start rather than what the cheapest possible service costs.

Why power matters more than rack units

Compare the power allowance before you compare the height of the server. UK Servers' £44 package allows 0.4A, while its £79 package allows 1A, so the extra money buys electrical headroom as well as a different tier. If your server draws more than the allowance, UK Servers lists overage power at £8 a month per 0.1A.

Measure the real draw from your power distribution unit or the server's management interface at normal and busy load, then pick a package with room above that. A server that sits at 0.35A in the quiet hours and peaks above 0.4A will cost more than its headline price suggests.

How much is a quarter, half or full rack?

Rack prices vary because operators bundle different things. Netwise lists a lockable 10U quarter rack at £119 a month, a 20U half rack at £209 and a 42U full rack at £259, with power, ports and addresses priced as separate lines. Fast2host lists a 10U quarter cabinet from £250 a month, a 21U half cabinet from £425 and a private 42U cabinet from £650, with dual power feeds and network ports in the description.

Published monthly starting price of quarter, half and full racks

Starting monthly price for each rack size. Netwise lists space only, while Fast2host lists packages, so the two are not like for like.

Published monthly starting price of quarter, half and full racksStarting monthly price for each rack size. Netwise lists space only, while Fast2host lists packages, so the two are not like for like.Netwise space o…Fast2host from,…£0.00£200.00£400.00£600.00£800.00Quarter rackQuarter rackHalf rackHalf rackFull 42U rackFull 42U rackQuarter rack, Netwise space only, £ per month: £119.00Half rack, Netwise space only, £ per month: £209.00Full 42U rack, Netwise space only, £ per month: £259.00Quarter rack, Fast2host from, £ per month: £250.00Half rack, Fast2host from, £ per month: £425.00Full 42U rack, Fast2host from, £ per month: £650.00
View the data
Published monthly starting price of quarter, half and full racks
CategoryNetwise space only, £ per monthFast2host from, £ per month
Quarter rack£119.00£250.00
Half rack£209.00£425.00
Full 42U rack£259.00£650.00
Source: Netwise colocation calculator and Fast2host colocation page, November 2026

The two sets of numbers are not like for like. One shows space with extras priced separately, and the other shows packages with power feeds and bandwidth described in the offer. Ask each bidder for a quote for the same load, port speed and bandwidth, and compare the totals.

What does a full rack really cost per month?

Netwise's calculator shows the building blocks well. It lists £70 a month per amp of power, £30 a month for dual A and B feeds with PDUs, and £2 a month per IPv4 address. For a 42U rack with 4A of power, dual feeds and one address, the visible components are £259 plus £280 plus £30 plus £2, which comes to £571 a month, or £6,852 over twelve months.

That is our own sum from published prices, not a quote. It leaves out any bandwidth commitment and VAT, and it assumes 4A suits your equipment. Its value is in showing how the same cabinet price can produce a very different bill once power is added.

When does colocation beat a server room or your own data centre?

Colocation fits when you want the building, power, cooling and connectivity without owning them. VeloxServ states that you supply the hardware and it supplies power, cooling and connectivity, and Fast2host describes housing customer servers in its own UK data centre from single-server space to private cabinets. That splits the facility decision from the application decision.

A server room or owned facility deserves a closer look when demand is predictable, you are willing to staff and maintain the building, and a lifecycle cost model supports the investment. We found no public figure for the point at which owning becomes cheaper, so run your own comparison with space, power, cooling, staffing, resilience and connectivity for each option over five years.

Two practical questions decide many cases. First, can the business keep working if the wide-area link fails? If not, keep some processing on site. Second, who patches, backs up and restores the system? A facilities service level agreement does not replace your recovery plan.

Which UK colocation providers are worth shortlisting?

There is no reliable customer-share ranking, so we cannot call any provider the most popular. A use-case shortlist is more honest, and every row below comes from the operator's own page.

If you needLook atWhy
One existing server at a low entry priceUK ServersPublished packages from £44 a month plus VAT with clear power and transfer limits
A small London slotVeloxServ1U to 4U London packages priced from £55 a month
A rack where you choose the power and portsNetwiseSpace, amps, ports and addresses priced as separate lines
A private cabinet in a Cambridge facilityFast2hostQuarter, half and full cabinets from £250, £425 and £650 a month
Dense London interconnectionTelehouseSays customers can connect to over 1000 carriers, ISPs and ASPs

Telehouse is the one to look at when your application depends on particular networks. It describes five London data centres and says its close proximity to the City and Canary Wharf makes it a low-latency point for trading exchanges. It publishes no standard tariff on that page, so you will need a quote. If your users are mostly outside London, ask for measured latency to your own endpoints before you pay for a London address.

Which connectivity has flexible terms for a new factory site?

Flexible bandwidth and flexible contract length are different things, so check both. Three Business Broadband offers 12 or 24 month plans with no upfront costs, unlimited UK data and a 30 day money-back guarantee. That suits a new site that needs to be online quickly while a permanent connection is arranged.

Vodafone's Dedicated Internet Access is described as a private, uncontended connection with bandwidth you can scale. Its displayed offers run on 60 month terms, and it charges no connection fees on its 36 month and 60 month contracts, subject to a site survey. We did not find a rolling-month factory service in the pages we checked, so ask any supplier about relocation, early termination and adding sites in writing.

A sensible pattern for a staged rollout is a quick, tested opening-day link followed by a separately procured permanent circuit.

What should you check for UK data protection?

If the provider will process personal data for you, UK GDPR expects a written contract with the right terms. The ICO's guidance on what a controller and processor contract must include lists the minimum terms, including processing only on the controller's documented instructions. The ICO notes that this guidance is under review following the Data (Use and Access) Act, so check for updates.

A space-only arrangement, where the provider cannot read your data, may sit differently from a managed service. Ask your data protection adviser which applies to you before you sign.

How do you choose a provider?

Start with your measurements and a short list of questions. Ask each provider for the same written specification, then compare totals.

  • What power is included, and what happens above it?
  • How much transfer and which port speed are included?
  • How many remote-hands requests are included, and what does an extra one cost?
  • What is the minimum term, and how much notice is needed to leave?
  • Which exact building will hold your equipment, and can you visit it?

Visit the building if you can. Look at access control, power and cooling arrangements, and how deliveries and engineer visits work. A quote that answers all five questions in writing is usually the one to take forward.

Sources

Frequently Asked Questions

Which colocation providers are most popular in the UK?

We found no reliable customer-share ranking, so we shortlist by use. UK Servers and VeloxServ publish small-server prices, Netwise and Fast2host publish rack prices, and Telehouse suits London interconnection.

Which connection suits a new factory site?

Three offers 12 or 24 month broadband plans, while Vodafone's dedicated access shows 60 month offers. Ask about relocation and early exit before you sign either.

How much does colocation cost in the UK?

Published entry prices start at £44 a month plus VAT for one server and £55 a month for a London 1U slot. A private 42U rack starts from £259 to £650 a month before extras such as power and bandwidth.

Are there affordable colocation options for small businesses?

Yes. Single-server packages from UK Servers and VeloxServ start at £44 and £55 a month, so a small business does not need to rent a whole rack. Check the power allowance first.

When should a company use colocation instead of building its own data centre?

Use colocation when you want to buy facilities rather than own them, or when demand is uncertain. Consider building only if a full lifecycle model supports it.

Does the price include power and bandwidth?

It depends on the provider. UK Servers includes up to 0.4A and 20TB in its entry package, while Netwise prices power per amp as a separate line. Ask for the full total.

Do I need a contract for data protection?

If the provider processes personal data for you, UK GDPR expects a written controller and processor contract. The ICO lists the minimum terms.