Colocation agreement template 2025

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Colocation is the provision of data center infrastructure as a managed service. A colocation agreement is a framework for the provision of this service. As such, it is a key document for both the client and the colocation provider.
The space is shared with other organizations that also house their systems with the same provider. You can typically rent colo space by rack, cabinet, cage or room. In a colocation agreement, the customer brings all the necessary hardware or agrees to lease it from the provider.
A rental agreement differs from a lease agreement in that it is not a long-term contract and usually occurs on a month-to-month basis. This month-to-month lease agreement expires and then renews each month upon agreement of the parties involved.
A colocation service agreement is a legal contract between providers and customers. It outlines the conditions of your tenancy, each partys responsibilities and the costs of the agreement.
Flexible agreements, especially coworking agreements, are used generally for shorter lease terms and may have multiple short-term renewal options (in some cases automatic one-year renewals).

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Data center colocation is when a business leases space within a shared data center, with choices such as leasing rack space, cabinet or cage space, or even an entire room. Usually, the agreement includes physical security and a certain amount of power availability and internet connectivity guaranteed as well.
The contract should be written in clear, plain language thats easy to understand. This will help everyone know what they are agreeing to. Describe what things of value are being exchanged. Write clearly what one party is promising to deliver and what the other agrees to pay or do in exchange.

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