Colo is actually cheaper than renting???

All over the forum I hear that colo hosting is much more expensive than renting dedicated servers and I can’t see why.

Hardware example I can buy off Ebay for $2050

AMD EPYC 7402+Supermicro H11SSL-i motherboard $999

CSE-813MFTQC-350CB2 Chasis – $400

128GB DDR4 2666MHz – $450

2x 1TB NVMe $200


Example colo host Psychz, Chicago (first cheap one I could find in colo section):

Full Locking Cabinet

42RU Rack Space Colocation

30A / 208V Power Circuit (4kW Usable Power)

What’s Included:


• /26 Private VLAN (61 Usable IPs)

• 40Gbps DDoS-Shield™ On-Premise Mitigation

• Anti-DDoS Monitoring Panel

• On-Demand KVMoIP

• 24/7 On-Site Support Staff



Its my understanding that I could run about 20 of the above configs at full power with that colo hosting offer. If I add 4 remote hand hours a month at $50 that would be $1599p/m, $19,188p/y.

Total approx. expenses after year 1 (colo + 20x servers with 5x spare parts) $69,188 (missing some small cost things like cabling, rails, PSU, switch if not incl) comes to $288 per month/server.

$288 seems like a reasonable price to me for those specs. OVH offers that same config for more but with 2x PSU.

Second years expenses would only be $75 per month (not including hardware replacement) and then you would have the option of selling the hardware for tens of thousands of dollars still. What am I missing when people say colo is more expensive?

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