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Colocation Agreement for the United States

Colocation Agreement Template for United States

A Colocation Agreement is a legally binding contract used in the United States that establishes the terms and conditions under which a facility provider offers space, power, cooling, and related services for housing a customer's IT equipment. The agreement covers essential aspects such as service levels, security protocols, access rights, maintenance responsibilities, and fee structures, while ensuring compliance with federal and state-specific telecommunications and data protection regulations.

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Colocation Agreement

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What is a Colocation Agreement?

The Colocation Agreement serves as the foundational document for businesses seeking to house their IT infrastructure in professional data center facilities across the United States. This contract type is essential when organizations need secure, reliable space for their servers and networking equipment without the cost of building and maintaining their own data center. The agreement encompasses crucial elements including power allocation, cooling specifications, physical security measures, and service level commitments, while adhering to both federal and state-specific regulations governing data centers and telecommunications facilities.

What sections should be included in a Colocation Agreement?

1. Parties: Identification of the colocation facility provider and the customer

2. Background: Context of the agreement and brief description of the services

3. Definitions: Key terms used throughout the agreement

4. Services: Detailed description of colocation services provided

5. Term and Termination: Duration of agreement and termination conditions

6. Fees and Payment: Pricing, payment terms, and billing procedures

7. Access and Security: Facility access protocols and security measures

8. Service Levels: Performance standards and metrics

9. Insurance and Liability: Required insurance coverage and liability limitations

What sections are optional to include in a Colocation Agreement?

1. Additional Services: Optional services beyond basic colocation - used when offering managed services or additional support

2. Environmental Requirements: Specific power and cooling requirements - used for high-density computing environments

3. Compliance Requirements: Industry-specific compliance obligations - used when hosting regulated data (healthcare, financial, etc.)

4. Migration Services: Terms for equipment installation and removal - used when initial setup assistance is required

What schedules should be included in a Colocation Agreement?

1. Service Level Agreement: Detailed performance metrics and remedies

2. Pricing Schedule: Detailed breakdown of all charges and fees

3. Facility Rules and Procedures: Operational guidelines and protocols

4. Equipment Schedule: Inventory of customer equipment

5. Technical Specifications: Detailed facility specifications and capabilities

6. Emergency Procedures: Disaster recovery and business continuity protocols

7. Insurance Requirements: Detailed insurance coverage requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Document Type

Service Agreement

Cost

Free to use
Clauses

































Industries

Telecommunications Act 1996: Federal law governing telecommunications services and infrastructure, essential for colocation facility operations and interconnection requirements

FCC Regulations: Federal Communications Commission rules governing telecommunications equipment, spectrum usage, and facility operations

ADA Compliance: Americans with Disabilities Act requirements ensuring facility accessibility for persons with disabilities

HIPAA: Health Insurance Portability and Accountability Act requirements for protecting medical data if healthcare information is stored

SOX Compliance: Sarbanes-Oxley Act requirements for financial data security and handling if financial services data is involved

FERPA: Family Educational Rights and Privacy Act requirements if educational institution data is stored

State Data Breach Laws: Various state-specific requirements for notification and handling of data breaches

CCPA: California Consumer Privacy Act requirements if California residents' data is involved

PCI DSS: Payment Card Industry Data Security Standard requirements if payment card data is processed or stored

Commercial Property Laws: State-specific laws governing commercial property usage, leasing, and operations

Local Zoning Regulations: Municipal and local requirements for facility location and usage

Building and Safety Codes: Local and state regulations for building construction, maintenance, and safety standards

Environmental Regulations: Federal and state requirements for energy efficiency, environmental protection, and cooling system operations

Insurance Requirements: State-specific insurance regulations including property and liability coverage requirements

OSHA Regulations: Occupational Safety and Health Administration requirements for workplace safety and operational standards

Uniform Commercial Code: State-adopted UCC provisions governing commercial transactions and contracts

Emergency Preparedness Rules: Requirements for disaster recovery, business continuity, and emergency response procedures

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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