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// Own vs Rent — AI & GPU Workloads

Colocation vs AWS
for AI & GPUs.

Cloud GPU instances bill by the hour, for as long as you use them. If your GPUs run close to 24/7, owning them and colocating usually costs far less per month — you pay a flat fee for power, cooling, space and bandwidth (from $200/kW here, up to 17.3kW per rack) plus a one-time hardware purchase. Use the calculator below with your own numbers.

Cloud: 8 GPUs, 24/7
$17,520/mo
Example: $3.00 per GPU-hour × 730 hrs
→
Colocation: same 8 GPUs (10kW)
$2,000/mo
$200/kW all-in, you own the servers
→
Payback on a $250k server
~16 months
Illustrative — your rate and hardware price will differ

Own GPUs in Colocation vs. Rent GPUs in Cloud

Cloud has real advantages — flexibility above all. For steady, high-utilization AI workloads the cost structure favors ownership.

What You're Comparing Own GPUs + Colocation
Columbia Colocation
AWS / Azure / GCP
Cloud GPU instances
Cost modelHardware purchase + flat monthly hosting (from $200/kW)Hourly rental, no upfront cost
Cost at 24/7 utilizationFlat — falls to hosting cost after paybackFull hourly rate every hour, indefinitely
Bursty or short jobsHardware sits idle between jobsPay only while running
Data egressNo per-GB fees; 50 Mbps per kW includedTypically ~$0.09/GB to the internet
Hardware choiceAny GPU server that fits the rack power and coolingLimited to instance types offered
Root / hardware accessFull — BIOS, BMC, networking, storageVirtualized; limited below the OS
Rack powerUp to 17.3kW per rack, 208V 3-phase, air-cooledManaged by the provider
SupportDirect line to the owner, Quincy, WATicket queue by support plan
CommitmentFlexible terms, $0 setupOn-demand, or reserved/savings plans for discounts

⚠️ Egress Adds Up With Large Models and Datasets

AWS typically charges around $0.09 per GB for data leaving its network. Moving 10TB a month out costs roughly $900 in egress alone. Columbia Colocation does not bill per GB: AI and GPU deployments include 50 Mbps per kW (about 16 TB/month per kW) on a 1 Gbps connection.

Own vs Rent Calculator

Starting values are examples, not quotes — replace them with your cloud rate and your hardware price.

// Your deployment

Whole-server draw divided by GPU count. An 8-GPU H100-class server is about 10kW, or 1.25kW per GPU.

// Result

Cloud rental / month–
Colocation at $200/kW / month–
Power reserved–
Monthly difference–
Hardware payback–
3-year cost: cloud–
3-year cost: own + colo–
Illustration only. Excludes your staff time, spares, networking gear, taxes and hardware resale value. Hosting rate uses the $200/kW price on a 12-month term. Utilization scales the cloud bill only, since colocation is a flat monthly fee.

When Colocation Wins. When Cloud Wins.

✓ Choose Colocation When...

  • Your GPUs run near-continuously (inference serving, long training runs)
  • Your workload is steady and predictable
  • You can buy or finance the servers
  • Egress fees from large datasets or model artifacts hurt
  • You want to choose your own GPUs, networking and storage
  • You want a flat, predictable monthly bill

✗ Cloud Still Wins When...

  • Demand is bursty or you only need GPUs for short experiments
  • You cannot or do not want to make a hardware purchase
  • You need the newest GPU generation immediately
  • You rely on managed ML platforms and services
  • You need multi-region failover with a formal SLA

Colocation vs Cloud FAQ

Is colocation cheaper than AWS for GPU workloads?

For GPUs that run close to 24/7, usually yes. Cloud GPU instances bill hourly for as long as you use them, while colocated servers you own cost a flat monthly fee for power, cooling, space and bandwidth (from $200 per kW at Columbia Colocation) after the upfront hardware purchase. The more continuously you run, the faster ownership wins. For short or bursty jobs, cloud is usually cheaper.

How long does it take to pay back buying GPUs and colocating?

It depends on hardware price and the cloud rate you would otherwise pay. As an illustration, 8 GPUs rented at $3.00 per GPU-hour around the clock cost about $17,520 per month. The same 8 GPUs in a 10kW colocation footprint cost about $2,000 per month to host at $200 per kW. If the server costs $250,000, the monthly difference of roughly $15,520 pays it back in about 16 months. Use the calculator with your own numbers.

What about AWS data egress fees?

AWS typically charges around $0.09 per GB for data leaving its network to the internet, which adds up for large datasets and model artifacts. Columbia Colocation does not bill per GB: AI and GPU deployments include 50 Mbps per kW, billed on 95th-percentile usage, with $2 per Mbps overage.

When is cloud the better choice?

When demand is bursty or unpredictable, when jobs are short-lived, when you cannot or do not want to buy hardware, or when you depend on managed services such as hosted training platforms or multi-region failover.

Do you rent GPUs or servers?

No. Columbia Colocation hosts customer-owned hardware only. You buy or lease the servers; we provide up to 17.3kW per air-cooled rack on 208V 3-phase power, plus bandwidth, in Quincy, Washington.

See AI & GPU colocation specs and pricing, full pricing and the colocation pricing guide.

Ready to Cut Your Cloud Bill?

Tell us what you're running on AWS and we'll show you what it would cost here. No sales pressure — just numbers.

✓ Got it — we'll be in touch shortly!
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