Colocation Agreement for the United Kingdom

Colocation Agreement Template for England and Wales

A Colocation Agreement is a legally binding contract under English and Welsh law that establishes the terms and conditions under which a service provider offers dedicated space, power, cooling, and related services within their data center facility to house a customer's IT equipment. The agreement covers crucial aspects such as service levels, security arrangements, access rights, maintenance responsibilities, and liability provisions, while ensuring compliance with UK data protection and telecommunications regulations.

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What is a Colocation Agreement?

A Colocation Agreement is essential when a business needs to house its IT infrastructure in a third-party data center facility rather than maintaining its own. This contract, governed by English and Welsh law, defines the relationship between the colocation provider and the customer, covering critical aspects such as space allocation, power provision, cooling services, security measures, and access protocols. The agreement ensures both parties understand their rights and obligations while maintaining compliance with relevant UK regulations including data protection, telecommunications, and environmental standards. It's particularly important for businesses seeking reliable, secure, and professionally managed infrastructure without the capital expense of building their own facility.

What sections should be included in a Colocation Agreement?

1. Parties: Identification of the colocation provider and customer, including registered addresses and company numbers

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

3. Definitions: Key terms used throughout the agreement including technical specifications and service-related terminology

4. Services: Detailed description of colocation services, including space, power, cooling, and basic support services

5. Service Levels: Performance standards, availability guarantees, and response times

6. Customer Obligations: Requirements for equipment standards, access procedures, and compliance with facility rules

7. Charges and Payment: Pricing, payment terms, and billing procedures

8. Term and Termination: Duration of agreement, renewal terms, and termination provisions

9. Liability and Indemnities: Limitation of liability, indemnification obligations, and insurance requirements

What sections are optional to include in a Colocation Agreement?

1. Migration Services: Terms for initial equipment installation and migration services when customer requires assistance with initial setup

2. Remote Hands Services: Terms for on-site technical support services when provider offers additional technical support

3. Cross-Connect Services: Terms for interconnection services with other customers or carriers when such connections are required

4. Disaster Recovery: Additional provisions for backup and recovery services when disaster recovery services are included

What schedules should be included in a Colocation Agreement?

1. Service Description Schedule: Detailed technical specifications of space, power, and cooling provisions

2. Service Level Agreement Schedule: Detailed metrics, measurements, and remedies for service levels

3. Pricing Schedule: Detailed breakdown of all charges and pricing terms

4. Facility Rules and Procedures: Operational procedures, access protocols, and security requirements

5. Technical Requirements Schedule: Equipment standards and technical compliance requirements

6. Acceptable Use Policy: Rules governing use of facilities and services

7. Insurance Requirements Schedule: Detailed insurance coverage requirements for both parties

Authors

Alex Denne

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

Jurisdiction

England and Wales

Publisher

Genie AI

Document Type

Service Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Industries

UK GDPR and Data Protection Act 2018: Core data protection legislation governing the processing, storage and transfer of personal data in UK data centers

Privacy and Electronic Communications Regulations (PECR): Specific rules for electronic communications, complementing general data protection laws

Building Regulations 2010: Standards for construction, modification and maintenance of buildings including data centers

Health and Safety at Work Act 1974: Fundamental workplace safety legislation ensuring safe working conditions in the facility

Regulatory Reform (Fire Safety) Order 2005: Fire safety requirements for commercial premises including data centers

Climate Change Act 2008: Framework for reducing carbon emissions, affecting data center operations and efficiency requirements

Energy Savings Opportunity Scheme Regulations 2014: Energy efficiency assessment and reporting requirements for large organizations

Environmental Protection Act 1990: Controls on environmental impact including waste management and pollution

Common Law Contract Principles: Fundamental principles of contract formation and enforcement under English law

Unfair Contract Terms Act 1977: Regulations on contractual terms that can be considered unfair or unreasonable

Communications Act 2003: Regulatory framework for telecommunications and network infrastructure

Electronic Communications Code: Rights and obligations regarding electronic communications equipment and infrastructure

Telecommunications Infrastructure Act 2021: Access rights and infrastructure deployment in leasehold properties

Electricity Act 1989: Framework for electricity supply and distribution affecting power provision to facilities

Network and Information Systems Regulations 2018: Cybersecurity requirements for critical infrastructure and digital service providers

Computer Misuse Act 1990: Criminal offenses relating to unauthorized access to computer systems

Landlord and Tenant Act 1954: Rights and obligations in commercial property leases, if applicable to the colocation arrangement

Insurance Act 2015: Requirements for insurance contracts and disclosure obligations

ISO/IEC 27001: International standard for information security management systems

PCI DSS: Payment Card Industry Data Security Standard for protecting payment card data

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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