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

Jurisdiction

England and Wales

Publisher

Genie AI

Document Type

Service Agreement

Cost

Free to use

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