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Committed, metered, and burstable power describe different parts of a colocation electricity contract, not three universal, mutually exclusive plans. A commitment reserves capacity and can create a fixed charge even when your equipment draws less. Metered billing charges for measured use—usually energy in kilowatt-hours (kWh)—but may sit alongside a capacity fee. Burstable power permits temporary draw above a reserved level only under the limits, pricing, and enforcement rules in your agreement.
To compare quotes correctly, separate capacity (the power rate the facility makes available, commonly kW or kVA) from energy (what equipment consumes over time, commonly kWh). Then verify the meter, interval, rounding, burst ceiling, overage price, electrical limits, and consequences of exceeding them. The words alone do not tell you what an invoice will cost.
What committed, metered, and burstable power mean
Colocation providers combine these terms in different ways. One quote can include a reserved-capacity fee plus metered energy; another can use a fixed recurring charge; a third can allow bursts above a contracted level. Treat each label as a starting point and read the service order and governing agreement for the actual rules.
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Committed or reserved capacity
A committed-power arrangement reserves a specified amount of capacity for your deployment, often stated as kilowatts (kW) or kilovolt-amperes (kVA). You agree to pay for that reservation for the billing period or contract term. Ark describes a fixed monthly fee per reserved kW regardless of actual consumption. An SEC-filed colocation agreement illustrates a take-or-pay structure in which the fee is payable on contracted IT load even when utilization or draw is lower.
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This model gives the facility a predictable planning commitment and gives you a known recurring capacity cost. Its trade-off is that unused reservation does not automatically disappear from the invoice. Whether energy is included, billed separately, or subject to an allowance is a contract question.
Metered usage
Metered billing uses a provider-designated measurement of your actual use. Energy is commonly billed in kWh, while some contracts also measure demand or capacity. Ark’s flexible-commit description bills actual power usage in kWh in addition to a fixed fee for reserved capacity. Spectrum’s colocation addendum presents a choice between a fixed recurring charge and metered billing based on actual use.
Therefore, “metered” does not mean “no capacity fee.” Before signing, identify the meter that controls the invoice, its sampling or averaging interval, the billing period, the rate, rounding rules, minimum charges, and how you can obtain readings. A short high-load event may be treated differently from a sustained average depending on those definitions.
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Burstable power allows draw above a reserved level for at least some circumstances. The label does not reveal the permitted peak, how long a burst may last, how often it may occur, whether extra capacity is guaranteed, or what it costs. Ark says customers can burst “as needed” while expressly noting that restrictions apply; that statement describes Ark’s offering, not an industry-wide rule.
Ask the provider to put the burst ceiling, duration, frequency, measurement method, overage formula, and enforcement response in the order form. A burst may be accepted, billed at a premium, throttled, or treated as a contract breach once a stated limit is crossed. Do not infer any of those outcomes from the word burstable.
Power bursting is also different from 95th-percentile burstable network bandwidth. Bandwidth bursting measures traffic rate; it does not establish an electrical-power billing method.
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Side-by-side comparison
| Model or term | What is reserved or measured | Typical invoice effect described by the sources | What the contract must clarify |
|---|---|---|---|
| Committed/reserved capacity | A contracted capacity level, commonly kW or kVA | Fixed recurring charge can apply even when actual draw is lower; a take-or-pay agreement charges on contracted IT load | Minimum commitment, term, included energy, and treatment of unused capacity |
| Metered usage | Measured consumption, commonly kWh; some contracts also measure demand | Actual-use charge; a fixed capacity fee may still apply | Authoritative meter, interval, rate, rounding, minimums, access to readings, and pass-throughs |
| Burstable power | Temporary draw above a reserved level | May be allowed under restrictions; extra billing or other remedies depend on the agreement | Peak ceiling, duration, frequency, guarantee status, overage price, and consequences of exceeding limits |
Capacity, demand, and energy are different quantities
Capacity is a rate
Capacity describes how much electrical power the facility makes available at a point in time. Quotes may express it as kW or kVA and may call it reserved IT load, circuit capacity, or a draw limit. Those labels are not automatically interchangeable. Confirm whether the number is usable customer capacity, a circuit rating, a reserved allocation, or a contractual ceiling.
Energy is power used over time
Energy is commonly billed in kWh. A kWh figure accumulates consumption over the billing period; it is not the same thing as the maximum rate your rack can draw. A quote can charge both for reserving a capacity level and for the energy consumed through that reservation.
Why kW and kVA do not match automatically
Equinix documentation defines its contractual Draw Cap in kVA and explains that kW and kVA differ according to power factor. The relationship depends on the electrical characteristics of the load, so translating a server specification in kW into available kVA requires the facility’s stated power-factor treatment. Circuit ratings and allowable draw also vary by region. Request the provider’s conversion rule rather than applying a generic assumption.
Redundant circuits can change usable capacity
Facilities often deliver power through redundant circuit pairs. Equinix explains that usable power is determined within that redundant design; you cannot assume that adding the nominal ratings of both circuits produces the amount your equipment may safely or contractually draw. The facility design and your service order control the usable figure.
How a colocation power invoice can be assembled
Read the invoice as several possible components instead of searching for one universal “power rate.” The following components may appear in different combinations:
- Reserved-capacity fee: a recurring amount tied to contracted kW or kVA, potentially payable even when measured use is low.
- Energy charge: a rate applied to measured kWh under the provider’s meter and interval rules.
- Demand or excess charge: a fee tied to a measured peak or a draw above the contracted level, if the agreement defines one.
- Burst or overage charge: a price or formula for permitted excess draw.
- Utility and regulatory adjustments: pass-throughs, escalation provisions, taxes, or other exclusions listed in the quote or governing terms.
The reviewed sources did not establish a universal tariff or published price. Exact rates, allowances, limits, and adjustments must come from the current facility quote, order form, and governing agreement.
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How to compare two colocation quotes
Put both offers on the same axes before comparing totals. A low-looking kWh rate may be paired with a large capacity commitment, while a flexible option may cost more per measured unit but reduce payment for idle capacity.
1. Identify the capacity commitment
Record the contracted IT load or reserved kW/kVA, the minimum commitment, the contract term, and any expansion or reduction rights. Ask whether the recurring fee remains payable when actual consumption is below the reservation and whether unused capacity can be reassigned within your deployment.
2. Define the meter and measurement method
Ask which device is authoritative, whether the invoice uses kW demand, kWh energy, or both, and the sampling or averaging interval. Confirm the billing period, rounding direction, minimum charge, time-zone treatment, and how you receive raw or summarized readings. If the provider can revise a reading, require the correction process and notice period.
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Specify the maximum allowable draw above commitment, the permitted duration and frequency, and whether the provider guarantees that headroom. Obtain the overage formula, rate, and measurement window. Clarify whether repeated bursts trigger a higher commitment, throttling, an incident fee, or a contractual default.
4. Separate energy and adjustment clauses
List any included energy allowance, the separate energy rate, utility or regulatory pass-throughs, escalation provisions, taxes, and exclusions. A fixed capacity fee and a metered energy fee should be shown as separate line items so that a change in workload can be modeled.
5. Check electrical and geographic constraints
Confirm voltage, phase, receptacle type, circuit and fuse rating, redundancy design, and power-factor treatment for the exact facility and region. Equinix notes that circuit ratings and allowable draw vary by region, so a number from one site should not be generalized to another.
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6. Test the offer against your load profile
Estimate average draw, normal peaks, startup or seasonal spikes, growth, and workload variability. Compare the cost of reserving headroom that may sit idle with the cost and risk of bursting. Model at least a low-use month, an expected month, and a sustained-peak month using the contract’s actual formulas.
Questions to ask specifically about burstable power
What is the ceiling?
Is the limit expressed in kW, kVA, amps, or another measure? Does it apply per rack, per circuit, or across the whole deployment? Equinix’s documentation, for example, describes a Draw Cap across all circuits in a single deployment and defines it in kVA; another provider may define the boundary differently.
How long can a burst last?
“Temporary” is not a billing definition. Require a duration, reset condition, and frequency limit. A five-minute allowance and an allowance that can continue for a billing interval have very different operational value.
Is burst capacity guaranteed?
Some contracts make excess capacity available only when facility headroom exists. Ask whether the provider must deliver it, may refuse it during an event, or can revoke the option after repeated use. If your workload cannot tolerate denial, treat burst capacity as convenience rather than guaranteed design capacity.
What happens after an excess event?
Find out whether the provider sends an alert, applies an automatic overage charge, requires a capacity upgrade, limits the load, or treats the event as a service-level or contract violation. Ask how quickly you must respond and whether the provider can disconnect equipment for safety reasons.
Worked examples for interpreting a quote
These examples are illustrations of contract mechanics, not provider prices.
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Committed capacity with low utilization
A customer reserves a fixed capacity level for a year but operates well below it most months. Under a take-or-pay clause, the capacity fee remains due because it is tied to the contracted IT load, while any separately metered energy charge reflects the lower consumption. The customer buys predictability and guaranteed planning capacity but pays for idle reservation.
Metered usage with a capacity fee
A flexible-commit order charges a fixed amount for reserved capacity and adds a kWh charge based on actual monthly readings. During a quiet month, the energy line falls while the capacity line does not. Calling this arrangement simply “metered” would hide the fixed component.
Burst above commitment
A workload normally stays within its reservation but briefly exceeds it during a processing run. If the order allows bursts, the provider may accept the event under a stated ceiling and duration, then bill the defined overage. If the run exceeds the ceiling or lasts too long, the contract’s remedy—not the marketing label—determines whether the result is a surcharge, upgrade requirement, throttling, or breach.
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A metered rack power distribution unit (PDU) can record cabinet draw and help you size a reservation or understand a load profile. QuickHost describes monitoring and recording draw through rack PDUs. That reading is a planning aid unless the provider explicitly makes the device or its data authoritative for billing.
Facility rules may require approved strips or equipment. Spectrum’s addendum says power strips with additional functionality must be approved in advance. Before installing a monitoring PDU, obtain written approval and verify voltage, receptacle type, phase, amperage, connector compatibility, and redundancy. A customer-owned meter cannot override the provider’s contractual meter or the facility’s electrical limits.
Common mistakes and how to avoid them
- Comparing kWh to a monthly kW fee: convert both offers into a modeled monthly bill using the same load profile and include all fixed charges.
- Assuming metered means pay-only-for-use: check for reserved-capacity fees, minimums, and take-or-pay language.
- Treating burstable as unlimited: obtain a numeric ceiling, duration, frequency, price, and remedy.
- Adding redundant circuit ratings: use the facility’s stated usable capacity and draw-limit calculation.
- Using kW and kVA interchangeably: ask how power factor is handled for your equipment and region.
- Relying on a personal PDU as the invoice meter: confirm which device controls billing and secure approval for any installed monitoring hardware.
- Ignoring pass-throughs and escalation: read utility, regulatory, tax, and adjustment clauses before comparing headline rates.
Documents and answers to obtain before signing
Request the current quote, service order, electrical schedule, applicable colocation terms, and any addenda. Have the provider answer these points in writing:
- What capacity is reserved, in which unit, and at what boundary?
- Is the capacity charge payable when actual draw is lower?
- What meter and interval determine kWh or demand charges?
- What readings can the customer access, and how are corrections handled?
- What energy, taxes, utility adjustments, escalation, and minimums apply?
- What exactly is the burst ceiling, duration, frequency, guarantee status, and overage price?
- What happens when the ceiling or duration is exceeded?
- How do voltage, phase, power factor, redundancy, and regional circuit limits affect usable capacity?
- Which customer-owned PDUs, strips, or monitoring devices are approved?
The practical decision is not whether one label sounds cheapest. Choose the structure whose capacity commitment, metering method, burst rights, and enforcement rules match your measured load profile and tolerance for unused reservation or unexpected overage.
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