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Colocation Services Addendum

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COLOCATION SERVICES ADDENDUM

THIS COLOCATION SERVICES ADDENDUM (the Agreement) is entered into as of the Effective Date set forth below by and between:

WHEREAS

WHEREAS, Client Name: is party to a Master Services Agreement or other agreement with Provider Name: concerning certain IT services; and

WHEREAS, Provider operates a colocation facility located at Service Location: and has agreed to provide colocation space, power, connectivity and related services to Client on the terms set forth herein; and

WHEREAS, the parties desire to set forth the scope, payment, term and other specific provisions governing the colocation services to be provided by Provider to Client.

SCOPE OF WORK

Provider shall provide colocation services as specified below. The scope includes allocation of rack or cabinet space, power provisioning, network cross-connects, physical access, and on-site remote-hands as set forth in this Addendum and any service order attached hereto.

PAYMENT TERMS

Late payments shall accrue interest at the rate of on the outstanding balance, compounded monthly, or the maximum rate permitted by applicable law, whichever is less. Client shall also be responsible for reasonable costs of collection, including attorneys' fees.

TERM AND TERMINATION

Term Start Date: Term End Date:

This Addendum shall continue in effect for the Term specified above and shall automatically renew for successive one-year periods unless either party provides written notice of non-renewal at least days prior to the then-current term expiration.

Either party may terminate this Addendum for material breach by the other party if such breach remains uncured thirty (30) days after delivery of written notice specifying the nature of the breach. Termination shall not relieve Client of its obligation to pay fees accrued through the effective date of termination, including charges for removal of Client equipment.

CONFIDENTIALITY

For purposes of this Addendum, "Confidential Information" means all non-public information disclosed by one party to the other, whether orally, in writing or by inspection, that is designated as confidential or that reasonably should be understood to be confidential given the nature of the information and the circumstances of disclosure. Confidential Information includes, without limitation, technical data, pricing, network diagrams, security procedures and customer data.

The receiving party shall (a) protect Confidential Information with at least the same degree of care it uses to protect its own confidential information but no less than a reasonable degree of care; (b) not use Confidential Information except for performance of its obligations under this Addendum; and (c) not disclose Confidential Information to any third party except to affiliates, employees, contractors or professional advisors who have a need to know and who are bound by confidentiality obligations at least as protective as those set forth herein. The foregoing obligations do not apply to information that: (i) is or becomes publicly available through no breach of this Addendum; (ii) is rightfully received from a third party without restriction; (iii) was known to the receiving party prior to disclosure; or (iv) is independently developed by the receiving party without use of the disclosing party's Confidential Information.

ACCESS, SECURITY AND MAINTENANCE

Provider will maintain reasonable physical and environmental protections at the Facility and will permit Client reasonable access to Client's equipment during normal business hours subject to Provider's access procedures. Client shall be responsible for securing its own data and systems, and Provider shall have no obligation to retain Client data except as expressly agreed in writing. Scheduled maintenance windows shall be communicated to Client in advance and Provider will use commercially reasonable efforts to minimize service interruptions.

LIMITATION OF LIABILITY & INSURANCE

Except for liability arising from gross negligence, willful misconduct or breaches of confidentiality, neither party shall be liable for indirect, incidental, consequential, special or punitive damages. Provider's aggregate liability for direct damages arising out of or related to this Addendum shall not exceed the total fees paid by Client under this Addendum in the twelve (12) months preceding the claim. Each party shall maintain insurance appropriate to its operations, including commercial general liability and property insurance covering its own equipment.

GOVERNING LAW

This Addendum shall be governed by and construed in accordance with the laws of the State of without regard to its conflict of laws principles.

ENTIRE AGREEMENT

This Addendum, together with any referenced service orders and the parties' underlying Master Services Agreement (if any), constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous agreements, representations and understandings, whether written or oral, relating to such subject matter. No amendment shall be binding unless executed in writing by authorized representatives of both parties.

NOTICES

Client

Client Name:

By:

Date:

Provider

Provider Name:

By:

Date:

Enter text✕

What the Colocation Services Addendum Is

A Colocation Services Addendum is a legally binding amendment to an existing colocation or data center services agreement that records specific changes or additional terms — for example, equipment moves, power capacity adjustments, space reallocations, service-level updates, access rules, or pricing changes. It integrates with the master colocation contract, references the original agreement date, and clarifies how the amendment affects billing, liability, and termination. Parties commonly attach technical exhibits, rack diagrams, and acceptance criteria to ensure operational and billing alignment.

Why a Clear Addendum Matters

A precise Colocation Services Addendum reduces ambiguity about responsibilities, billing, and technical requirements, minimizing disputes and operational downtime. It documents agreed changes, preserves the continuity of the master agreement, and creates a clear audit trail for accounting, compliance, and future audits.

Why a Clear Addendum Matters

Who Typically Prepares and Signs This Addendum

The document is used by parties responsible for facilities, IT operations, contract management, and procurement who must formalize changes to colocation services.

  • Data center operators and account managers who must record rack, power, or connectivity changes and maintain service records.
  • Enterprise IT and infrastructure teams that request capacity changes, relocations, or new service levels and need formal acceptance.
  • Legal and procurement professionals who review commercial terms, liability allocations, and billing adjustments before execution.

Ensure the signatories have authority to bind their organizations and that technical exhibits are attached to avoid later disputes.

Step-by-step: Completing the Addendum

Follow these sequential steps to prepare, review, and execute a Colocation Services Addendum correctly.

  • 01
    Identify the change: State the specific modification (e.g., additional cabinet, increased power, new cross-connect).
  • 02
    Reference master agreement: Cite master contract title, date, and reference section to link the addendum.
  • 03
    Attach technical exhibits: Include rack diagrams, power schedules, IP addressing, and acceptance criteria.
  • 04
    Obtain authorized signatures: Have authorized reps sign, date, and include printed names and titles.

How to Configure an Online Completion Workflow

Set up a digital workflow that routes the addendum for review, technical approval, and signature to reduce manual handoffs.

Field Configuration
Document Upload Upload PDF/X or DOCX and attach exhibits as separate files
Signer Order Define sequential or parallel signing roles (legal, ops, finance)
Authentication Use email link plus optional SMS or KBA for higher assurance
Audit Trail Enable full event logging (timestamps, IP, action history)

Technical Considerations for eSigning and Integration

Choose a platform that supports your compliance needs, preserves exhibits, and integrates with procurement or ticketing systems.

  • File formats: PDF and DOCX support
  • Integrations: CRM, ERP, cloud storage
  • Authentication: Email, SMS, enterprise SSO

Ensure the chosen platform stores a tamper-evident copy and audit trail and that it can export signed bundles for your records management system.

Typical Electronic Execution Flow

This outlines a common e-signature process for a colocation addendum when using an electronic signing platform.

  • Prepare document: Upload addendum and attach technical exhibits.
  • Place fields: Add signature, date, and initial fields and any conditional fields.
  • Route to signers: Specify signer emails and signing order or generate a secure link.
  • Complete and archive: Signed package and audit trail saved, distributed to stakeholders.

Timing, Deadlines, and Processing Expectations

Track effective dates, billing cutoffs, and any notice periods to align operational changes and invoicing with contract terms.

Effective Date:

Use the specified MM/DD/YYYY in the addendum to govern start of changes.

Billing Proration:

Define whether fees are prorated and the billing cycle affected.

Notice Periods:

Respect any required advance notices in the master agreement.

Implementation Window:

Specify operations lead time for rack moves or power changes.

Retention of Signed Copy:

Store executed addendum with exhibits for audit and dispute resolution.

Common Preparation Errors to Avoid

  • Failing to attach updated technical exhibits or rack diagrams, causing scope disputes during implementation.
  • Using inconsistent party names or omitting the master agreement reference, which can create enforceability questions.
  • Leaving pricing or billing mechanics vague, producing unexpected charges or invoicing disputes.
  • Not confirming signer authority, which can result in a voidable or contested amendment.

Consequences of an Incorrect or Incomplete Addendum

Billing Disputes: Delayed payments and credits due to unclear fee language
Operational Delays: Implementation postponed for missing technical details
Contractual Ambiguity: Potential litigation or arbitration over scope
Regulatory Risk: Compliance exposures if customer data handling changes
Invalid Execution: Signatures challenged if signer lacked authority
Retention Violations: Failure to preserve records per regulatory timelines

eSignature Vendor Comparison for Executing Addenda

Common eSignature options vary by starting price, trial availability, bulk features, audit capabilities, and HIPAA support. signNow is listed first per comparison conventions.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Verify with vendor Verify with vendor Verify with vendor Verify with vendor
Bulk Send Yes (Business Premium) Yes Yes Yes Varies by plan
Audit Trail Yes Yes Yes Yes Yes
Envelope Cap No envelope cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Real-world Use Examples

Two representative scenarios show how organizations use a Colocation Services Addendum to manage changes while keeping compliance and operations aligned.

Data Center Capacity Increase

A midmarket SaaS provider needed three additional cabinets and higher power per rack

  • The addendum specified kW per rack and a prorated fee
  • The signed addendum plus rack diagram prevented billing disputes and guided the data center technician during implementation.

Cross-Connect and IP Allocation

An enterprise required multiple new cross-connects and updated BGP peering details

  • The addendum attached a network exhibit and acceptance test plan
  • Clear acceptance criteria reduced provisioning time and avoided recurring network configuration disagreements.

Frequently Asked Questions

Answers to common legal, operational, and electronic signing questions about Colocation Services Addenda.


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