SITUATION

Cantor Fitzgerald operated a 400 kW footprint in a colocation facility where maintaining low-latency connectivity to financial exchanges was a critical operational requirement. As the contract approached renewal, the client sought to reduce run-rate costs while preserving flexibility for future capacity expansion. The negotiation took place in a market environment where colocation pricing had increased 15–25% year-over-year and available capacity was limited.

KEY CHALLENGES

• Preserve low-latency exchange connectivity at an existing facility
• Reduce run-rate costs despite upward market pricing pressure
• Secure additional capacity in a constrained facility
• Maintain flexibility for future growth without committing to near-term spend

RESULTS

Renewal Cost Optimization Benchmarked the existing contract against current market pricing and negotiated revised renewal terms, achieving a 14.8% reduction in the base rate ($46.62/kW) despite colocation pricing increasing 15–25% year-over-year.

Commercial Term Optimization Secured additional services at preferred pricing and negotiated $300,000 in waived installation fees, reducing near-term capital expenditures associated with the expansion.

Future Capacity Reservation Negotiated a structured growth option securing 100 kW of additional capacity with a January 2027 commencement, locking price and availability while avoiding any interim carrying costs.