NRC (Non-Recurring Charge)

A non-recurring charge (NRC) is a one-time fee billed at the start of a colocation or interconnection contract to cover setup work — cross-connect installation, cage or cabinet build-out, cabling, power circuit termination and initial provisioning — as distinct from the monthly recurring charge (MRC) that covers ongoing space, power and services. NRCs for a single cross-connect typically run a few hundred dollars, while a custom cage build with dedicated power whips can run into tens of thousands, and providers sometimes waive NRCs entirely on multi-year contracts to win competitive deals. Because NRCs are booked once and MRCs recur for the life of the lease, colocation providers and REITs track the ratio between the two carefully: heavy reliance on NRC revenue can flatter a single quarter's numbers without reflecting the health of the underlying recurring, contracted revenue base.