But when you are Colocating you have higher upfront costs as you need to acquire hardware and also need to have somebody nearby the datacenter for hardware swaps in case of a failure, no?
Refurb servers will still blast AWS, and spares are easy to source.
I know HE.net does a rack for like $500/mo intro price and that comes with a 1G internet feed as well.
most datacenters do offer remote hands which is a bit pricey, but since they're only needed in emergencies in a redundant setup it is just not required.