Colocation Data Center

Colocation contains privately-owned servers and networking equipment in a third-party data center. Instead of the in-house plot where servers occupy a company’s in-house room, space is rented out. A colocation data center, or a third-party data center, is a place where servers can co-locate. 

A data center can also be another company’s data center. You can possess the hardware equipment, and the data center staff houses it for you. In a few cases, the staff also maintain the hardware. 

When you choose to store your equipment in a colocation data center, a company can choose its servers in multiple data centers instead of choosing one. A business that has vast geographic footprints and needs to keep their computer systems near every office they possess 

Sometimes establishing your own data centers might not be within the budget, even though you are moving at a rapid pace. It is better to understand the critical factors of a colocation data center, and you can perceive it is the better option for your business. 

What is the difference between Colocation vs Cloud Hosting? 

Colocation vs Cloud Hosting 

Colocation and Cloud hosting each has benefits. Both perform different functions, and they have different advantages and designed to meet distinct needs. The organization’s infrastructure and data management need to ultimately determine which solution is more suitable for your business. 

Similar to colocation, cloud-based infrastructure is cost-efficient since it also works as a shared facility. It is the connection you find between both services. With cloud services, a cloud provider will handle network elements, storage, and servers. 

Cloud service has enormous flexibility to scale data up or down depending on the requirements of the business. A provider can manage the address of essential changes, environment and control infrastructure resources without the actual presence. 

Cloud providers will control data for a business but have drawbacks when data expands. When your company grows, you need to pay more costs for storage. Because of this, many choose a colocation data center instead. 

When you use colocation data center services, you rent space for the assets you have. With cloud services, you rent the asset itself, and it is limited depending on the subscription you select.

Types of Colocation Facilities:

A data center colocation facility is divided into three types they are retail, wholesale and hybrid cloud. 

Retail Colocation: A customer rent spaces in a data center, generally a rack, space in a rack or a caged off area.

Wholesale Colocation: A tenant rents an entire built data center space, generally at a low-cost than a retail vendor, but with lower power and space requirements. 

Hybrid Cloud-Based Colocation:  This colocation is a combined of in house and outsourced data center services. 

Benefits of Data Center Colocation

Colocation provides an excellent performance environment for IT infrastructure. Colocation gives only and private connection choices to hundreds of networks, IT and Cloud service providers to streamline your architecture. 


Colocation data centers are built with the most significant specifications for layers of redundancy. It consists of excellent physical security, backup power generators, multiple network connections and more. 

Few technical staff 

You need not worry about things like managing power, running cables, installing equipment, any number of more technical processes. The collocation data center will even be able to restore components or carry out other tasks as needed. So, it means you do not need to have a vast IT staff employed to manage this work. 

Safe and Secure 

It is essential to have adequate security for colocation providers. Coresite data center colocation provides inclusive measures to meet requirements like 24/7 in-house security officers, mantrap entries, perimeter fencing, IP – DVR cameras, keycard scanners and biometric.

Improves Scalability 

As your business raise, you should need to add new equipment and servers to the facility. If your equipment is in a local data center or server closet, it would be not easy to expand. 

Lower Costs 

The colocation option costs far lower until and unless your equipment needs a vast amount of room. When you compare the costs of a colocation data center with the option of building your facility, it is a clear choice. 

Hybrid Cloud

Hybrid Cloud precisely connects to the Cloud of your choice within the colocation facility. You can experience performance benefits and cost-saving of cloud interconnection solutions from top providers like Microsoft, Amazon, Google, Alibaba Cloud, IBM and Oracle on-site. 

Some Colocation Features

Colocation services contain the building where everything is accommodated and physical security, redundant power, networking, and redundant cooling components, which then help the customer’s servers and storage.

Interconnection: Carrier-neutral colocation facilities offer a marketplace of networks, clouds and IT service providers that take part in your business. Leverage direct connections and obtain access to hundreds of businesses in data centers.

Higher bandwidth levels: Housing data hardware in a colocation data center provides companies access to higher bandwidth levels than a standard office server room at low cost.

Colo provides the bandwidth that enterprise client servers require to function correctly. Using large pipes of bandwidth to power many companies, data center colocations are primed to help businesses in a way their office location probably cannot.

Risk Management: Businesses that use data centers as a data recovery strategy to reduce the risk in an external event (for example, a natural disaster) or outage. Using a colocation facility make absolute business continuity in the event of a major disaster. It means that if your business location loses the ability, your 


Colocation services help small and large businesses decrease large capital investments and maintain efficiency, profitability, and high security. Essential benefits of colocation services can expand your business without disturbing facility leasing or construction prices. Colocation provides excellent performance for IT infrastructure. 

Colocation is highly beneficial. It offers organizations a source to remain in control of their equipment; it increases security and scalability and reduces maintenance costs.