Colocation is a data center service that allows organizations to lease space for their physical servers, networking equipment, and storage systems in a secure, third-party facility. Instead of managing on-premise infrastructure, businesses place their hardware in a colocation provider’s data center, gaining access to enterprise-grade power, cooling, connectivity, and physical security.
In simple terms, colocation provides the infrastructure—your business keeps the control. It’s ideal for companies that want the reliability of a data center without the cost of building and maintaining one.
We often see IT leaders use colocation to support hybrid cloud strategies, disaster recovery, and compliance needs. It bridges the gap between on-premise control and the flexibility of cloud computing, offering consistent uptime, predictable costs, and scalable growth options.
Key advantages include:
- Reliability: Access redundant power, cooling, and network systems.
- Security: Protect assets in facilities with 24/7 monitoring and physical safeguards.
- Scalability: Expand capacity without new construction.
- Cost Efficiency: Lower capital expenses while maintaining control of assets.
Our take? Colocation delivers the best of both worlds—enterprise infrastructure reliability with your own hardware flexibility.
Want the full breakdown? Explore our Colocation Guide to see how businesses extend IT capacity and resilience without new builds. For deeper insight, read our blogs Cheap Colocation Services: What to Watch For and Colocation Costs: What Healthcare IT Should Know to learn what truly drives pricing and performance. You can also listen to Most Companies Get This Wrong: How to Pick the Right Data Center or review our report Colocation & Cloud Redefining IT in 2024 for a strategic look at where the industry is headed.
