COLOCATION

Colocation (often shortened to colo) is a hosting model where you own the server hardware and the provider rents you secure rack space, power, cooling, physical security and network connectivity inside a professional data centre. You retain full control of the operating system, configuration and upgrade cycle; the provider supplies the building. Colocation is the default for enterprises and infrastructure teams with specific hardware requirements, large fleets, or compliance constraints. Pricing is typically per U (rack unit), per cabinet, or per cage, bundled with a kW power allowance. Equinix and Digital Realty lead the global market.

How it works

You buy the server, ship it to the data centre, and the colo provider racks it, powers it, cools it, and connects it to their network. You retain ownership and full administrative control; the provider supplies "remote hands" for physical work like reboots or hardware swaps.

Why it matters

Colocation is right when you need full hardware control, predictable per-unit costs at large scale, specific cross-connects to cloud or partner networks, or compliance constraints that prefer hardware ownership. It is overkill for small footprints, where dedicated hosting is simpler.

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Frequently Asked Questions