
A colocation centre is essentially a shared space where multiple companies can house their servers and other equipment, often with 24/7 on-site technical support.
You can expect to find a range of features and options in a colocation centre, including different types of server cabinets and racks.
Some centres may also offer private suites or cages for added security and customization.
These suites can be a good choice for larger organizations or those with high-security needs.
What is a Colocation Centre?
A colocation centre is a facility that provides space, power, cooling, and bandwidth for organizations to house their servers and other IT equipment.
These centres typically have a range of benefits for businesses, including improved reliability, increased security, and reduced costs.
They offer a range of services, including 24/7 on-site staff, backup power systems, and network connectivity.
This allows businesses to focus on their core operations, rather than managing their IT infrastructure.
Colocation centres are often located in secure, climate-controlled facilities with multiple layers of security, including biometric authentication and CCTV cameras.
They typically have a range of different types of space available, including dedicated cabinets and private suites.
This allows businesses to choose the level of service and support that best meets their needs.
Colocation centres often have a range of different network providers, including major carriers and internet service providers.
This allows businesses to choose the network provider that best meets their needs.
They typically have a range of different types of power available, including 208V and 240V power.
This allows businesses to choose the power options that best meet their needs.
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Key Features
Colocation centres are designed to provide a secure and reliable environment for your data and equipment. They often have a physical building with a dedicated cooling system, which can include air conditioning, heating, and ventilation sources.
Some key features of colocation centres include:
- Physical security measures, such as video surveillance, biometric scanners, and trained data centre staff.
- Redundant power sources, including backup power generators, battery backup systems, and more.
- Redundant internet connections through multiple network carriers or other measures.
- Compliance with various regulations for data centre security and data centre facilities.
- On-site technical support and experienced professionals to answer questions.
A colocation centre is essentially a shared space where you can rent space for your own hardware and infrastructure, without investing in physical offices or facilities. This can be a cost-effective solution, especially for businesses that require high levels of security and reliability.
Types of Facilities

Data centers come in all shapes and sizes, and understanding the different types of facilities can help you make informed decisions about your needs.
A colocation data center can be classified into one of three types: retail colocation, wholesale colocation, or hybrid cloud colocation.
Retail colocation is a popular option where customers rent a section of space within the colocation facility, usually rack space in a caged-off and designated area.
Wholesale colocation, on the other hand, is best suited for large companies with significant power and space requirements, typically at a lower cost than a single retail customer.
Hybrid cloud colocation is a relatively new option that's gaining steam, combining in-house data center space with additional rented space from another data center or storage provider.
Here's a breakdown of the different types of colocation facilities:
By understanding these different types of facilities, you can choose the one that best fits your business needs and budget.
Building Features
A data center's building features are a key aspect of its overall design and functionality. Colocation facilities often have a distinctive appearance due to the presence of cooling equipment outside or on the roof.
To prevent fires, colocation facilities typically have fire protection systems in place, including passive and active elements, as well as fire prevention programs.
Fire protection systems may include smoke detectors, which can detect particles generated by smoldering components before a flame develops, allowing for early intervention and manual fire suppression.
Fire sprinkler systems are often provided to control a full-scale fire if it develops, and clean agent fire suppression gaseous systems may be installed to suppress a fire earlier than the fire sprinkler system.
Passive fire protection elements, such as fire walls, can restrict a fire to a portion of the facility for a limited time in the event of the failure of active fire protection systems.

19-inch racks are commonly used for data equipment and servers, while 21-inch and 23-inch racks are used for telecommunications equipment.
Cabinets and cages are used for physical access control over tenants' equipment, and overhead or underfloor cable racks and fibreguide are used for cable management.
Air conditioning is used to control the temperature and humidity in the space, and ASHRAE recommends a specific temperature and humidity range for optimal electronic equipment conditions.
Low-impedance electrical grounding is also a common feature in colocation facilities.
Few, if any, windows are typically found in colocation facilities to minimize the risk of unauthorized access and maintain a secure environment.
- Fire protection systems
- 19-inch racks for data equipment and servers
- 21-inch and 23-inch racks for telecommunications equipment
- Cabinets and cages for physical access control
- Overhead or underfloor cable racks and fibreguide
- Air conditioning
- Low-impedance electrical grounding
- Few, if any, windows
Benefits and Advantages
Using a colocation centre can bring numerous benefits to your organization. Leasing space in a colocation facility is less expensive than building or expanding a data center.
You have the freedom to choose your own computing hardware, which is a major advantage of colocation. Colocation facilities allow tenants to use computing hardware of their own choosing.
Security is a top priority in a colocation centre, with strict physical security protocols in place to protect your equipment. A colocation data center facility adheres to strict physical security protocols and might also offer protection against cyberattacks.
You'll have access to on-site technical support services, which can be a huge time-saver. Colocation facilities almost always provide on-site technical support services.
A colocation centre can also provide the scalability you need to accommodate growth. Additional data center space is usually available if needed, which means that a colocation data center can provide the scalability needed to accommodate growth.
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Infrastructure and Maintenance
Data centers have specialized systems to ensure that servers and other equipment are protected and operating at peak efficiency. Experienced professionals take care of all equipment, giving companies peace of mind.
Reliable power, cooling systems, and communication are guaranteed in colocation facilities, providing dependable connections. Companies can invest in comparable systems internally, but it can be expensive.
Maintaining an in-house server, hardware, and infrastructure site is a challenge, with physical security and constant power consumption being just two of the issues. A colocation data center provides all the necessary assets to ensure uninterrupted power usage and service.
Configuration
In a colocation environment, customers retain control over the design and usage of their equipment, but daily management of the data centre and facility are overseen by the multi-tenant colocation provider.
Customers can choose from a variety of configurations, including cabinets, cages, suites, and modules. A cabinet is a locking unit that holds a server rack, while a cage is dedicated server space within a traditional raised-floor data centre.
Cages are surrounded by mesh walls and entered through a locking door, sharing power and cooling infrastructure with other data centre tenants. Suites, on the other hand, are fully enclosed by solid partitions and entered through a locking door.
Suites may share power and cooling infrastructure with other data center tenants, or have these resources provided on a dedicated basis. Data center modules are purpose-engineered modules and components that offer scalable data center capacity.
Here are some common types of configurations:
- Cabinets: A cabinet is a locking unit that holds a server rack.
- Cages: A cage is dedicated server space within a traditional raised-floor data centre.
- Suites: A suite is a dedicated, private server space within a traditional raised-floor data centre.
- Modules: Data center modules are purpose-engineered modules and components to offer scalable data center capacity.
System Maintenance
Colocation facilities provide reliable power, cooling systems, and communication that guarantee dependable connections. They have rigorous maintenance procedures in place to ensure systems are running smoothly.
Generators in colocation facilities start automatically when utility power fails, usually running on diesel fuel. These generators may have varying levels of redundancy, depending on how the facility is built.
Battery backup systems are used to provide power during the time it takes for generators to start. Large inverters are often provided by the facility operator to convert DC power from batteries to AC power.
Customers may choose to use equipment powered directly by 48 VDC battery banks for better energy efficiency. However, this requires larger, more expensive power delivery wiring.
Colocation facilities often have redundant power feeds to customer equipment, ensuring continuous operation. High-end servers and telecommunications equipment often have two power supplies installed.
Data centers have specialized systems to ensure servers and equipment are protected and operating efficiently. This includes rigorous maintenance procedures and experienced professionals.
Redundant network connections are used to guarantee continuous operation of mission-critical applications. This includes multiple internet connections and power supplies.
Colocation facilities provide uninterrupted peace of mind, allowing businesses to avoid catastrophic issues due to downtime. They have all the assets required to ensure uninterrupted power usage and service.
A colocation data center provides all the necessary assets to ensure uninterrupted power usage and service, including reliable power systems, cooling systems, and communications. This allows businesses to focus on their core operations without worrying about system maintenance.
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Physical
Data centers are built with physical security in mind to protect systems from theft and other threats. They enforce strict security procedures and have higher degrees of physical protection.
Data centers often have video surveillance to keep an eye on the premises. This is a key part of their security measures.
Private suites are a common feature in data centers, providing an extra layer of security for sensitive equipment. Fire suppression systems are also standard, helping to prevent damage in case of a fire.
Data center security procedures are often more extensive than in-house security measures, providing an added layer of protection.
Choosing a Provider
Choosing a provider for your colocation needs can be a daunting task. You should consider the capital expenditure associated with building, maintaining and updating a large computing and networking facility.
Research is essential before selecting a colocation data center for your company. It's also important to do a needs assessment to determine your IT requirements and growth needs.
Some key considerations when evaluating a colocation provider include their business model, flexible master service agreements, and compliance with federal regulations. You should also ask tough questions about their business continuity plans and physical security measures.
Here are some specific factors to analyze when evaluating a colocation provider:
- Understanding their business model
- Flexible master service agreements
- Flexible service level agreements
- Business continuity plans
- Compliance with federal regulations
- Footprint and location of facilities
- Charge model and pricing
- Space, power, and cooling capabilities
- Network carrier redundancy and connectivity
- Physical security and access control
- Alignment with disaster recovery needs
- Monitoring and management capabilities
- Future growth and scalability
These factors will help you narrow down your choice and right-size the offering to meet your specific needs.
Considerations and Analysis
The colocation market is poised to grow significantly over the next few years, with a projected year-over-year rate of 13.3% between now and 2028. This growth is largely driven by the increased use of cloud services by both enterprises and smaller businesses.
To choose the right colocation provider, you need to analyze their business model, understanding what's important to them and whether it aligns with your needs. This involves reviewing their master service agreements, service level agreements, and business continuity plans.
Some key factors to consider when selecting a colocation provider include their footprint, charge model, and topology. You should also assess their physical security measures, network carrier redundancy, and connectivity options.
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Here are some key criteria to evaluate a colocation provider:
- Understanding their business model
- Flexible master service agreements
- Flexible service level agreements
- Business continuity plans
- Compliance with federal regulations
- Footprint and location of facilities
- Charge model and pricing
- Topology and redundancy of power, cooling, and services
- Network carrier redundancy and connectivity options
- Physical security measures
- Alignment with disaster recovery needs
- Monitoring and management capabilities
- Future growth and scalability
Things to Consider
When choosing a colocation data center, it's essential to do your research. You should consider the provider's business model to ensure it aligns with your needs.
To narrow down your choice, analyze each colo partner using the following criteria:
- Understanding their business model: What is important to this provider? Does that align with you?
- Flexible master service agreements: Get detailed MSA language. Ask for an example SLA.
- Flexible service level agreements: In case of outages, are smart hands available?
- Business continuity plans: Ask tough questions.
- Compliance: Federal regulations, guaranteed uptime, certification (HIPAA or PCI), and compliance (SOC2, SSAE-18 Type II).
- Footprint: How many locations? Where are they located?
- Charge model: Is the pricing per kW/BTU/SqFt?
- Space/power/cooling/services: What is their topology (N+1/2N/2N+1)? What is the power density to support both current and future? Redundancy (UPS/generator), connectivity (RPP/Overhead busway/Wips), back-up, cooling provisioning (low energy, thermal).
- Network carrier redundancy: Carrier neutrality, high-density environment.
- Physical security: How does this align with your security audit? Access control/CCTV/mantraps/fire safety.
- Alignment with disaster recovery: Smart hands availability? Do they offer DRaaS?
- Connectivity: What is the available connectivity to the outside world? High-speed redundant fiber-optic network? Are there dual pathways into the facility?
- Monitoring and management: Are there solutions in place to support? Do they provide 24/7 notification and secure remote access?
- Future growth: Ability to provide more power/cooling/space with your anticipated increase or decrease.
- Getting your requirements straight: Right location, tier classification.
Colocation data centers offer better physical security for your components, power backups, and managed security services. However, they may lack self-service security options and can reduce your resiliency if a primary computing process goes down.
Market Trend Analysis
The colocation market is poised to grow significantly over the next few years. The overall colocation market size is projected to climb at a year-over-year rate of 13.3% between now and 2028.
This growth is likely due to the increased use of cloud services by both enterprises and smaller businesses. Many companies need to be able to scale up their data centers as their needs change, and the projected growth of the colocation market reflects this need as well.
The demand for scalable data centers is on the rise, and colocation providers are stepping up to meet this need. The colocation market is expected to continue growing as companies look for ways to efficiently manage their data storage and processing needs.
Cloud and Network Options
You'll benefit from top-tier levels of cloud security by utilizing a colocation service, which automatically grants you access to the high level of cloud security that data centers establish for all their customers.
Data centers use the most reliable and technologically advanced firewalls to pinpoint and stop any illegal access to your systems before becoming an expensive crisis.
You can expect continuous operation of your mission-critical applications, thanks to data centers' redundant network connections that guarantee uninterrupted operation.
A colocation data center facility has redundant network connections that ensure the continuous operation of your mission-critical applications, combined with other attributes to eliminate downtime in operations.
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What Is the Difference Between Cloud Options?
When you're considering cloud options, it's essential to understand the differences between them. Colocation data centers and public cloud providers are two distinct concepts that enable businesses to run workloads in a remote data center.
In a public cloud model, the underlying physical assets are owned and managed by the cloud provider, limiting a business's control over the physical and IT infrastructure. This is in contrast to a private cloud model, where a business has more control, but it's still a shared environment.
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Colocation data centers, on the other hand, allow businesses to own and control their own data center assets, while the data center provides the physical infrastructure and facilities. This can be a more secure option for companies that require a high level of control over their data.
Here's a comparison of the two:
- Colocation data center: business owns and controls data center assets
- Public cloud: cloud provider owns and manages physical assets
In a colocation data center, businesses have full control over their equipment, such as computers, servers, and network hardware, while the data center handles the physical infrastructure, like cooling systems and security. This can be a more cost-effective option for businesses that don't require the full range of cloud services.
Better Network
Data centers use the most recent firewalls to identify and stop illegal access to your systems, providing a high level of cloud security.
Colocation facilities have redundant network connections to guarantee the continuous operation of your most mission-critical applications.
Data centers use the most reliable and technologically advanced firewalls to pinpoint and stop any illegal access to your systems before becoming an expensive crisis.
Some colocation centres feature a "meet-me-room" where carriers can efficiently exchange data, allowing customers to connect for peering.
Here are some benefits of colocation facilities' network security:
- High level of cloud security
- Reliable and technologically advanced firewalls
- Guaranteed continuous operation of mission-critical applications
Hybrid Cloud-Based
Hybrid cloud-based colocation is a flexible option for businesses that want to balance in-house and rented data center space. It involves setting up a combination of in-house data center space and that which you rent from another data center.
This approach can be particularly useful for companies with varying data storage needs, as it allows them to scale up or down as needed.
Staff and Support
Colocation centres have highly trained and experienced IT personnel on-site to monitor and manage servers, ensuring a reliable infrastructure for your components.
These professionals are skilled staff who design and implement modern infrastructure to house your equipment.
You can rely on a team of trained and specialized data center staff to provide customer support and answer any questions you may have.
Retail
Retail colocation is a great option for businesses that want to lease space inside a data center. You can bring your own equipment and have the vendor configure it in line with your specific needs.
With retail colocation, you'll have joint access to all the available data center amenities, but you won't have control over custom controls like physical security. Think of it like renting a hotel room - you have everything you need, but you can't ask the hotel to install extra security cameras.
Retail colocation assumes a shorter lease period, typically not exceeding a few years. You can easily scale up or down as your business needs change.
Exceptional Personnel
Exceptional personnel are a must-have for any data center. They're the ones who design and implement reliable and technologically advanced infrastructure.
These highly trained and experienced IT professionals are on-site to monitor and manage servers, ensuring your equipment is safe and running smoothly. They're the backbone of a successful data center.
A reliable team of data center staff is required to function, and that's why colocation data centers employ them. They're available to answer your questions and provide customer support whenever needed.
Having a constant way to reach a team of trained and specialized data center staff is crucial when relying on a colocation data center to house your crucial equipment.
Frequently Asked Questions
Why is IT called colocation?
Colocation is called as such because your equipment is housed alongside other tenants in a shared data center. This shared environment is the origin of the term "colocation
Who owns colocation data centers?
Colocation data centers are typically owned by the customer, who leases space and services from a multi-tenant provider. The provider manages the facility's daily operations, while the customer retains control over their equipment and data
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