Colocation

Colocation means renting space, power, and connectivity in a datacenter for your own physical server. You own the hardware, the datacenter provides the environment. Think of it like renting a storage unit except instead of storing furniture, you're housing your server in a professional facility with enterprise-grade infrastructure, security, and network connectivity.

What Is Colocation?

Colocation (often called "colo") is a hosting model where businesses place their privately-owned servers in a third-party datacenter. Unlike traditional hosting where you rent servers from a provider, colocation means you purchase, configure, and ship your own hardware to the facility.​

Once your server arrives, the datacenter provides:

• Physical space: Rack space, cages, or private rooms to house your equipment​
• Power: Redundant power supplies, UPS systems, and backup generators​
• Cooling: Climate control and advanced cooling systems to prevent overheating​
• Connectivity: High-speed internet with multiple bandwidth options​
• Security: 24/7 physical security, surveillance, and access controls​
• Environmental protection: Protection against natural disasters and power outages​

You maintain full ownership and control over your hardware, software, and configurations while the datacenter simply provides the infrastructure.​

How Colocation Works

Setting up colocation is straightforward:

1. Purchase your server hardware based on your specific needs and requirements.​
2. Choose a colocation provider and select a plan based on rack space, power, and bandwidth.​
3. Ship your server to the datacenter facility (or deliver it yourself).​
4. Install and configure your server in the designated rack space.​
5. Manage remotely via remote access tools, or request "remote hands" support from datacenter staff for physical tasks.​

If hardware fails, you're responsible for replacing components, either by visiting the datacenter yourself or shipping replacement parts.​

Comparison: Colocation vs. Dedicated Servers

The main difference between colocation and dedicated server hosting comes down to hardware ownership:​

Colocation offers more control and long-term cost savings if you already own hardware, while dedicated servers provide convenience and hardware support without the upfront investment.​

Advantages of Colocation

• Complete hardware control: Choose your exact server specs, brands, and components, even obsolete or specialized hardware​
• Long-term cost savings: No ongoing rental fees for hardware; you only pay for space, power, and bandwidth​
• Enhanced security: Physical access to your servers and full control over security configurations​
• Enterprise infrastructure: Benefit from datacenter-grade power, cooling, and connectivity without building your own facility​
• Flexibility: Easy to upgrade, downgrade, or reconfigure your hardware as needed​

Disadvantages of Colocation

• High initial investment: You must purchase all hardware upfront​
• Maintenance responsibility: Hardware failures require you to travel to the datacenter or ship replacement parts​
• Technical expertise required: You need staff with the skills to manage, configure, and troubleshoot your servers​
• Physical visits: Any hands-on work requires either on-site visits or paying for "remote hands" services​

Who Should Use Colocation?

Colocation is ideal for:

• Businesses with specialized hardware requirements​
• Organizations that already own servers and want better infrastructure​
• Companies needing full control over security and configurations​
• Teams with in-house technical expertise to manage hardware​
• Businesses looking for long-term cost efficiency​

If you don't have technical staff, prefer hands-off management, or need flexibility without hardware investment, dedicated server hosting or cloud hosting might be better options.​​