Colocation services (also known as “colo”) offer a secure environment for hardware and access to network connectivity that enables reaching customers worldwide. Typically, a colocation service provides the building, cooling, power, bandwidth and physical security while the customer provides servers. Capacities in the facility are leased by the rack, cabinet, cage or room.

Colo data centers are no longer reserved for big corporations with unlimited resources as it was the case in the past. Many colos offer customizable services and have extended their offerings to include managed services that support their customers’ business initiatives.

When using colocation services, companies own, use, and maintain their own equipment, while sharing the cost of power, cooling, communications, and data center floor space with other customers. It is proven to be a good choice in cases when complete control over the equipment is required (e.g. specific industry requirements).

A common reason to switch to colocation is the need to address the limitations of an existing data center. Rather than building a new data center, it’s easier to augment current capabilities by renting space in a colocation facility.