What is colocation
Colocation, or colocation hosting, is a service that allows businesses to place their own physical servers and networking equipment in a professional data center. The facility provides the infrastructure needed to operate the equipment, including power, cooling, physical security, and network connectivity.
In simple terms, colocation means that you own or control the hardware while the data center provides the environment where it operates.
Instead of maintaining servers in an office or private server room, a business can deploy its equipment in a purpose-built data center with professional power, cooling, security, and connectivity infrastructure.
Colocation Explained
Colocation separates the ownership and management of physical equipment from the operation of the facility where that equipment is hosted.
The customer typically provides and manages its own servers, storage systems, and networking equipment. The colocation provider supplies the physical space and infrastructure required to keep the equipment operational.
A colocation facility may provide:
- rack or cabinet space;
- power and backup systems;
- cooling;
- physical security;
- network connectivity;
- facility monitoring;
- on-site technical assistance.
This allows organizations to maintain control over their hardware without having to build and operate their own data center.
Key Takeaways
- Colocation allows businesses to host their own hardware in a third-party data center.
- The customer typically retains ownership and control of the equipment.
- The data center provides space, power, cooling, security, and connectivity.
- Colocation provides professional data center infrastructure without requiring a company to operate its own facility.
- Colocation differs from dedicated server hosting because the customer typically supplies the physical hardware.
How Does Colocation Work?
The customer installs or delivers physical equipment to a data center, where it is placed in an allocated rack, cabinet, or other designated space.
The facility then provides the infrastructure required to operate the equipment.
A typical colocation deployment involves:
- Hardware deployment — The customer installs servers, storage, networking equipment, or other hardware.
- Rack space — Equipment is placed in a rack, cabinet, or allocated facility space.
- Power and cooling — The facility provides electrical and environmental infrastructure for the equipment.
- Network connectivity — The equipment is connected to the internet, carriers, private networks, or other available services.
- Physical security — Access to the facility and equipment is controlled through the data center’s security procedures.
The customer is generally responsible for managing the hardware and software, although additional managed or remote-hands services may be available depending on the provider.
What Is Included in Colocation?
The exact services depend on the facility and service agreement, but colocation generally covers the physical infrastructure surrounding the customer’s equipment.
Rack Space
The customer receives space for servers and networking equipment, usually measured in rack units (U) or provided as a dedicated cabinet or rack.
Power
The facility provides power for customer equipment and may include redundant power feeds, UPS systems, and backup generators depending on the deployment.
Cooling
Data centers use dedicated cooling systems to maintain suitable operating conditions for servers and other equipment.
Physical Security
Professional data centers typically use controlled access, surveillance, monitoring, and other measures to protect customer equipment.
Network Connectivity
Colocation facilities can provide access to internet carriers, network providers, internet exchanges, and other connectivity services.
XLC operates infrastructure from Tier 3+ data centers in Los Angeles, Tokyo, and Hong Kong. Its network infrastructure includes multi-carrier connectivity, Tier 1 IP transit, and internet exchange peering.
Colocation vs Dedicated Server Hosting
Colocation and dedicated server hosting both provide access to physical computing infrastructure, but the hardware ownership model is different.
With colocation, the customer typically supplies and owns the physical hardware. The provider supplies the facility and supporting infrastructure.
With dedicated server hosting, the provider supplies the physical server and rents access to it to the customer.
| Characteristic | Colocation | Dedicated Server Hosting |
|---|---|---|
| Hardware ownership | Typically customer-owned | Typically provider-owned |
| Hardware selection | Customer chooses and supplies equipment | Based on provider’s available configurations |
| Data center space | Provided by the facility | Included with the server service |
| Hardware control | High | Depends on the provider |
| Customization | Generally high | Depends on available configurations |
| Hardware maintenance | Usually customer responsibility | Often handled by the provider |
Organizations that need control over custom physical equipment may choose dedicated servers, while businesses looking for ready-to-deploy infrastructure may choose dedicated server hosting.
Colocation vs On-Premises Infrastructure
Both colocation and on-premises infrastructure allow organizations to own and control their physical equipment.
The main difference is where the equipment is hosted.
With on-premises infrastructure, the business operates the servers in its own facility and is responsible for the supporting environment, including power, cooling, physical security, and network infrastructure.
With colocation, the hardware is deployed in a professional data center that already provides these facility-level services.
This allows organizations to maintain control over their infrastructure without having to build and operate an entire data center themselves.
Benefits of Colocation
Hardware Control
Businesses can select their own servers, storage systems, networking equipment, and other hardware according to their technical requirements.
Professional Data Center Infrastructure
Colocation provides access to purpose-built facilities with dedicated power, cooling, physical security, and network infrastructure.
Connectivity Options
A data center may provide access to multiple carriers and network providers, giving customers more options for connecting their infrastructure.
Data Center Location
Businesses can place physical infrastructure closer to users, partners, cloud environments, or target markets.
XLC provides infrastructure from data centers in Los Angeles, Tokyo, and Hong Kong, supporting organizations with global and Asia-focused infrastructure requirements.
Custom Hardware
Colocation can be useful when a business needs specialized hardware that is not available as a standard server configuration.
Common Colocation Use Cases
Enterprise Infrastructure
Businesses can deploy custom servers and networking equipment in a professional data center while retaining control over their infrastructure.
Private Cloud
Organizations building private cloud environments can use colocation to host the physical servers supporting those environments.
Hybrid Infrastructure
Colocated hardware can operate alongside public cloud resources, allowing businesses to combine physical infrastructure with cloud services.
XLC supports hybrid architectures by connecting its bare metal infrastructure with cloud environments through dedicated private links.
High-Performance Workloads
Specialized infrastructure for databases, analytics, AI, storage, and other demanding workloads can be deployed in a data center environment with professional power, cooling, and network infrastructure.
Disaster Recovery
Businesses can use geographically separate facilities to host backup infrastructure and maintain access to critical systems if the primary environment becomes unavailable.
Colocation and Network Connectivity
Network connectivity is an important consideration when choosing a colocation facility.
Depending on the facility, customers may have access to multiple carriers, internet exchanges, cloud providers, and private connectivity options.
This can be particularly important for organizations serving users across multiple regions or connecting physical infrastructure with cloud environments.
XLC’s global network combines multi-carrier connectivity, Tier 1 transit, internet exchange peering, and connectivity options for distributed infrastructure.
What Should You Consider When Choosing Colocation?
Several factors can affect whether a colocation facility is suitable for a particular deployment.
Power and Redundancy
Check available power capacity, redundancy, backup systems, and whether the facility can support the requirements of your hardware.
Cooling Capacity
High-density servers and specialized equipment can have significant cooling requirements, so the facility’s cooling infrastructure should match the planned deployment.
Network Connectivity
Consider available carriers, network providers, internet exchanges, bandwidth options, and connectivity to the regions your users need to reach.
Physical Security
Review access controls, surveillance, on-site security, and other measures used to protect the facility and customer equipment.
Location
The location of the facility can affect network latency, accessibility, regulatory requirements, and proximity to users or other infrastructure.
Remote Hands and Support
If your team cannot regularly access the facility, check whether the provider offers on-site assistance for tasks such as equipment installation, troubleshooting, or hardware replacement.