What is Colocation Hosting? Is it Right for Your Business?

colocation hosting

Colocation Hosting

When your company is in the market for a web hosting solution, there are many options available.

Colocation hosting is where you rent space for hardware that you already own at a provider’s data center facility.

Many do not realize the advantages that can come when you decide to build your own data center facility. In this article we will explore the meaning of colocation, how it works, pros & cons. Continue reading to see if colocation is right for your organization.

What is Colocation ?

Colocation is a data center facility that companies can buy space in to host their servers and experience higher security and guaranteed uptime. Most companies do not tend to have or know how to operate data centers and all they need is a colocation facility to store their company’s critical infrastructure.

The clients own the servers and claim full authority over the hardware and software. This is the main difference between other hosting services that you may know of. The customer isn’t renting a server from the hosting provider; they are merely leasing space.

The server is physically transported to the hosting provider’s place data center. The customer can quickly upgrade or downgrade features like bandwidth and rackspace to fit the business needs By simply communicating with the colocation hosting provider.

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Why Colocation Hosting ?


Companies want to know that their data is being guarded and monitored 24/7. The hosting company secures and authorizes access to the physical location. For example the may include electronic access cards, vehicle access barriers, 24/7 camera monitoring and more Clients are responsible for securing their servers against cyber-attacks. The provider ensures no one without authorization can come close to the hardware.


The power that is provided, for example electricity and other facilities the server may require (eg.energy backups, such as generators, in case of a power outage)  is the data centers responsibility. Getting and using power efficiently is an essential component. Data centers can provide a power supply infrastructure that guarantees the highest uptime.


Colocation hosting facilities provide climate control systems at their client’s disposal. This allows data center managers to maintain ideal environmental conditions for their clients servers.This is very important to ensure the smooth running and protection of the hardware,

Risk Management

It is crucial that the web host has a disaster recovery plan. It starts by building a data center away from disaster-prone areas. Hosting data at a secure off-site location allows businesses to implement effective disaster recovery which is not possible if the software are housed in the same building as business operations (eg in case of an office fire or flood or human error).  Colocation also offers backup generators to keep servers running. in case of a power outage.


Colocation is great for scalability as you can easily scale up or down according to you needs. Whether you are a small or large business, the colocation facility  that you choose needs to be able to support your growth. Whether you start small and need to expand, move into a new market, or need to connect to the cloud colocation can do that so you can always keep up with your customers needs.


Security and regulatory requirements are a major concern for most organizations especially healthcare facilities, financial services, and other businesses deal with peoples sensitive personal information on a daily basis.The environment in which their servers are housed need to be compliant. Providing such settings is challenging and expensive for the companies themselves that is why customers turn to data centers. 

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Pros of Colocation Hosting

  • Cost Saving
  • Better Connectivity
  • Improved network security
  • Service and support
  • Scalability

Cons of Colocation Hosting

  • Limited Physical Acces
  • High cost for small businesses
  • User is in charge of maintenance
  • Have to purchase equipment and updates on your own

Colocation offers organizations a way to remain in control of their equipment but still cut down on maintenance costs, increase scalability and security. This way businesses can focus their efforts and resources on their business without the need to worry about their data solution needs.

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  • High Availability
  • Physical Security 
  • Climate Control
  • Fire Suppression System
  • Fully Power Redundant
  • Information Security
  • Disaster Recovery
  • Hardware Support

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