Colocation centre

A colocation centre (also spelled co-location, or colo) is a type of data centre where equipment, space, and bandwidth are available for rental to retail customers. They are sometimes also referred to as "carrier hotels." Colocation facilities provide space, power, cooling, and physical security for the server, storage, and networking equipment of other firms—and connect them to a variety of telecommunications and network service providers—with a minimum of cost and complexity.

Benefits

Colocation has become a popular option for companies with midsize IT needs—especially those in Internet related business. It allows companies to focus its IT staff on the actual work being done, instead of the logistical support needs which underlie the work. Significant benefits of scale (large power and mechanical systems) result in large colocation facilities, typically 4500 to 9500 square metres (roughly 50,000 to 100,000 square feet).

Claimed benefits of colocation include: