Glossary · Cloud & Hosting

Colocation

Colocation is renting rack space, power and network connectivity in a data center for hardware that you own and manage.

Updated October 6, 2026

Colocation is a service where a data center provides rack space, power, cooling and network connectivity, while the customer supplies and manages their own servers and equipment.

Why it matters

It suits organizations that want control of their own hardware but do not want to build a facility with redundant power and cooling. You gain strong connectivity and physical security at predictable cost.

You are responsible for buying, installing and replacing hardware, usually with optional remote hands service from the provider for physical tasks.

Example

A company places three 1U servers and a switch in a half rack. The provider supplies two power feeds and a 1 Gbps connection. When a disk fails, the company ships a replacement and asks the provider's staff to swap it.

Common mistakes

  • Underestimating the travel and spare-parts logistics for hardware failures.
  • Exceeding the rack's power allowance, which leads to extra charges or tripped breakers.
  • Having no remote management access to the servers.

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This page is general information written by our editorial team and updated when documentation changes. Servers and providers differ, so test changes safely first. See our editorial policy and disclaimer.