What is a colocation facility?
A colocation facility is a physical data center hosting facility that enables customers to provide their own servers, networks, and storage hardware with Internet bandwidth, power, backup power, and other services required in a data center.
Colocation systems build on the economies of scale that can be achieved through shared use of bandwidth, electricity and disaster control. In colocation facilities, customers only own the server and the associated hardware and purchase all other services on the basis of a monthly billing cycle.
Colocation providers provide their services in two ways:
1. The customer buys hardware and physically brings it to the colocation facility.
2. The provider buys and installs the server and other hardware devices based on user requirements, then bills the customer and continues to charge for the monthly service.
Colocation providers typically have the ability to host thousands of servers, powerful standby generators, and uninterruptible power supplies, disaster recovery and backup procedures. They also have industry standard certifications like typical hosting providers.