Colocation Security: Facilities, Services, Meaning

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Colocation Services: Why Use Them?

Colocation services provide businesses with the space, power, cooling and security required to host their IT equipment in a data center. Colo security providers offer a wide range of services tailored to the requirements of organizations of all sizes, from small businesses that may need only a few server racks to large enterprises that require entire data halls.

With cybersecurity as important as ever, it pays to work with information technology experts who can help store and manage your data. Specialized third-party service providers know how to do exactly that, no matter your company’s size or industry.

Let’s talk in more detail about what colocation security is, as well as its benefits.

One aisle of a colocation security data center. It's dark with blue-green lights reflecting off the floor.

8 Benefits of Colocation Data Center

  1. Improved uptime and reliability: To ensure that your data is always available, colocation data centers have implemented security measures against physical threats, as well as redundant power and cooling systems. This can result in improved uptime for your IT infrastructure.
  2. Reduced costs: Colo services are also a great way to lower costs as it’s much more affordable than building and maintaining your own data center. Colocation providers have economies of scale that you can benefit from.
  3. Improved security: Colocation providers have a strong focus on security, with strict physical and environmental security measures in place, protecting your most sensitive data from unauthorized access, theft or damage.
  4. Enhanced performance: You’ll also tap into high-speed networks and other resources that can improve the performance of your IT systems. This can be important for businesses that need to process large amounts of data or that need to provide high-availability services.
  5. Greater flexibility: Scale your IT infrastructure up or down as needed, so you can easily accommodate changes in your business. Businesses that are growing rapidly or that are facing seasonal fluctuations in demand will find this especially helpful.
  6. Improved compliance: Experienced providers often have experience working with businesses in regulated industries, and they can help you to meet your compliance requirements.
  7. Access to expertise: Each provider’s experts can help you to manage your IT infrastructure. This can free up your internal IT staff to focus on more important projects, such as developing new products or services.
  8. Peace of mind: Knowing that your data is safe and secure in a colocation data center can set your mind at ease. That way, you can focus on running your business without worrying about your IT infrastructure and sensitive data.

Colo Security Use Cases

Disaster Recovery

By colocating your IT equipment in a colocation facility, you can ensure that your data and applications are always available, even in the event of a disaster. Colocation facilities have redundant power and cooling systems, as well as security measures in place to protect against physical threats. This can help to ensure that your data is always available, even if your primary data center is unavailable.


Many industries, such as financial services and healthcare, are subject to strict compliance regulations. By colocating your IT equipment in a colocation facility, you can ensure that your data is being stored and managed in accordance with these regulations.

Colocation providers often have experience working with businesses in regulated industries, and they can help you to meet compliance requirements.

Data Protection

Colocation can help you to protect your data from unauthorized access, theft or damage. Colocation facilities have strict physical and environmental security measures in place, such as 24/7 security guards, video surveillance and fire suppression systems.

READ MORE: Platform Modernization: App, Software Upgrade

Where are Colocation Facilities?

Colocation facilities are located all over the world, in major cities and data center hubs. Some of the most popular locations for colocation facilities include:

  • North America: The United States and Canada are home to some of the largest and most reliable colocation facilities in the world. Major cities in North America with a high concentration of colocation facilities include:
    • New York City
    • Chicago
    • Los Angeles
    • Dallas
    • Toronto
    • Ashburn
  • Europe: Europe is another major market for colocation facilities. Major cities in Europe with a high concentration of colocation facilities include:
    • London
    • Frankfurt
    • Paris
    • Amsterdam
    • Dublin
  • Asia: Asia is a rapidly growing market for colocation facilities. Major cities in Asia with a high concentration of colocation facilities include:
    • Beijing
    • Shanghai
    • Hong Kong
    • Singapore
    • Tokyo

When choosing a colocation facility, it is important to consider the following factors:

  • Location: The location of the colocation facility is important for both performance and security. You want to choose a facility that is located in a low-risk area with access to high-speed networks.
  • Security: The security of the colocation facility is critical. You want to choose a facility that has strong physical and environmental security measures in place.
  • Uptime: The uptime of the colocation facility is important for your business. You want to choose a facility that has a high uptime guarantee.
  • Cost: The cost of colocation can vary depending on the size of your equipment, the level of services you need and the location of the facility. You want to choose a facility that fits your budget.

ALSO SEE: How To Choose Your Tech Stack

What is the Difference Between Cloud and Colocation?

Cloud computing and colocation are both viable options for hosting your IT infrastructure. Cloud computing can offer scalability, cost-effectiveness, and reliability, while colocation can offer more control, dedicated environments and high availability.

Ownership and Control

With cloud computing, you don’t own the physical hardware or infrastructure that runs your applications. Instead, you rely on the cloud provider to manage and maintain the underlying technology.

With colocation, on the other hand, you own and control the servers and other hardware that run your applications. This can give you more control and flexibility over your IT environment, but also requires more management and maintenance from your team.


While both cloud and colocation can be scalable, the process is different. With cloud computing, you can easily add or remove resources as needed by adjusting your subscription or service plan with the provider. With colocation, you need to physically add or remove servers and equipment as needed, which can take more time and resources.

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While cloud computing can be more cost-effective than traditional on-premises infrastructure, it’s important to note that costs can vary widely depending on your usage, the services you choose and the provider you use.

With colocation, you pay for the space and power your equipment uses, as well as any additional services like security or maintenance. Over time, the costs of colocation can add up, especially if you need to invest in additional hardware or infrastructure.

Security and Compliance

Both cloud and colocation providers offer high levels of security and compliance, but the responsibility for maintaining that security is different. With cloud computing, the provider is responsible for securing the underlying infrastructure, while you are responsible for securing your applications and data.

With colo security, you are responsible for both the hardware and the applications, which can give you more control, but also requires more resources.

Ultimately, the choice between cloud and colocation will depend on your business’s specific situation. A dedicated third-party resource can be a valuable asset as you consider the pros and cons of each.

What are the Different Types of Colocation?

Retail Colocation

This is the most common type of colocation, where a company rents space in a data center to house its own servers and equipment. The organization is responsible for the hardware, software and security of its systems.

Wholesale Colocation

A company leases an entire data center or a portion of a data center. The company is responsible for the hardware, software and security of its systems.

Hybrid Colocation

This is a combination of retail and wholesale colocation. The company leases space in a data center to house its own servers and equipment, but the colocation provider also provides some of the services, such as power, cooling and security.

Managed Colocation

The colocation provider also manages the customer’s servers and equipment. This can be a good option for businesses that do not have the resources or expertise to manage their own IT infrastructure.

Carrier-Neutral Colocation

This type of colocation facility offers connections to multiple telecommunications providers, making it ideal for businesses that require high levels of network connectivity and redundancy.

Edge Colocation

This type brings the data center closer to end-users by placing it in smaller, more distributed locations. This can improve latency and reduce network congestion for applications that require real-time processing.

Containerized Colocation

IT equipment is placed in shipping containers that can be transported easily and deployed quickly in different locations. This can be useful for businesses with dynamic infrastructure requirements, such as those in the events or construction industries.

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Colo Rack: What is it?

A colo rack is a specialized cabinet or enclosure designed to house servers and other IT equipment within a colocation facility.

Typically, colo racks are either 42U or 47U in height and come in either an open-frame or enclosed design. While open-frame racks are more affordable, enclosed racks provide a more secure environment for IT equipment.

Colocation racks often come with additional features such as power distribution units (PDUs), cable management systems and security features such as locks and security cameras.

When choosing a colocation facility, it’s essential to select a colo rack that meets your specific situation. Your choice depends on your IT equipment’s size, your budget and your security requirements.

Larger colo racks are more expensive but can provide more space for your equipment. On the other hand, smaller racks may be a better fit for smaller businesses with less equipment or lower budgets. Additionally, you must consider security features to protect your IT equipment from unauthorized access.

The invite-only Business Builders’ Network is full of IT professionals who specialize in colocation services.

Our latest quarterly insights report showed that cybersecurity continues to be a top priority for private equity firms and their portfolio companies. Private and public companies are also investing heavily in this area.

With so much at stake, many companies are turning to expertly matched third-party resources to walk them through colo security services. Our research and operations team works hand-in-hand with the top cybersecurity firms in industries including healthcare, manufacturing, technology and more.

When you’re ready to connect with a niche-specific provider to explore and enhance your colocation security strategy, we’ll be ready to make tailor-made introductions within a single business day.


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