Definition - What does Co-location mean?
Techopedia explains Co-location
Co-location facilities are usually employed by service providers to store equipment used by their clients and of course, also their own. These facilities provide power, cooling, space and physical security for the equipment. The reason that organizations co-locate their hardware resources is because they are not able to provide a suitable location and maintenance for such specialized hardware within their premises. It would be too expensive for them to create special facilities, while service providers already have these type of facilities because of the nature of their business.