Data Center Colocation

What Does Data Center Colocation Mean?

Data center collocation is a process through which an organization can rent physical office space, network or Internet bandwidth and other resources within an existing data center to deploy its own data center.


It enables sharing the existing pool of data center resources to be used for deploying and hosting data center services for external or retail customers/organizations.

Such data centers are also known as carrier hotels or colos.

Techopedia Explains Data Center Colocation

Data center collocation is primarily provided by data center or IT service providers.

Typically, data center collocation is deployed within a data center collocation facility. Such a facility is similar to a data center having ample, unused floor space available for rental. The owner of the data center collocation facility provides the floor space, cooling, power and physical security whereas the customer brings in its own servers, storage and/or applications. Data center collocation primarily enables organizations to deploy a data center facility without the need to buy or manage it.


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Margaret Rouse
Technology Expert

Margaret is an award-winning technical writer and teacher known for her ability to explain complex technical subjects to a non-technical business audience. Over the past twenty years, her IT definitions have been published by Que in an encyclopedia of technology terms and cited in articles by the New York Times, Time Magazine, USA Today, ZDNet, PC Magazine, and Discovery Magazine. She joined Techopedia in 2011. Margaret's idea of a fun day is helping IT and business professionals learn to speak each other’s highly specialized languages.