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A colocation center (also spelled co-location, or shortened to colo) or "carrier hotel", is a type of data centre where equipment, space, and bandwidth are available for rental to retail customers. Colocation facilities provide space, power, cooling, and physical security for the server, storage, and networking equipment of other firms and also connect them to a variety of telecommunications and network service providers with a minimum of cost and complexity[clarification needed].


Many colocation providers sell to a wide range of customers, ranging from large enterprises to small companies.[1] Typically, the customer owns the information technology (IT) equipment and the facility provides power and cooling. Customers retain control over the design and usage of their equipment, but daily management of the data center and facility are overseen by the multi-tenant colocation provider.[2]

Building features

Buildings with data centres inside them are often easy to recognize by the amount of cooling equipment located outside or on the roof.[6]

A typical server rack, commonly seen in colocation

Colocation facilities have many other special characteristics:

Colocation data centres are often audited to prove that they attain certain standards and levels of reliability; the most commonly seen systems are SSAE 16 SOC 1 Type I and Type II (formerly SAS 70 Type I and Type II) and the tier system by the Uptime Institute or TIA. For service organizations today, SSAE 16 calls for a description of its "system". This is far more detailed and comprehensive than SAS 70's description of "controls".[9] Other data center compliance standards include Health Insurance Portability and Accountability Act (HIPAA) audit and PCI DSS Standards.


Colocation facilities generally have generators that start automatically when utility power fails, usually running on diesel fuel. These generators may have varying levels of redundancy, depending on how the facility is built. Generators do not start instantaneously, so colocation facilities usually have battery backup systems. In many facilities, the operator of the facility provides large inverters to provide AC power from the batteries. In other cases, customers may install smaller UPSes in their racks.

Some customers choose to use equipment that is powered directly by 48 VDC (nominal) battery banks. This may provide better energy efficiency, and may reduce the number of parts that can fail, though the reduced voltage greatly increases necessary current, and thus the size (and cost) of power delivery wiring. An alternative to batteries is a motor–generator connected to a flywheel and diesel engine.

Many colocation facilities can provide redundant, A and B power feeds to customer equipment, and high end servers and telecommunications equipment often can have two power supplies installed.

Colocation facilities are sometimes connected to multiple sections of the utility power grid for additional reliability.

Internal connections

Colocation facility owners have differing rules regarding cross-connects between their customers, some of whom may be carriers. These rules may allow customers to run such connections at no charge, or allow customers to order such connections for a monthly fee. They may allow customers to order cross-connects to carriers, but not to other customers. Some colocation centres feature a "meet-me-room" where the different carriers housed in the centre can efficiently exchange data.[10]

Most peering points sit in colocation centres and because of the high concentration of servers inside larger colocation centres, most carriers will be interested in bringing direct connections to such buildings. In many cases, there will be a larger Internet exchange point hosted inside a colocation centre, where customers can connect for peering.[11]

See also


  1. ^ Pashke, Jeff. "Going Open – Software vendors in transition". 451 Research. Archived from the original on 6 December 2016. Retrieved 6 March 2016.
  2. ^ "Colocation: Managed or unmanaged?". 7L Networks. Retrieved 6 March 2016.
  3. ^ "Colocation Benefits And How To Get Started". Psychz Networks. Retrieved 18 February 2015.
  4. ^ DCD Intelligence "Assessing the Cost: Modular versus Traditional Build", October 2013 Archived 7 October 2014 at the Wayback Machine
  5. ^ Rath, John (October 2011). "DCK Guide to Modular Data Centers: The Modular Market". Data Center Knowledge. Archived from the original on 6 October 2014. Retrieved 1 October 2014.
  6. ^ Examples can be seen at
  7. ^ "How Much Space Will I Need in a Colocation Center?". ATI Solutions Inc. Retrieved 20 November 2018.
  8. ^ "Thermal Guidelines for Data Processing Environments, 3rd Ed. - ASHRAE Store".
  9. ^ "SSAE 16 Compliance". Colocation America. Archived from the original on 20 October 2020. Retrieved 24 August 2021.
  10. ^ "A Lesson in Internet Anatomy: The World's Densest Meet-Me Room". Wired. ISSN 1059-1028. Retrieved 15 September 2021.
  11. ^ "Learn About Colocation Benefits And How To Get Started". Psychz.Net.