What does colocation mean in business? A colocation facility, or colo, is a data center facility in which a business can rent space for servers and other computing hardware. Typically, a colo provides the building, cooling, power, bandwidth and physical security, while the customer provides servers and storage.
Are colocation data centers profitable? Data centers are expensive, resource intensive, and rarely profitable.
What is the difference between a data center and a colocation? A data centre is a purpose-built facility designed to efficiently store, power, cool and connect your IT infrastructure. Colocation is one of many services data centres provide, and is the act of hosting your IT hardware (like servers) outside of your premises and in a data centre.