Colocation Data Center: Powerhouse for Businesses of All Sizes

When it comes to services and costs, colocation is a special kind of data center offering that is defined and meant differently from other data center categories. Data center colocation offers a flexible option that can adjust to changing business demands, which can completely change how organizations manage their IT infrastructure.

Data center colocation offers a physically safe, move-in-ready space with networking, power, and cooling capabilities to serve critical business IT applications. To accommodate different capacity requirements, these data centers provide space in the form of cabinets, cages, and private suites.

What is Colocation in a Data Center?

A colocation data center is a physical site that provides businesses with servers, storage, networking hardware, power, cooling, and security for hosting IT infrastructure. A colocation data center provider sells clients this capacity in the form of cabinets, cages, or private suites.

Retail colocation data centers cater to clients with deployment sizes varying from 500 to 10,000 square feet and individual power capacity requirements of less than 1 megawatt (MW). On the other hand, bigger clients with individual needs surpassing 1 MW of power capacity and deployment sizes exceeding 10,000 square feet are catered to by wholesale colocation facilities.

Customers can utilize data center colocation to scale down or up their consumption of power, space, connectivity, and services in response to changing needs.

How Does Colocation Data Center Work?

The roles of provider and client are defined and operated with significant distinctions in colocation data centers:

  • Provider: – Colocation data center providers are in charge of maintaining the facility on a daily basis, which includes giving it enough power, cooling, security, and connectivity to telecom providers.
  • Customer: – In a colocation data center, clients are in charge of managing and maintaining their own equipment, which is kept in cabinets, cages, or private rooms. To be more precise, a client will buy and be the owner of its actual servers and networking hardware, which consists of routers, switches, storage devices, and Fiber transmission equipment. Stated differently, the company that offers colocation data centers does not lease servers to its clients. The customer will then set up their networking and servers at the data center owned by the colocation provider. While installation help is frequently provided by colo providers, it is typically the customer’s responsibility.

What are Colocation Services?

Colocation services include managed services, cross-connectivity, power, and space.

Space and Facilities: –

Customers’ IT infrastructure is kept in colocation data centers in various formats such as cabinets, cages, and private suites:

  • Cabinet: Typically standing 84 inches (7 feet) high, cabinets are appropriate for networking and server colocation setups that are more basic. To put things in perspective, one cabinet may represent a modest deployment, while 75 cabinets would represent a medium-sized deployment.
  • Cage: Enables a protected area of a colocation provider’s building to be customized to meet the unique needs of an implementation. Private cages require a minimum of five complete cabinets, while communal cages can have less than five full cabinets.
  • Private Suites: A section of a data center that is walled off from the rest and may be set up to a customer’s specifications, providing more privacy, autonomy, and physical security.

Server and IT hardware installations are made in rack space, which is the area inside a mounting frame called a rack in a data center. Typically, racks are housed inside bigger cabinets—protective enclosures. These cabinets may be arranged in private rooms or even safe cages for more protection and customization.

Power: – Colocation data centers offer their clients high power availability as well as backup power in the event of an interruption. Power distribution units (PDUs), battery backup systems, electrical backup generators, uninterruptible power supply (UPS) systems, and switchgear/transformers are among the facility’s power systems.

Connectivity and Bandwidth: –

Colocation data centers offer bandwidth and connection services that are scalable, dependable, and fast. Customers can use these facilities to link their servers and IT gear to the internet and other networks, facilitating communication and providing access to cloud services. Direct high-speed connections to various telecom carriers, internet service providers (ISPs), and cloud platforms are included in these services.

These direct linkages are usually created and kept up with the use of physical connections known as cross-connects. The meet-me rooms (MMRs), which are specialized areas often no more than 5,000 square feet, are where these cross-links are safely kept. Companies can connect to both domestic and international carriers by establishing cross-connections within the data center with the help of these interconnection services.

Managed Services: –

A variety of managed services, including network monitoring, systems administration, and engineering support services, are frequently offered by colocation providers. These managed services include operating system loading, equipment racking and stacking, server reboots, telecom support, and magnetic tape backups of important data.

Who uses Colocation?

Customers who use colocation sometimes rent smaller spaces—such as cabinets or cages—but they usually require cross-connect services and strong network connectivity. These colocation clients fall into a variety of categories, broadly classified as follows:

  • Small and medium-sized businesses seeking to contract out their needs for data centers
  • Big businesses with specific IT needs and knowledge
  • Cloud service providers (CSPs) and c(SaaS)
  • Social networking sites, online media, and content producers
  • companies that offer managed, dedicated, and shared hosting services
  • Network service providers and telecom companies
  • DNSs, or content delivery networks,
  • Governmental organizations

Colocation is a service intended for businesses who want to take advantage of the advantages of having their own data center but lack the funds and operational know-how to do so.


ESDS is a leading provider of data security and compliance services. We cater to some of India’s most regulated enterprises, banks, and government agencies. Our 7-layer security infrastructure and Fully Managed Data Center Co-location service are robust, and we subject ourselves to third-party audits to ensure the protection of sensitive data. Our clients can trust us to maintain the highest standards of security and compliance while keeping their data safe.

Prateek Singh

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