What is colocation?

Colocation means renting rack space, power, and cooling in someone else's data centre instead of building your own. The colocation provider owns and operates the building, power infrastructure, cooling systems, and physical security. The customer owns and manages their own hardware, but benefits from enterprise-grade infrastructure without the capital expenditure of building a facility. Colocation is priced per kilowatt of power per month, typically ranging from $90-220/kW/month depending on market, redundancy level, and contract term. It is the dominant model for enterprise IT, financial services, content delivery, and managed service providers.