The best colocation providers help businesses run their own servers without building a data center. You keep full control of your hardware while the provider handles power, cooling, and colocation security. It’s a smart way to get reliable infrastructure that scales with you.

Find out about:

• How colocation works and why businesses use it
• What makes a provider worth considering
• How to judge reliability, security, and scalability
• What to check before signing a colocation contract
• Why Point of Presence (PoP) location matters
• How colocation compares to managed hosting
• What’s changing in colocation in 2025
• How enterprise-grade differs from basic setups
• How Meter helps you manage colocated networks
• Common questions about colocation setups
• Why Meter Connect is worth a closer look

What is colocation, and how does it work?

Colocation lets businesses put their own servers and network gear in a third-party data center. The provider supplies space, power, and cooling, while you keep full control over the equipment.

You get high-speed connections, backup power, and strong physical security without needing your own building. Many colocation providers also offer remote hands, cross-connects, and direct links to cloud platforms.

Some facilities support carrier-neutral bandwidth, so you’re not locked into a single internet provider.

More details can be found in our full explainer on "What is colo?"

The best colocation providers at a glance

We analyzed top colocation providers across the U.S. based on network reach, reliability, physical security, and pricing transparency. Here’s how they compare:

How we chose the best colocation providers

We picked colocation service providers that offer strong, real-world value—not just brand recognition. All providers on this list met high standards in the areas that matter most:

• Each provider offers at least 99.999% uptime and clear service guarantees.
• All use keycards, cameras, and often biometric locks. Most follow rules like SOC 2, ISO 27001, HIPAA, or PCI.
• All offer multiple internet providers, cloud links, and high-speed fiber.
• Plans range from a single rack to private cages. Many have pricing that you can scale as you grow.
• Staff can restart servers, replace parts, or check hardware when you're not there.
• Many use smart cooling and green power, which lowers energy bills over time.
• Some offer managed services like firewall setup or system checks.

The 9 best colocation service providers for 2025

Each provider on this list brings something different to the table. Some focus on size and reach. Others lean into support, flexibility, or security.

Every one of them meets high standards for uptime, connectivity, and physical safety.

1. Equinix – Best for global interconnection and cloud access

Equinix runs over 240 data centers, with many located in major U.S. cities. Their sites have lots of network carriers and connect directly to AWS, Azure, Google Cloud, and others.

Teams can use Equinix Fabric to link systems between cities or clouds with low delay and high speed. The setup works well for companies that need fast connections in many places.

Costs depend on location, power use, and bandwidth. All quotes are custom. Equinix is a good fit for businesses with large networks and multi-cloud traffic.

Pros:

• Dense cloud and carrier access in major U.S. markets
• Equinix Fabric enables fast interconnection across regions
• Strong global and multi-cloud compatibility

Cons:

• Custom pricing with limited upfront cost transparency
• May be overbuilt for small or single-site deployments
• Service model focuses on scale, not hands-on support

2. Digital Realty – Best for hybrid cloud and flexible builds

Digital Realty has over 100 data centers in the U.S. They help businesses connect their own hardware to cloud services like AWS and Azure using their ServiceFabric platform.

Their sites work well for companies that need to grow over time or meet rules for healthcare, finance, and other industries. Teams moving to hybrid setups can stay in control while adding cloud access.

Pricing is handled by quote, though some basic costs are listed by region. Digital Realty fits businesses that use both cloud and on-prem systems in more than one location.

Pros:

• Built-in support for hybrid cloud through ServiceFabric
• Wide U.S. footprint with room to scale over time
• Meets compliance needs for regulated industries

Cons:

• Pricing is mostly custom, with limited standardization
• Support experience may vary by location
• Less focused on smaller, single-site deployments

3. Centersquare (formerly Cyxtera) – Best for security and remote access

Centersquare, formed from the merger of Cyxtera and Evoque in early 2024, operates data centers across the U.S. with a focus on secure access and remote management. Their AppGate tool enables teams to manage servers without on-site presence.

They offer smart cabinets for quick setup and support zero-trust security models. Customers can choose from multiple carriers and connect to public cloud services.

Quotes are based on space, power, and support requirements. Centersquare is ideal for teams prioritizing strong security and remote access from the outset.

Pros:

• Strong focus on security with zero-trust access tools like AppGate
• Remote-friendly management reduces the need for on-site visits
• Smart cabinets allow for faster hardware deployment

Cons:

• Fully custom pricing may limit predictability
• May be too security-focused for teams with simple infrastructure needs
• Limited public information on service tiers and add-ons

4. CoreSite – Best for metro access and uptime

CoreSite runs data centers in major U.S. cities, including New York, Los Angeles, Chicago, and Denver. Their strength is uptime and direct cloud access. They connect to AWS, Azure, Google Cloud, and Oracle with low delay.

Many businesses use CoreSite when they need fast, local service in busy metro areas. The company lists cabinet and power rates more openly than most, but total costs still depend on your setup.

CoreSite works well for teams in big cities that rely on steady service and easy cloud links.

Pros:

• Strong presence in key U.S. metro markets
• Low-latency connections to major cloud providers
• More transparent pricing on cabinet and power options

Cons:

• Limited coverage outside major cities
• Still relies on custom quotes for full pricing
• May not offer the same breadth of services as larger providers

5. Flexential – Best for mid-sized enterprises that need support

Flexential offers more than colocation. They also provide managed IT, disaster recovery, cloud backup, and help with rules like HIPAA, PCI, and SOC 2.

Their platform lets teams track system health and send support requests in one place. This setup works well for growing companies that need help but don’t want to hire more IT staff.

Plans follow a tiered model. Final pricing depends on bandwidth, usage, and support needs. Flexential is a strong option for mid-sized teams that want colocation and ongoing support together.

Pros:

• Includes managed IT, disaster recovery, and compliance support
• Centralized platform for monitoring and support requests
• Tiered plans tailored for mid-sized business needs

Cons:

• Less suited for large-scale or global deployments
• Pricing varies by usage and service level
• May be too support-heavy for teams that prefer full control

6. Iron Mountain – Best for compliance and physical security

Iron Mountain builds data centers with strong physical security. Some sites are underground or heavily protected. The company has a long history in secure record storage and brings that same focus to colocation.

Facilities meet rules like HIPAA, PCI, ISO, and FISMA. That makes them a good fit for healthcare, government, and finance teams that handle sensitive data.

Quotes depend on the setup, but prices are often higher due to the extra protections. Iron Mountain works best for businesses that need strict security and full compliance.

Pros:

• High physical security, including underground and shielded facilities
• Strong compliance support for HIPAA, PCI, ISO, and FISMA
• Trusted brand with decades of experience in secure storage

Cons:

• Often more expensive due to added protections
• May be overbuilt for businesses with basic colocation needs
• Limited flexibility compared to more cloud-focused providers

7. Switch – Best for power efficiency and long-term scale

Switch runs large data centers in cities like Las Vegas, Reno, Grand Rapids, and Atlanta. Every site uses 100% renewable power and meets Tier 5 Platinum standards, which are higher than most in the industry.

Smart cooling systems and energy tracking help lower costs over time while keeping systems online. The setup works well for big companies that plan to grow and want to save on power.

All pricing is custom and depends on how much space and energy your setup needs. Switch is a good choice for businesses that need room to scale and care about energy use.

Pros:

• 100% renewable power and industry-leading energy standards
• Tier 5 Platinum certification across all facilities
• Designed for large-scale growth and long-term efficiency

Cons:

• Custom pricing with no public baseline rates
• May be oversized for small or low-power deployments
• Limited data center locations compared to nationwide providers

8. TierPoint – Best for regional reach and disaster recovery

TierPoint runs over 40 data centers across the U.S., with many in smaller and mid-sized cities. Each location offers colocation, hybrid cloud access, disaster recovery, and security services.

They focus on helping businesses outside major metro areas get strong, reliable infrastructure. Teams with remote offices, edge setups, or compliance needs often turn to TierPoint for local support.

Pricing is modular and based on rack size, power, and services. TierPoint is a good fit for companies that want strong coverage without relying on big-city providers.

Pros:

• Strong coverage in smaller and mid-sized U.S. cities
• Includes disaster recovery, hybrid cloud, and security services
• Modular pricing makes it easier to align with specific needs

Cons:

• Fewer options in major metro hubs compared to larger providers
• Services and support may vary by location
• Less visibility into enterprise-scale interconnection options

9. Element Critical – Best for service-focused colocation in top metros

Element Critical offers colocation in key U.S. cities like Northern Virginia, Silicon Valley, and Chicago. Their sites are built for speed and growth, with a strong focus on customer support.

They provide remote hands, hybrid cloud options, and fast on-site help without long wait times. This setup works well for mid-sized companies that want reliable service in busy metro areas.

There’s no flat rate—costs depend on what you need and how much space you're using. Element Critical is a solid pick for teams that want support and fast access without working through a giant provider.

Pros:

• Focused customer support with fast on-site assistance
• Key locations in high-demand metro areas
• Offers hybrid connectivity and remote hands as standard

Cons:

• Limited national footprint outside core cities
• No flat-rate pricing; quotes vary by setup
• May not scale as easily as larger providers for multi-region needs

Tips for choosing the right colocation provider in 2025

Colocation is about finding the right partner to support your infrastructure—now and as it grows. All you have to do is follow our lead.

Below are the key things to evaluate before signing a contract with any colocation service provider.

Uptime and service guarantees should be non-negotiable

Look for a provider that offers at least 99.999% uptime backed by a clear SLA. Ask how they handle power redundancy, cooling, and failover. If they can’t show their track record, keep shopping.

Physical security needs to match your risk

The best colocation data center providers will offer multi-layered security. That means keycard access, video surveillance, biometric systems, and onsite personnel. 

If your industry has compliance needs (HIPAA, PCI, SOC 2, etc.), verify that those certifications are current and site-specific—not just corporate claims.

Network connectivity options are a make-or-break detail

Carrier-neutral facilities are always the better bet. You want access to multiple Tier 1 providers, cloud on-ramps, and cross-connect options. Some providers charge extra for cloud links or only support a limited number of carriers—make sure that detail’s in the contract.

Scalability can save you from future migration

Start with what you need now—but look ahead. If your business scales, will the provider let you expand within the same building or region? Can you upgrade power density or move into private cages? Lock-in without growth flexibility can become a costly problem later.

Don’t overlook remote hands and support responsiveness

Remote hands services matter more than you think. Ask how fast they respond, what’s covered, and how they're billed. You don’t want to find out during a failure that someone has to drive in from another city to push a button.

Energy efficiency can help control long-term costs

Energy usage affects more than your utility bill. Efficient cooling and renewable power sourcing can help reduce your carbon footprint and improve total cost of ownership (TCO). Some providers may also offer green certifications or carbon offset options.

Managed services may fill skill gaps in your team

If you don’t have a full IT staff, managed colocation services like patching, firewall setup, or monitoring can save time and stress. Just know what’s included—and what isn’t—so you don’t overpay for basics or miss support you assumed was standard.

Data center location affects more than latency

Choose a location that aligns with your users, legal requirements, and internal teams. Proximity to your primary office can help for maintenance trips. Just don’t sacrifice performance or vendor quality for convenience alone.

Ask the right questions before you commit

Do not forget to ask a provider:

• What does the SLA guarantee—and what happens if they miss it?
  
  
• How many carriers are available on-site?
  
  
• Can I bring in my own equipment and networking tools?
  
  
• What happens when I need more space or power?
  
  
• How fast is remote response during off-hours?

Colocation contract terms: What to watch out for

Picking the right colocation provider is only part of the equation. The other part is knowing what you're actually agreeing to. Colocation contracts can be detailed, vague, or misleading—sometimes all three. Here’s what to pay attention to before you sign.

Look closely at bandwidth charges

Not every colocation contract includes bandwidth in the base price. Some providers meter traffic by the gigabyte. Others bundle it in, but cap your peak usage. Ask if bandwidth is billed by commit level, burst rate, or 95th percentile—and what happens if you exceed that.

Know your power pricing model

Power is rarely flat-rate. Most providers bill based on usage (measured in kW), capacity (what you reserve), or a blend of both. Some even charge a premium for high-density racks. If you're not careful, power can become the biggest variable on your monthly bill.

Confirm upgrade flexibility

Your needs will change. A good provider will allow you to scale up or out without starting over. Ask how upgrades are handled—do you need a new contract to add power, racks, or bandwidth? If you need to move to a larger cage, does that trigger new setup fees?

Clarify the SLA details

Almost every provider promises “five nines” uptime. But read the fine print.

Are maintenance windows excluded? How is downtime measured—and what compensation do you get if they miss it? A good SLA will define exactly how network, power, and cooling failures are handled.

Understand remote hands policies

Some remote hands services are included. Others are billed hourly or in 15-minute increments. And some support is only available during certain hours. Ask how fast the team can respond to a ticket—and whether that speed is guaranteed.

Watch the contract lock-in period

Most colocation deals last between 12 and 36 months. Shorter terms cost more, but offer flexibility. Longer terms lower your monthly cost, but they can be hard to exit.

Be sure you understand early termination penalties, renewal rules, and whether you can renegotiate partway through.

Understanding the role of Point of Presence (PoP) in colocation

A Point of Presence (PoP) is the spot where your infrastructure connects to the broader network.

In a colocation setup, that connection could link you to internet carriers, cloud providers, or your own remote offices. The quality of that PoP—and what it connects to—can directly affect latency, bandwidth costs, and uptime.

Some colocation service providers offer access to carrier-dense PoPs with multiple Tier 1 providers. Others may limit you to a small set of upstream links or charge extra for cloud on-ramps.

It’s important to ask where the PoP is located, how it’s provisioned, and what kind of failover is supported.

Colocation vs. managed hosting: Quick comparison

Colocation and managed hosting both take infrastructure off your hands—but they solve different problems.

Colocation gives you control. You own the hardware and place it in a third-party facility. You handle the software, updates, and networking, but benefit from reliable power, cooling, and physical security.

Managed hosting hands over more responsibility. The provider owns the gear and handles most or all of the management, including hardware replacement and OS maintenance.

Colocation works best for businesses with in-house expertise that need custom setups, compliance control, or high performance. Managed hosting may be better for teams that want to stay focused on software and skip hardware entirely.

Want a deeper breakdown? See our full guide on “Colocation vs. managed hosting vs. cloud: Which is best?”

How colocation is evolving in 2025

Colocation used to be about offloading real estate and utilities. Today, it's more about control, connectivity, and flexibility—and that shift is changing what businesses expect from their providers.

Remote-first management is the new standard

IT teams no longer want to roll trucks for routine updates. They expect to manage ports and bandwidth remotely. Providers offering remote visibility, fast provisioning, and responsive remote hands are gaining more business—especially from hybrid and distributed teams.

Colocation now fits into hybrid cloud

Very few businesses run everything on-prem anymore. Most colocated setups anchor critical systems while linking to public cloud providers. Facilities with fast, vendor-neutral cloud on-ramps—like AWS, Azure, or Google Cloud—are gaining traction. This is especially true for software companies and industries with strict compliance needs.

Sustainability is influencing buying decisions

Data centers use a lot of power. More businesses now ask about renewable energy, Power Usage Effectiveness (PUE) ratings, and cooling systems. Providers that show energy progress—or help offset carbon impact—stand out during the RFP process.

Sustainability is no longer a side bonus. It’s now part of the buying criteria.

Regulatory pressure keeps increasing

In 2025, more companies are feeling pressure from privacy laws, industry regulations, and internal audits. Colocation gives them physical control over hardware and data—without owning the entire facility.

But they’re also asking harder questions:

• Are the certifications site-specific?
• Can I restrict access logs?
• Do I know exactly who enters my cabinet and when?

Colocation isn’t fading—it’s evolving to meet modern infrastructure demands. The providers that adapt fastest are the ones businesses trust to handle what’s next.

What sets enterprise-grade colocation apart from basic hosting?

The difference comes down to more than price—it’s about what you're actually getting.

Basic hosting may give you rack space and power, but enterprise-grade colocation includes built-in redundancy, carrier-neutral connectivity, tighter security, and compliance you can prove.

If you're colocating core infrastructure, those differences matter. Here's what to look for when deciding between the two.

Redundancy isn’t optional—it's engineered in

Enterprise-grade colocation isn’t just about having power—it’s about having multiple, independent power paths. That usually includes dual utility feeds, on-site backup generators, and N+1 or 2N redundancy across cooling and UPS systems. Entry-level facilities might advertise uptime, butthey can’t prove how it’s achieved.

Ask whether the facility supports multiple power circuits per rack, and if those circuits are fed by different sources. That kind of built-in resilience makes the difference between a brief incident and a major outage.

Carrier neutrality creates network leverage

Enterprise facilities typically operate as carrier-neutral exchanges. That means you can choose from several Tier 1 providers, add cross-connects between systems, and negotiate better rates through competition.

In contrast, lower-tier data centers often lock you into one or two ISPs—sometimes bundled with your contract. If your bandwidth costs spike or you want to add a cloud on-ramp, your options may be limited.

Carrier density and PoP access are key signals of an enterprise-grade operation.

Compliance and audit readiness are baked in

Basic hosting environments may claim to be “secure,” but they can’t back this up with certifications. Enterprise colocation data center providers will offer site-specific compliance for frameworks like SOC 2 Type II, ISO 27001, PCI DSS, HIPAA, and FISMA.

They’ll also provide documentation and logs for audit trails, physical access reviews, and chain-of-custody tracking. If your business operates in healthcare, finance, or government-adjacent industries, these controls aren’t a luxury—they’re a requirement.

Smart physical access, not just a locked door

In lower-tier facilities, “security” might mean a keypad on the front gate and a shared cage in the back. Enterprise-grade colocation uses multi-factor authentication, camera surveillance, mantraps, and badge-based logging.

You’ll know exactly who accessed your equipment, when they did it, and what actions they took. For high-stakes infrastructure, that level of traceability is essential.

Environmental control is precise, not general

Enterprise facilities use advanced cooling systems designed to maintain optimal airflow and temperature at the rack level—not just room level. That means higher power density, better performance, and less risk of thermal drift during heavy load periods.

Basic providers may only guarantee average room conditions, which puts high-performance equipment at risk if airflow is uneven or under-monitored.

Support goes beyond remote hands

Basic colocation often includes little more than power, space, and a ticketing portal. Enterprise-grade providers offer 24/7 support, rapid response SLAs, and sometimes white-glove services like structured cabling, inventory checks, or equipment staging.

Even if you don’t use those services every day, knowing they’re available changes how you plan, troubleshoot, and grow.

How Meter supports businesses using colocation

Meter doesn’t run data centers, but we work with companies that colocate their gear every day. Colocation solves the space and power problem. We solve everything that comes after.

From the network port to the cloud handoff, we give your team full control—without stepping foot inside the facility.

Full remote visibility and control

Colocation gives you rack space, power, and physical security. Meter gives you the tools to manage what’s inside those racks—from wherever your team is.

With the Meter dashboard, IT teams can view real-time traffic, manage switch ports, adjust bandwidth, and confirm link status across one or more sites.

There’s no need to fly someone out or rely on remote hands for routine changes. You stay in control without stepping into the data center.

Fewer site visits, faster problem resolution

When something breaks, the last thing your team needs is to chase down physical access. Meter monitors your infrastructure network in real time and alerts you when performance drops, links go down, or traffic patterns look off.

You can troubleshoot issues remotely—no waiting for remote hands, no emergency travel. Problems get fixed faster, and on-site visits become rare exceptions instead of the norm.

Network performance that matches your hardware

Strong hardware doesn’t help much without a connection that can keep up. Meter builds private lines and uplinks designed for high-throughput tasks like backups, cloud access, and regional sync.

We focus on scalability in networking, so as your traffic grows, your performance doesn’t drop. Whether you’re scaling a SaaS product or syncing data across sites, the network won’t be the bottleneck.

Support that sticks with you

Once a colocation contract is signed, your provider’s job is mostly done. Meter stays involved. We don’t just set up the network—we support it, monitor it, and adjust it as your needs change.

Need help expanding to a second site? Swapping equipment? Testing failover? We’re still in the picture.

Frequently asked questions

Is colocation better than cloud hosting?

Colocation gives you more control. It works well for teams with strict compliance or performance needs.

How much does colocation cost?

Pricing depends on space, power, and services. Basic plans start at around $500 per month on average, but larger setups cost more.

What industries use colocation the most?

Finance, healthcare, and SaaS rely on colocation for security and control. Retail, media, and e-commerce use it for edge and regional performance.

Can I use colocation with a hybrid cloud setup?

Yes, most colocation data center companies offer direct cloud access. It supports hybrid setups by linking your hardware to cloud services.

Partner with Meter Connect

Colocation providers give you the space. Meter helps you run everything inside it. You still need to manage connections, monitor performance, and scale with your business.

Meter Connect builds secure, scalable links that support colocation, cloud, and on-prem networks—all backed by real-time visibility and support. We provide you with business internet quotes and unify all of your ISP bills onto one centralized platform.

Plus, our vertically integrated network reduces day-to-day busywork, so your IT team can focus on what actually moves the business forward.

You’re not just getting a connection. You’re getting a long-term partner that keeps your network running and ready for what’s next.

Request a quote from us today on Meter Connect.