Colocation (colo) is what keeps businesses in control while avoiding the headaches of running a private data center. It’s secure remote housing for your hardware. Strong network planning keeps connections fast and reliable, while network security protects critical data from threats. You get the benefits of owning your hardware without dealing with power failures, cooling problems, or maintenance. That means your team can focus on work that helps the business grow.

Article features include:

• What is colocation?
• Benefits of colocation
• Colocation use cases
• Challenges of colocation
• Comparing colocation with other solutions
• How to choose the right colocation provider
• Why the right choice is Meter Connect

What is colo?

Colocation, or “colo,” is like renting a high-end parking spot for your servers. Instead of cramming everything into a backroom closet with questionable cooling, you place your hardware in a data center built for the job.

These facilities come with perks—backup power, climate control, and fast internet connections. Security is tight, too, with locked cages, surveillance, and access controls that make it harder to break into than a bank vault. Some colo providers let you pick from multiple internet carriers, so you're not stuck with a single option.

The big win? You keep full control of your hardware without dealing with the costs and headaches of running your own data center. Businesses looking for reliable infrastructure often turn to data center colocation services to house their critical hardware.

Benefits of colocation

Colocation takes the stress out of running your own data center. You get fewer headaches and better performance without the massive price tag.

Save money without cutting corners

Building a private data center is expensive. Power, cooling, and security alone can drain a budget fast. Colocation offers a smarter alternative—businesses pay for only the space and services they need while tapping into top-tier infrastructure that would cost a fortune to build from scratch.

Lockdown-level security without the hassle

Keeping servers safe takes more than a locked door. Colocation facilities layer in keycard or biometric access, security cameras, and on-site staff who keep an eye on things 24/7. No more worrying about unauthorized access—or that one employee who keeps tripping over cables.

Scale up without the growing pains

Adding more servers at the office usually means shuffling desks and hoping the air conditioning can keep up. In a colocation setup, scaling is easier. Need more space? Many providers offer additional racks or private cages, though availability depends on demand.

Power and connectivity that won’t quit

Office power outages and slow internet can take everything offline. Colocation facilities have backup generators, redundant power systems, and high-speed network options to keep things running. Some even offer direct connections to multiple internet providers, so you’re not stuck with a single option.

The perks of a high-end data center

Enterprise-grade cooling, fire suppression, and tightly controlled environments make colocation far more reliable than a DIY setup. Businesses stay in control of their hardware while avoiding the challenges of running a data center themselves.

Use cases for colocation

Colocation makes sense for businesses that need high-performance infrastructure without the cost of running a private data center. It provides a secure, reliable space for IT equipment while giving companies more control over their hardware.

Keeping systems online during disasters

Power outages, natural disasters, and human error can take down an entire IT operation. Businesses use colocation as a backup site, so if something goes wrong at their main location, they’ve got a second line of defense. Some go for a facility close to home for easy access, while others spread out to reduce risk. Either way, it beats scrambling to fix everything in the middle of a crisis.

Blending private infrastructure with the cloud

Some workloads need the cloud, while others are better on private servers. Colocation lets businesses use both. It keeps sensitive data secure while still getting the flexibility of cloud services. Many providers offer direct connections to cloud platforms, making data transfers faster and more reliable.

Staying compliant without building a data center

Some industries don’t just want strong security—they legally need it. Finance, healthcare, and government sectors rely on colocation to store data in facilities that meet compliance standards. Colo providers handle the locked doors, security cameras, and access controls, while businesses take care of their own configurations and policies.

Challenges of colocation

Colocation has plenty of advantages, but it’s not without its challenges. Businesses need to factor in hardware management, provider reliability, and costs to get the most out of their setup.

Managing hardware from a distance

Unlike cloud services, colocation means dealing with physical servers. If something breaks, someone has to be there to fix it. Routine maintenance and upgrades can get tricky, especially if the facility is far from your team.

Most colocation providers offer remote hands services for simple tasks like restarting servers, replacing parts, or checking connections. Using remote management tools, such as Meter’s dashboard, can also cut down on on-site visits.

Your uptime depends on the provider

A colocation facility is only as good as its infrastructure. Even with redundant power and network connections, failures can happen. If the provider experiences major outages, your business could feel the impact.

Before signing on, check the provider’s track record, service level agreements (SLAs), and redundancy measures. Some businesses also opt for multiple colocation sites or a hybrid cloud setup to avoid putting all their eggs in one basket.

Costs can add up fast

Colocation can be a cost-saver over time, but the upfront investment isn’t small. Businesses need to account for more than just rack space—hardware transport, setup, and ongoing maintenance all add to the bill.

A total cost of ownership (TCO) analysis helps compare colocation with cloud hosting or running a private data center. Planning power and space needs carefully can also prevent overspending on unused resources.

Comparing colocation with other solutions

Choosing the right data hosting strategy means weighing colocation against cloud services and on-premises data centers. Each has its own strengths, especially when it comes to control, cost, and complexity.

Colocation vs. cloud services

Cloud services make scaling easy, but they don’t always work for businesses that need specific hardware, predictable performance, or strict security rules. Colocation lets companies own and manage their equipment while using a data center’s power, cooling, and security.

Another big advantage is that costs stay predictable. Cloud pricing can spike based on usage, but with colocation, businesses pay a set rate for space and power. Some providers also offer direct links to cloud platforms, making it easy to run a hybrid setup.

Colocation vs. on-premises

Running your own data center is expensive and complicated. It means handling power, cooling, security, and maintenance—all on your own. Colocation removes that burden by giving businesses space in a facility designed for the job.

IT teams still control their hardware, but they don’t have to deal with power outages or cooling failures. It’s a smart middle ground for companies that need their own equipment without the hassle of managing an entire facility.

Choosing a colocation provider

The right one makes life easier, while the wrong choice leads to a migraine. Here’s what to look for.

Location means more than convenience

A nearby data center helps with easy access and lower latency, but distance isn’t everything. Network routes and peering agreements matter just as much. If disaster recovery is a priority, an offsite location in a different region might be the smarter call.

Connectivity can make or break performance

Fast internet is great, but redundancy is what keeps everything running. Look for providers with multiple carrier options, diverse network paths, and direct cloud connections if you need hybrid flexibility.

Security goes beyond locked doors

Good colocation facilities offer keycard or biometric access, cameras, and on-site staff, but digital security is still your responsibility. If compliance matters, check if the provider meets industry standards like SOC 2, HIPAA, or PCI DSS.

Support services save time and stress

Not all providers offer the same level of help. Remote hands can handle basic tasks, but response times vary. Monitoring keeps facility infrastructure running, but your own team is responsible for your hardware. If things go wrong, solid technical support is a must—check SLAs before signing anything.

Making colocation work with your office network

Colocation only makes sense if it connects effortlessly to your existing setup. A bad network strategy leads to lag, security gaps, and frustrated IT teams.

Build a strong connection

Your office needs a reliable way to reach the data center. VPNs, direct private links, or SD-WAN can keep things smooth. Plan bandwidth wisely—too little slows everything down, too much wastes money.

Lock it down

A remote facility means extra security layers. Firewalls, encrypted tunnels, and multi-factor authentication help keep data safe. If compliance matters, make sure your setup meets industry standards.

Keep performance steady

No one wants a sluggish connection between office and colo. Network monitoring, smart traffic management, and solid redundancy planning help avoid slowdowns. If low latency is a must, pick a provider with strong peering agreements.

Simplify colocation with Meter Connect

Colo is what keeps your infrastructure reliable, but it only works if your network can keep up. That’s where Meter Connect comes in. Our secure, scalable connections ensure smooth communication between your office and colocation facility.

But we don’t stop at the connection. Meter’s vertically integrated networks handle routine networking tasks like maintenance, monitoring, and troubleshooting. We position your IT team to focus on growth instead of stuck fixing problems.

With Meter, you get more than bandwidth. You can get a fully managed networking solution built to support colocation, scale with your business, and keep everything running without interruptions.

Request a quote from us today on Meter Connect.