A colocated data center, or colo, is a facility where businesses rent space to host servers, networking equipment and other computing hardware. Colocation allows organizations to outsource space and resources, such as power, cooling and bandwidth, while maintaining ownership of the equipment.
Colocating equipment in a third-party facility is ideal for businesses that want the benefits of a data center, but lack in-house resources. Many organizations choose to house their equipment in colocation centers because of the cost, reliability and security benefits.