Colocation Hosting

What is colocation hosting? [Best Providers, Services, And Servers]

Colocation hosting is a viable way to host a website, but it has its pros and cons. Finding colocation hosting providers with top-performing data centers and the best services is essential.

What's colocation hosting

Companies choose colocation hosting over traditional web hosting for various reasons, including better uptime and security. Colocation pricing varies widely depending on the space you buy, the number of servers, and the services offered.

What is Colocation Hosting?

Colocation hosting relies on purchasing server hardware and using other companies’ data centers for accommodation. The web host can provide network connectivity, bandwidth packages, and computer maintenance, depending on your needs. The customer manages software and configures servers.

Colocation hosting is when data centers lease space and servers, particularly for the company. A customer renting a server has complete control over server space usage.

At the same time, the data center or the storage facility is responsible for maintaining the server in a secure environment for their clients. Colocation hosting is different than cloud hosting, where you do not have control over the physical server.

Best colocation providers for your business

Here are 9 best colocation hosting providers:

  • Cologix
  • Cyxtera
  • Liquid Web
  • Bluehost
  • Interserver
  • PhoenixNAP
  • TierPoint 

Pros and cons of colocation hosting

While colocation hosting is more expensive than shared or cloud hosting, it is also cheaper than managing your own data center. It is an excellent choice for companies that want total control over their servers without investing in a warehouse. 


  • Enable better uptime and connectivity for a reliable web hosting solution 
  • Benefit from advanced security measures.
  • Help you get compliant hosting.
  • Allow power saving and better performance to have an environmental-friendly hosting.
  • Speed to get a fast web server.
  • Give you scalable and flexible hosting.
  • Require less investment than building an in-house data center.
  • Get help and advice to set up your server 


  • Distance from the office: traveling from the office to the data center can take time if you are still looking for a nearby host. 
  • Require technical knowledge related to software management and server configuration.
  • Most expensive than traditional web hosting.
  • The upfront investment and installation fees may apply.

Colocation Benefits 

Here are 8 benefits of colocation hosting:

Downtime prevention and reliability [Better uptime and connectivity]

Colocation data centers are fully equipped to provide maximum uptime and better connection. Many colocation hosting providers utilize network redundancy to offer more security, better uptime and solve latency issues. They have all the means to:

  • ensure server cooling
  • limit downtime
  • prevent power outage
  • minimize power cost

Website downtime can be highly detrimental to your business. One hour of downtime could cost thousands of dollars, especially if you have a high-traffic site or run monetized events. 

Security and risk management (Physical and top network security) 

Any data center may be subject to data breaches; therefore, you must protect your server from cyber-attacks. They constantly update firewalls, antiviruses, and anti-spyware to preserve your data. Colocation hosting is relatively safe, and web hosts also take extra measures to physically secure servers and data.   

For example, Google data center security consists of multiple layers of security to block unwarranted access to your data. Security measures include:

  • biometric authentication
  • secure perimeter defense systems
  • 24/7 guard staff
  • camera coverage

But in the end, the renter must also take all the required measures to configure its server correctly. 

Help to get compliant hosting.

Most websites only need to follow basic rules to be ADA (accessible to people with disabilities) and GDPR compliant. But in some cases, you may need to take extra measures to get a compliant website—for example, HIPAA compliance for healthcare-related websites. Your collocation hosting provider can help you set up your server to get a fully compliant site.  

Benefits of colocation hosting

Performance and power saving

Colocation hosting helps save power and protect the environment. The same facility can host multiple servers, limiting the need to build several warehouses. New cooling system technologies and hybrid IT help to decrease data center energy use.

Colocation hosting provides excellent overall performance by taking care of the following:

  • power (including redundant power supply)
  • cooling (including redundant cooling systems)
  • cleaning to maintain a dust-free environment
  • air filtration systems
  • physical security 
  • building or warehouse
  • bandwidth

Besides, the data centers usually get electrical power, hardware, and tools at discounted prices. For these reasons, colocation hosting is cheaper than hosting your website in your office. 


Colocation facilities provide cost-effective internet connections. They use high-speed internet connection and their network of internet providers to enable low latency and high bandwidth. It would be difficult for businesses or individuals to get a well-optimized server to process data with minimal delay. And, if you do, it will cost a fortune.  

Scalability and flexibility

You can start with the entry-level plan or choose a hosting service based on the pay-as-you-go model. It gives more flexibility and is cost-effective because you pay only for your use. As your website grow, you can upgrade to get more bandwidth and extra resources.  

Minimize investment and lower cost

Not having to manage a server physically is a massive benefit of colocation hosting. Building, powering, securing, and cleaning a server room is costly and time-consuming. It is much easier to focus on business core activities when you partner with a data center offering colocation services. 

Extra services [Help you with server management and configuration]

Many colocation hosting providers will also assist you with your server configuration if you are willing to pay extra. You can benefit from their networks to find experienced IT specialists to help you manage your server. 

How to choose a colocation hosting providers or data center?

When choosing a data center suitable for your needs, there are many elements to consider. In addition to cost and location, the colocation facility should offer services that help you manage your server effectively. 

How to choose colocation hosting

Here are 9 essential factors to consider when choosing a reliable colocation provider:

  • Data center location
  • Monthly cost and installation fees 
  • Security and risk management
  • Compliance
  • Performance and power saving 
  • Speed and performance
  • Scalability and flexibility
  • Data center colocation agreement
  • Customer service and support

You may need to book a phone call with the service provider and communicate by email to get a quote and a final agreement. 

Final thoughts

Colocation hosting is an alternative to housing servers in-house. It provides a secure place and multiple services to ensure your server function at its best.

Colocation hosting is an excellent option for businesses that want to own a server without the hassle of managing it physically. Colocation hosting providers have redundant network connections to preserve your business-critical applications.


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